Go To Adsense Home | Add to Favorites
Shill Bidding: How Scumbag Bidders Rob Honest Sellers Like You
How Honest Sellers Can Be Robbed By Dishonest Buyers
Shill bidding deal is a 21st century version of a confidence game. The purpose of shill bidding is to buy merchandise at an artificially low price which can then be resold for a healthy profit. It involves either two different buyers or one buyer who possesses two different eBay IDs.
Shill bidding is often easy to detect and therefore is usually more successful with an inexperienced seller who doesn't know what to look for. We can't know for certain, but most likely shill bidders look for sellers with low feedback because they know a more experienced seller might realize what is going on.
Shill bidding is only worthwhile with an expensive item. If you are selling many low priced, high-volume items, shill bidding will not be a concern of yours.
Let's use an extreme example so that sellers can easily identify the shill building pattern and be aware of what it looks like. Forewarned is forearmed, and all that.
Let's pretend that a seller has an antique doll for sale. She has seen a few other dolls similar to hers and she knows she can expect approximately $300 for this doll. Our unscrupulous bidders also know that $300 is a reasonable and legitimate price and they want to get it for much less. The seller decides to open the bidding at only $9.95 to encourage collectors to flock to her doll auction.
Basically the way the scam works is like this:
Buyer A will open the bidding at $9.95.
His confederate, Buyer B, will offer an inflated bid, above and beyond the true value of the doll. Let's say he builds $350.
The purpose of such a high bid is to discourage all legitimate prospective buyers from even getting in the game. Obviously, genuine collectors and buyers will not be interested in paying in excess of $300 if that is what the doll is really worth.
There may or may not be a few intervening builders between the placement of the opening bid and the absurd one. If there are any bids, they will be nearer the opening bid of $9.95 and therefore will not raise the price very much. In fact, our dishonest pair might be happy if someone else bids, because more bids make the auction look more legitimate.
The auction will hang there in eBay limbo until only hours before the closing deadline. Shortly before the conclusion of the auction, Bidder B will retract his $350 bid. Since he and Bidder A are in communication with each other, Bidder A will know the exact moment that the high bid is canceled. He will then raise his bid just above the highest one, if any, so that he is now the highest bidder.
Our dishonest pair hopes that no other sellers notice this last minute retraction and place bids. If an honest bid is placed, they can afford to top them because they still have lots of financial room to play with. After all, even if the bidding rises to $150, they can still double their money on a $300 doll.
The result: the dishonest bidders won the doll at a fraction of its value. The shell-shocked seller is left in a daze, wondering what happened to her glittering auction profits.
In a variation on this practice, Bidder B may allow the auction to expire with his bid of $350. When the seller contacts him for payment, he will ignore her requests until she gives up and realizes she is never going to get her money.
eBay has a "Second Chance" program. In the event that a buyer doesn't live up to his obligations, the seller can offer the item to the second highest bid - which belongs to Bidder A and is artificially low.
If an honest seller sees this kind of pattern in one of her auctions, she can recognize the possibility of some dishonesty going on and take steps to verify the extraordinarily large bid. Sometimes such a high bid is totally legitimate because it is from a collector who is determined to own the item for sale.
Fortunately, shill bidding deal is relatively easy to detect and it isn't common anymore. At one time it was much easier to pull off this kind of fraud than it is now. Any seller who has a question, however, should feel totally justified in contacting the high bidder and asking some tough questions. Without satisfactory answers, it is certainly wise and prudent to contact the Bay and discuss the situation. In this way, no seller will never be ripped off by dishonest shill bidders.
About the author:
Learn how to sell on eBay with 16 hours of online instruction taught by a 10 year eBay veteran. Own an eBay business instead of an eBay hobby.
Source: Article Directory
6 Steps To Adsense Domination
Copyright 2005 Keith BaxterWhen you make your living online, you realize the need for multiple streams of income.One of the easiest and most lucrative ways to generate a secondary income, which also happens to be passive, is via Googleís Adsense program.Iím sure youíve read the claims of a few individuals generating five figure monthly incomes from Adsense. For many of you, Iím sure you are wondering why you arenít making this same income yourself.Well, wonder no more. If you follow my simple six step system, you will be well on your way to healthy Adsense profits within three...
How Non-technical Webmasters Are Harnessing The Power Of Rss...
Copyright 2005 Ron HuttonThe opportunity to quickly and easily implement and harness the power of RSS is quite real and...
Make Money Blogging
You have created a blog and your blog is dedicated to a niche industry. Have you ever thought that the blog could make money for you? We would look here in th...
|Adsense - How To Write Ebay Auction Descriptions That Get Bids|
The first thing you need to do is write an auction title.This is the most important part of your auction. If your title doesn't interest anyone no-one will read your ad.You could have written the most compelling auction description ever written. But unless anyone reads it you'll get no sales.All professional ad writers agree that the title is 9x more important than the ad itself. Before you read a newspaper article, what's the first thing you read?That's right. The headlines. Only when a headline interests you will you attempt to read the actual article.The most effective way of coming up with the best titleThe best way is follow the...
|Adsense - Google Adsense|
here's an all about Google letter. It didn't start out that way, but when my fingers got typing that's what flowed out of them.My brain could have had something to do with it too. But not a lot. It's still quite muddled from being ill.Hope you f...
|Adsense - The Basics Of Making Money With Blogs And Adsense|
Copyright 2005 Mal KeenanGoogle AdSense is undoubtedly the most popular Pay Per Click (PPC) program in the industry today. By enrolling your site under the said program, AdSense will display a series of ads on your pages. You stand to earn every time a visitor of your clicks on these ads.They donít have to buy anything, mind you. They just have to click on the ads and nothing more. These ads are by no means random. They are contextually relevant, meaning, they are assigned based on their relevancy to the subject of your site.Could a blog substitute for regular sites when it comes to making money through AdSense? Yes people, blogs can a...
|Adsense - The Basics Of Blogging To Niche Markets|
Copyright 2005 Mal KeenanIn the previous article, we discussed how blogs can help you generate traffic for your main website. But what if you donít have another site? Or what if you want your blog to be your main website, the exclusive carrier of your moneymaking ventures?...
|Adsense - Blogging For Dollars|
Copyright 2004 Sharon HousleyBlogging for dollars might sound like the latest game show or some new drinking game, but it's the latest craze to hit the Internet. Bloggers began blogging for a number of reasons, but as the blog movement has increased in popularity, they have found ways to monetize their blogs and are seeing their commitment pay off. Whether a blogger's...
|Adsense - Easy Steps To Hands Off Passive Income|
Copyright 2005 MHG ConsultingSo you want to increase your Adsense income? Log into your Adsense account,†and look at your last month's stats. There are three key areas that contribute to†your earnings: Impressions, Clickthroughs and Effective CPM. Improving your stats in any, or preferably, all of these three key areas will increase your Adsense earnings.†Impressions†Impressions are the number of times your webpages with Adsense ads have been viewed. Yo...
|Adsense - When Is 'spying On Your Competition' A Complete Waste Of Time?|
Copyright 2005 Ron Hutton Your brain screams "Gimme Fast", "Gimme Easy", "Do it for me automatically"! So when you see the headline that reads... "Imagine Spying On Your Competition To Build A Massive Targeted Keyword List Of 3000 Or More Keywords On Auto-Pilot... In 10 Minutes Or Less And Skyrocket Your Adsense Profits Quickly And Easily" You think "Hmmmm. Sounds good. Looks intriguing..." "Never Build Another Keyword List The Slow And Hard Way!" Gosh. Is it possible? "You must understand that this is a numbers game." O.K. Now tell me something not quite so obvious. The above headlines and subheadlines are quoted directly from a sales letter for a relatively new piece of software (no names will be mentioned here) that's in...
|Adsense - Google Adsense And Blogs|
If you have a blog, or are thinking about starting a blog, then you are definitely going to want to read this article. Itís all about how to line your pockets with money thatís just waiting to be made without working much harder than you already are.No only are blogs the hottest thing on the Ďnet right now, but they are custom-made for Googleís...
|Adsense - 9 Reasons To Do Joint Venture Deals On Ebay|
eBay is THE most popular home business in the USA, but it's not without its problems. Many have tried to succeed but have failed due to confusion over what products to sell, giant numbers of competitors, copy and picture theft from other sellers and eBay and Paypal that eat into profits.One way to avoid this swamp, though, is to do a Joint Venture with established eBay se...
|Adsense - Is Your Site A One Trick Pony?|
Copyright 2004 John GergyeDonít know about you but I really look forward to watching The Apprentice on TV each week. Because it almost always offers a lesson in online marketing.Take the recent episode where the two teams were charged by The Donald with making money any way they could selling services to dog owners. Drama aside, the team that lost was a so called "one trick pony". They pinned their success on one thing - dog washing. A good idea but not quite good enough. Because the winning team not only offered dog washing but dog massage plus nail clipping too. I donít think itís a coincidence that by offering a variety of services they earned three times as much. Income diversification is also a winning strategy online....
|Adsense - |