What is the Difference Between Pre-Bidding and Real-Time Bidding?
Understanding the auction bidding process
Whether you are new or have been in the auction industry for a time, you will likely have noticed that there is a whole vocabulary associated with auctions and the auction process. We want to take you through two of the terms that you will want to understand before participating in an auction: pre-bidding and live bidding.
Pre-bidding is the first step of any online auction. During the pre-bidding period for any auction, prior to the real-time bidding starting on auction day, individuals are able to place bids on lots. These pre-bids are not yet visible to the public, so no one knows how many people are intending on bidding on an item, or how much they are willing to pay for that item. The results of any pre-bidding will become viewable once the auction opens, with the current bid level. And once the auction goes live, the real-time bidding starts. This is a pretty easy process to figure out. You simply continue to bid by the set bid increment (the minimum amount by which every bid must increase by) until you end up as the highest bidder or the bidding goes over the maximum that you have set for yourself.
There are different advantages to taking part in both types of bidding. Choosing to place a pre-bid allows you to head into an auction with a sense of understanding or even of added confidence if you had the highest pre-bid. You can go into the auction on your own terms, placing a higher pre-bid on an item that might deter others from bidding when the real-time bidding starts. The pre-bidding process allows you to dictate the beginning of the auction – at least until the highest pre-bid is made available. In the pre-bidding process you will also be able to set a maximum bid if you will not be able to be at your computer during the real-time bidding. Of course, there are advantages to holding off and waiting for the real-time bidding to begin as well. For instance, if you are only participating in real-time bidding you won’t have committed anything if you decide that you have changed your mind (all bids placed are final should you become the highest bidder). You also won’t end up overbidding yourself. Like we mentioned above, you could potentially place a pre-bid higher than anyone else in the auction was planning on bidding, thus having to pay substantially more than you would have if you simply waited to bid once the auction was live. Real-time bidding allows you to have all the information possible before participating in the auction.
Whichever way you choose to bid, you are sure to have a blast participating in an online auction. Auctions are such a great way to buy items you’re interested in and can often result in much lower prices than you would pay in a store. Afterall, YOU are the one dictating how much you are willing to pay!