When you place a bid, you enter the maximum amount you're willing to pay for the item. The seller and other bidders dont know your maximum bid.
Well place bids on your behalf using the automatic bid increment amount, which is based on the current high bid. We'll bid only as much as necessary to make sure that you remain the high bidder, or to meet the reserve price, up to your maximum amount.
If another bidder places the same maximum bid or higher, well notify you so you can place another bid. Your maximum bid is kept confidential until it is exceeded by another bidder.
Example The current bid for an item is $10.00. Tom is the high bidder, and has placed a maximum bid of $12.00 on the item. His maximum bid is kept confidential from other members.
Laura views the item and places a maximum bid of $15.00. Laura becomes the high bidder.
Toms bid is incremented to his maximum of $12.00. Lauras bid is now $12.50.
We send Tom an email that he has been outbid. If he doesnt raise his maximum bid, Laura wins the item.
The fine print In reserve price auctions, if your maximum bid is at least the reserve price, well automatically increase your bid to meet the reserve, and bidding will continue from there.