Stealth Shopping - Snipe or be Sniped
Now that you know how to locate potential bargains without much competition on eBay, you are ready to delve into the super-secret world of 'STEALTH SHOPPING'
Everyone is familiar with stealth airplanes. They sneak up on their objective, flying undetected by enemy radar until they suddenly swoop down and destroy their target. Stealth shopping is much the same way. You seek out your auction without drawing the attention of any competitors. Then - at the last second - you swoop in and 'steal it away'. This is commonly called sniping. Don't listen to those nay-sayers that will tell you that sniping doesn't work. It doesn't work for them, because they don't know what I'm about to tell you. I've have been successfully sniping auctions on eBay for quiet a while now, and I can testify to the fact that sniping works - when you do it right!
Before I give you my sniping secrets, I have to warn you that sniping may not be the best bidding strategy in all situations. Sometimes getting a bargain is not as important as winning the auction. An example would be a collectible you really "must have" for your collection. This is where your 'desire' for the item is greater than your need to get a bargain. When this is the case use the more conventional proxy bidding method, bid what you can afford, and monitor the auction closely.
Just what is sniping and how does it save you money?
Sniping is a bidding strategy used by many experienced eBay bidders. Simply stated sniping is bidding within the last minute or even seconds of an ending auction. Your objective is to be the last one to bid as the auction ends.
How does that save you money?
It prevents any competitors from seeing your bid and deciding to re-raise theirs, since by the time they see it the auction is closed. The results, in most cases, is that the price is not driven as high as it would have been had all bidders bid early on in the auction. Keep in mind that the highest bidder will always win. Its just safer to bid at the end when there is less chance of people pushing your bid up little by little.
Does Sniping always work?
Sniping works extremely well in cases where the auctions only have two or three bidders that are interested. However sniping doesn't always work. There are many factors that come into play that can foil your efforts. We will discuss those later and some special tools, and techniques I use to get around them. For now it's just important for you to understand the sniping concept and how it works.
Is Sniping ethical?
There are some on eBay that look down on sniping, as though it was somehow 'dishonest' or 'underhanded'. These people clearly don't understand the eBay auction concept. Placing bids during the last minutes or seconds of an auction does not conflict with any of eBay's rules and policies. There is certainly nothing dishonorable about playing within the rules to win an auction and save money. If you don't use the concept - you will lose many bargain auctions to those that do. If you want to join the ranks of the eBay super-bargain hunters elite, it's snipe - or be sniped.
There are some problems associated with sniping.
First, you must be online to bid when the auction closes. This may not be convenient if the bidding for that 'Gucci Handbag' you’ve been drooling over ends in the middle of the night or while you are at work.
Second, depending on your connection speed, your last second bid may be submitted too late. The auction might close before your bid reaches eBay.
Third, if there are two or more snipers are bidding on one item, you have completely lost your advantage. Since computers can perform difficult mathematical calculations quickly, the bid run-up in the last seconds of the auction will be the same. Fortunately, as little as 5% of eBay auctions are won via the sniping routine. However, the problem does occur much more often in auctions with a lot of interest and bids, which is why the smart bargain hunter seeks out auction listings with little competition.
The first two problems above can easily be overcome by using a 'sniping software program' designed to automatically enter your eBay bid in the last seconds of an auction. There are actually quite a few out there. Many are free, while some of the better programs have a small fee associated with them.
However, there are risks with respects to using sniping software. The main risk is giving over your eBay user name and password to a third party. Could this third party access your email account and worst of all your PayPal account? The best way to minimize this risk is to only use trusted third party snipers, such as GoofBay (owned by eBay)and Auction Sniper.
The only REAL way to use a Sniping Program
Occasionally you will receive an email informing you that the bidding on an auction listing has exceeded the maximum bid you entered into your sniping program. Many people defeat the purpose of using sniping software when they continually go back to the auction and enter a higher bid. This practice completely defeats their purposes for sniping. To be a successful sniper - determine and enter your maximum bid. Forget it!
You will be notified if you win or lose. When you are notified that an auction has exceeded your bid, and it will, delete the email and forget it. Never, never, never give in to the temptation to review the auction and your bid price. Don't second guess yourself. Trust the analytical processes you used when you determined that price - while you are level headed and not in competitive mode. If someone else is willing to pay more then that's how it is. You were always going to lose to them anyway - they didn’t 'steal' it from you. You have lost, move on, find another auction.
Pricing Your Snipe
Only you can determine how much you are willing to pay for an article. However there is a process that comes into play, sometimes subconsciously. Here is how I do it. I call it my - Head, Heart and Wallet technique.
Head
I use my head by searching "completed auctions" so I know exactly what others have been paying for a similar item, and form a good sense of exactly how much it will take to win the bid. The eBay market value, so to speak. I also get to see what the very lowest prices where on my item. Usually I will have a fairly good idea of what the item will cost me locally retail. If I don't, I find out. Knowing this information helps me form my high and low bid perameters.
Heart
How much do I WANT and item and how much do I NEED that item. The more I want or need an item the more I'm willing to pay for it. Now, as a super-bargain hunter, I need to focus that desire on obtaining a truly fantastic price. I try to think in terms of 'wouldn't it be great if I got that for less than wholesale' or '75% off retail' or some such other fantastic price point. My prior research of similar items sold on eBay tells me if these goals are practical or not.
Wallet
How much can I afford. Remember, that when the auction is over, and I have won, I am going to have to pay right away. Just like at the checkout counter of a department store. I can't wait till next payday to complete the auction. What I bid has to be within my means and my budget. As a bargain sleuth the real thrill for me is removing pennies from my wallet, not dollars.
The psychology behind working out your absolute maximum bid
I never feel guilty about losing an auction when I take the time to search my 'head, heart and wallet' to work out and bid my ABSOLUTE MAXIMUM PRICE, which is, for super bargain hunters usually lower than other bidders.
I know that I'm going to lose a lot more auctions than I win.
That’s where the psychology comes in. I'm not expecting to win every auction, but when I do win one I want it to be very satisfying - I want to brag about it!
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Contributor's Note
This intel is the third and final article in a series of three written from my experiences as a 'Super Bargain' hunter on eBay. My greatest pleasure would be that someone finds this information helpful.
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