Actually Lornholio and Amp34 this method does work........
Say you are selling a Sigma 120-400 lens....... for arguments sake...... at no reserve.....
Person A bids 99p and then person B bids £5.......
Subject to the ebay increases in bids, until A increases or C enters the auction B will be winning it at about £1.19 or so......(unless C bids under £5 in which case B will be the winning bidder)
So I come in as person C in this fictional scenario and I am thinking I'll go £485 max not a penny more so I enter £485.00
Now I will be winning at about £1.39 and as soon as people bid up to my maximum of £485 ebay will automatically outbid them (bit like a telephone bidder at an auction.) As soon as my limit is outbid then I am no longer winning........
My maximum bid is not revealed to the seller - otherwise he will could shill bid (get a mate to bid / another account etc) to £480 to force my hand.......
Sniping is popular, but I don't see why........... just enter your max price and be done...........
The automated bidding system is the problem. If everyone played by "the rules" and put their maximum bid in straight away it wouldn't be a problem. Problem is many don't, there are also many that get carried away and go "i'm almost winning, i'll stick a little more in..."
With the automated system you put in your maximum bid, ebay does the autobidding with the othe bidders and finishes at the max price (and for this argument you are the winning bidder at the moment) which is still lower than the max you put in. This point could happen days or even 20 seconds before the end of the auction, just enough (or plenty of) time for the competing bidders to up their max bids until they are once again winning. You then either lose the auction or add even more to your bid, ending up at best paying more for the item than you would have if sniping...
Example:
A bids max £30
B bids max £50
You bid max £100
A and B put in bids and ebay sticks the auction price at £31 with B currently winning
You then enter a day before and stick your max bid of £100 in, ebay does it's auto thing and you are leading at £51.
Bidder A decided he doesn't want to pay more (just to make it easier for us) but bidder B wants the item so increases his max bid to £80...auto ebay... you're winning at £81 still so he ups his bid to £120...
Auto ebay and he is then winning at £101. Now you either have to say "fair enough" and walk away, letting him win at £101 or you increase your max bet to £150...
Auto ebay... and you walk away having won the auction at £121...
Now if you sniped (either with a program or manually) you could very well have won the auction at £51 as Bidder B would think he was winning at £31 right up to the last second when your bid of over £50 goes in.
This is why I never understand why people bid days beforehand. As for those saying this doesn't happen at proper auction houses, well you're only half right. It can't happen fully like it because the automatic ebay bidding system is done in private not in the same room as the bidders, however there are plenty of auctions that have 2-3 people bidding from the start and then one or two new ones then putting in a bid just before the hammer goes down, these then start bidding against each other...