Home Glossary What Is a Bid Increment?

What Is a Bid Increment?

Updated · 2 min read · by the GhostNode team

Definition

A bid increment is the minimum step by which a new bid must beat the current price. Most marketplaces use a table where the step grows with the price: on eBay in the US, for example, it is $1 between $25 and $99.99 and $10 between $500 and $999.99. With proxy bidding, the winner usually pays one increment above the second-highest maximum.

The bid increment is the step size of an auction. If a lot is at $40 and the increment is $1, the next bid must be at least $41. Increments keep bidding moving in sensible jumps and stop people from outbidding each other by a cent.

How increments work with proxy bidding

With proxy bidding you enter a maximum and the marketplace bids for you. It only bids what it must: the current price becomes one increment above the second-highest maximum, or the highest maximum if that is less.

Example on eBay (increment $1 in this range): you enter $80, the only other bidder's maximum is $62. The price shows $63, and you win at $63 if nobody else bids.

eBay's increment table (United States)

Current priceIncrement
$0.01 – $0.99$0.05
$1.00 – $4.99$0.25
$5.00 – $24.99$0.50
$25.00 – $99.99$1.00
$100.00 – $249.99$2.50
$250.00 – $499.99$5.00
$500.00 – $999.99$10.00
$1,000.00 – $2,499.99$25.00
$2,500.00 – $4,999.99$50.00
$5,000.00 and up$100.00

eBay UK uses a different table in pounds (£0.05 up to £100), with breaks at £1, £5, £15, £60, £150, £300, £600, £1,500 and £3,000.

Other marketplaces

  • ShopGoodwill adds the increment to the current price, not to the leader's maximum, so a winning bid can beat yours by less than one step.
  • HiBid auctions each set their own increment table; the auction shows it.
  • K-BID, Proxibid and AllSurplus increments are set per auction or shown on the listing.
  • BestBid has no proxy bidding: the next legal bid is exactly the current price plus the lot's increment.

Using increments to your advantage

  1. Bid odd amounts. Many people bid round numbers. A maximum of $101.37 beats a $100 maximum without waiting for a whole increment.
  2. Check the next step before a price break. At $99 on eBay a $1 step still applies; at $100 the step becomes $2.50.
  3. Remember the step in your budget. If you would pay $250 at most, the last bid you can survive is the one before the step that would take you over.

Frequently asked questions

Why did someone win with less than one increment over my bid?

On ShopGoodwill (and some other sites) the increment is added to the current price, not to the leader's hidden maximum, so the winning bid can beat yours by less than a full step. On eBay, a bid that exactly matches or only just beats another maximum can also win by less than the increment.

Does every HiBid auction use the same increments?

No. Each auction house sets its own increment table on HiBid, and K-BID, Proxibid and AllSurplus increments also vary by auction or are shown on each listing.

Sources

  1. eBay Help: Automatic bidding (increment table)
  2. eBay UK Help: Bidding increments
  3. ShopGoodwill help: why the winning bid won by less than an increment
  4. HiBid bidder terms (increments set per auction)
  5. Proxibid support: About auctions

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Keep reading

Proxy bidding

You enter the most you will pay and the marketplace bids for you, one increment at a time, only as much as needed to keep you in the lead.

Read the definition →

Starting bid

The lowest amount the first bid on an auction lot may be; bidding opens there and rises by increments.

Read the definition →

How to Set a Maximum Bid at an Online Auction (and Keep to It)

Set your maximum bid on any auction lot in five steps: value the item, subtract fees and shipping, add a safety margin, and keep to the number when bidding heats up.

Read →

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