Proxy Bidding for Auction on RtistiQ
Proxy Bid is an option provided by RtistiQ as an alternative to “Bid now”. Proxy Bid is a service that allows users to set up their maximum bid amount ahead of the auction finale and it is offered for convenience reasons to users that might not be able to join live the auction or who want to have a better chance to win the desired lot. The Maximum Bid is the highest amount a user is willing to bid for a lot and is exclusive of the buyer’s premium, taxes, duties, and other charges. All bids submitted through the Proxy Bid service are binding, irrevocable, and executed automatically.
Provided that user is registered on RtistiQ, they can submit their maximum bid amount and the system will place bids on their behalf in minimum increments unless another user places a higher bid than their maximum bid amount. The bid increment is pre-set by the auction platform, in accordance with Terms and Conditions, and is the amount that a proxy bid must increase by. The system will place a new bid automatically following the bid increment every time someone else places a higher bid than the user and will continue to do that until the auction is over and the user wins, or the highest bid goes over the maximum amount set by the user.
Bidders are notified about any changes in their current bid and if their maximum bid has been outbid. The user has the option to increase their maximum bid amount to continue participating in the Auction.
A Lot with a Starting Price of $10 with the step-up price of $1
Scenario 1: User A submits a maximum bid of $30. His current bid is $10 until
A new user, User B, places the next bid of $11. The system will increase the bid on behalf of User A to $11.
User B is notified that he is no longer the highest bidder due to a proxy bid that has been placed in the name of User A. User B is prompted to increase his bid amount to the next bidding step - $12.
User A gets the notification that their current bid is $11. The system has increased the bid in their name. User A can take no action or further increases the maximum bid amount.
If no further bids are placed by any competitive users by the auction time ends, User A wins the bid at $11 even if the maximum bid amount is set at $30. The system will increase the maximum bid amount only if competitive bids are submitted by other users.
Scenario 2: User B places a bid of $20 while User A has submitted first their maximum bid amount of $30. Similar to Scenario 1, the bid placed by User B is not successful. The system increases the bid for $20 on behalf of User A. User A is still the leading bidder with a current bid of $20.
User B is notified that he is no longer the highest bidder due to a proxy bid that has been placed in the name of User A. User B is prompted to increase his bid amount to the next bidding step - $21
User A gets notified that their current bid is $20. The system has increased the bid in their name. User A can take no action or further increases the maximum bid amount.
Scenario 3: Two users competing for the same lot setting for Proxy Bidding
If both, User A and User B, opt for Proxy bidding, the maximum bid amount allowed for User B should be higher than any existing maximum proxy bid placed by User A and in increment multiples.
The bid accepted for User B would be the Maximum bid by User A + the minimum increment value in favor of the new user. The first user is notified of being outbid.
User B sets the maximum proxy Bid as $40. The system now places the current bid as $31 on behalf of User B.
User A gets the notification that their Max Bid amount set as proxy was counterbid by another user and the current bid is $31. User A can either counter bid with the next bid allowed of $32 or set a new maximum proxy bid for the system to continue bidding on behalf of the user.
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Updated on: 30/06/2022