eBay came up with an elaborate system of auctions meant to be as productive and as fair as possible. Here’s how eBay ensures that its auctions are conducted fairly for both buyers and sellers:Here’s how eBay ensures that its auctions are conducted fairly for both buyers and sellers:

Bid Irrevocability: Any bid made with eBay cannot be withdrawn once it has been placed. This rule is particularly important because it precludes bidders from merely placing bids which they may not be in a position to finance and it also serves to protect the credibility of the auction. It avoids time where a bidder may pull out of the auction due to change of mind, which is so inconsonant with the preparation of the auction process and fairness to other bidders.

Transparency: To further the argument eBay offers full transparency in the bidding history of each auction. All bids are open to the other bidders and this enables them to see the degree of competition and the current highest bid. This creates awareness to the buyers to know when to bid higher or to drop out of the bidding process. It also eliminates cases of bid shading or any other act that may be used to influence the auction process since all the sellers have equal access to details.

Automatic Bidding: In order to refrain from causing a congested bidding interface, eBay provides an option for automatic bidding. The tool allows a buyer to specify up to which price range they are willing to bid – up to entered value, eBay will increment bids automatically. This means that the buyers do not have to be connected to the internet during the auctioning taking place. Automatic bidding discourages low bidding by the use of a tactic known as ‘sniping whereby you place your bid at the last minutes before the bidding closes thus eliminating misuse of the system.

Through these mechanisms, eBay establishes a fair play that has both the buyers and sellers interesting in doing business with the company.