What is a Dutch Auction and how does it work?
The Dutch Auction format is used to offer mass quantities of one item. If the item comes in quantity and all the items are identical, you can list them as a Dutch Auction with a minimum opening bid that matches your selling price. For example, suppose you have 500 widgets, all identical. Let's say you would like to sell them for $5.99 each. You would list them as a Dutch Auction with a quantity of 500 and an opening bid of $5.99.
Bidders on a Dutch Auction do not use the proxy bidding system - that is, there are no hidden maximum bids. What the bidder bids is what is displayed on the bidding history. In Dutch Auctions, the current standings are always displayed in the bidding history during the course of the auction, and the complete bidding history (including unsuccessful bids) is available as well.
Dutch Auction bids must have a higher Total Bid Value than previous bids. The Total Bid Value of the bid is determined by multiplying the dollar amount bid by the number of items bid on. Reducing this Total Bid Value in subsequent bids is not permitted, and your new bid will be rejected. This rule protects sellers from unscrupulous bidders who bid for the entire quantity (thereby discouraging other bidders from participating), and then reduce their quantity at the last minute.
Bidders in a Dutch Auction will not receive Outbid Notices if they are scrolled off the list of successful Dutch Auction bidders. Dutch Auction bidders must actively monitor their bids in order to rebid if necessary.
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