If you have more than one of the same item to sell, you may list all items in a single auction, called a "Dutch" auction.
Individuals bid on the item and in the quantities they desire. At the close of the auction all "winning bidders" pay the amount of the lowest successful bid! The lowest successful bid is determined in two ways:
there are fewer item bids than items for sale: Everyone who bids
wins the quantity they bid upon at the lowest bid.
If there are fewer items available than bids on the items: The individuals with the highest aggregate bid values (e.g. bid price x the number of items bid upon by that individual) are ranked until the available quantity is satisfied. Those "winning bidders" pay the lowest successful bid. Remember, the key to a Dutch auction is determining which bidders get the most total dollars to the seller. That's why the high bid price, alone, is not determinative.
Example 1: Assume an individual is selling 10 motors in a Dutch auction at an opening price of $30.00, and he receives 15 bids of differing amounts. If the first 3 bids were for $32.00, the individuals bidding would be considered winners. Now suppose that of the remaining bidders, Bidder 1 bid $30.00 on 4 motors and the bidder after him (Bidder 2) bid $30.00 on 5 motors. Here's how it would shake out:
The first 3 bidders would receive their motors at $30.00 (the lowest winning price)
Bidder 1 gets his 4 motors before Bidder 2 because he bid the same price but came before Bidder 2
Bidder 2 could take the last 3 motors at $30.00 BUT since he bid for 5 motors, he has the right to refuse the purchase since his full quantity request cannot be fulfilled.
Example 2: Assume the same individual is selling 10 motors at an opening price of $30.00. If the first bidder bids $40.00 for 2 units, the second bidder bids $31.00 for 8 units and the third bidder bids $32.00 for 5 units. So, who is the winning bidder? Surprisingly, it is not bidder 1, even though he bid the highest dollar amount. In a Dutch auction, it's the highest aggregate bid value that wins. So the winners shake out like this:
Bidder 2 has an aggregate bid value of $248.00 (quantity of 8, bid of $31.00)
Bidder 3 has an aggregate bid value of $160.00 (quantity of 5, bid of $32.00)
Bidder 1 has an aggregate bid value of $ 80.00 (quantity of 2, bid of $40.00)
Bidder 2 will get all 8 items at $31.00, the lowest winning bid amount.
Bidder 3 has the option to get the remaining 2 items at $31.00, but can refuse since his full quantity request was not met.
Bidder 1 gets nothing because his aggregate bid was not "in the money."
You may NOT set a reserve price on a Dutch auction.
In order to post a Dutch auction, you must have at least 20 "Good" or "OK" ratings AND have been a member of the site for at least 10 days.
See Listing Fees
For this type of auction, you MAY NOT use the "InstaBuy" feature.