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View Full Version : What is a dutch auction?


sandge
05-22-2002, 12:32 PM
I have seen this on ebay and I know it's to do with selling things that there are more than one of. But I have no clue what this means or how it works. Can anyone enlighten me.

Thanks a lot. :)

sandra

BlackTigr
05-22-2002, 01:50 PM
A Dutch auction is where they are auctioning more than one of the same item at the same time. Usually they will tell you that they have...30 or something of the item, and then each of the items will go for the lowest bid price until all of them are gone.

--BT

sandge
05-22-2002, 07:41 PM
Thanks for the explanation, BlackTigr. :)

Originally posted by BlackTigr
then each of the items will go for the lowest bid price until all of them are gone.
--BT
That seems like the opposite way round to a normal auction. Does that mean there is an incentive for everyone to bid really low?

cheers
s

CarlyHardy
05-22-2002, 10:19 PM
I thought I posted a reply to this earlier....but its not here!

Dutch means you have a quantity of the same item....everyone bids and the items can sell for that price to as many buyers as you have items.
If the high bid is $10....everyone can pay $10. The high bidder is committed to the purchase....everyone else has the option...that's my understanding.


The advantage is....you save listing fees by doing a dutch auction instead of individual auctions.
carly

Sumafra
05-22-2002, 11:51 PM
Originally posted by CHClements
If the high bid is $10....everyone can pay $10. The high bidder is committed to the purchase....everyone else has the option...that's my understanding.
carly

The way I read this is that if you have 10 items, then the 10 top bidders will be winners at whatever price they bid as long as it's not lower than the minimum. If there are 10 bidders or less, then everyone is committed to the sale. If there are more than 10, then the 10 highest bidders are winners and committed to the sale.

Anyway, that's the way I read it.

CathyD
05-23-2002, 01:28 AM
I did some dutch auctions in December on a Christmas print and everyone bids at the minimum bid to begin with. I had some bidders that wanted to insure they got a print so they bid higher. The auction bids go up when you have more bids than items just like a single auction. I didn't have more bidders than items, so when the auction ended everyone paid the lowest bid, even the one that bid higher than the rest.
Cathy

sandge
05-23-2002, 06:04 PM
Thanks everyone for your replies. I think I understand now. :)

It seems to me that if everyone pays the lowest price, dutch auctions are better only where you have a good idea that demand will exceed supply.

So, if you have some prints to sell, can you list them as individual items or is that not allowed?

cheers :)
sandra

Sumafra
05-24-2002, 12:09 AM
Originally posted by sandrafletcher
It seems to me that if everyone pays the lowest price, dutch auctions are better only where you have a good idea that demand will exceed supply.

So, if you have some prints to sell, can you list them as individual items or is that not allowed?
sandra

I think the point is that you make your minimum bid the amount that you want to receive, and by having a dutch auction, you have only one listing to keep track of and to pay fees on, but you can have multiple sales. Quite an advantage I think.

CarlyHardy
05-24-2002, 12:52 AM
Sandra, you can sell prints one at a time, too.
carly

sandge
05-25-2002, 02:43 PM
Thank you for your replies. That helps a lot. :D