Shill Bidding
Published June 8th, 2006
Shill bidding happens when a seller (or accomplice) bids on his or her own auctions – with the intent of driving up the price. For example, a seller might have two eBay ID’s and use one of them to bid. They might also convince a friend, family member or co-worker to bid on an item with no intention of buying it. Shill bidding can be tempting when lots of people are watching an item but no one’s bidding – just one false bid to get things rolling – or when bidding is slow and it looks like an item will sell for a lot less than the seller thinks it’s worth.
Shill bidding is a little more difficult to detect in a competitors listings – but is still something you should look for. Review your competitors “closed†auctions. Review the last 30 days of completed listings and look at the buyers/bidders. More specifically, look to see what the feedback score is for these buyers/bidders.
Do you notice a pattern? Can you see a trend? Does the same user ID purchase multiple items from the seller (for an item that would have no need for multiple purchases)? When did these users registers? If shill bidding is happening, many of the “bidder†accounts will have recent eBay registration dates.
Shill bidding happens with new sellers who think “what’s the harm in increasing the price just a little - no one will know.” Shill bidding also happens with experience, high level sellers. Recently two top jewelry sellers were warned and had their accounts suspended by eBay for shill bidding…they were bidding on each others’ auctions.
Shill bidding is illegal, and is another policy violation that eBay takes very seriously. eBay has very sophisticated tools and technology to track shill bidding. If you believe there is shill bidding activity going on within a sellers account, report it to eBay and they will begin an investagation.
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