How to Create and Manage Product Auctions

Product auctions allow you to sell electrical equipment through a competitive bidding process where buyers place bids over a set time period. The highest bidder at the end of the auction wins the right to purchase the equipment at their bid price.

Auctions work particularly well for unique, high-value, or hard-to-price electrical equipment like surplus transformers, rare vintage switchgear, or liquidation inventory where market value is uncertain.

This guide walks you through creating an auction, monitoring bids in real-time, and finalizing the sale with the winning bidder.

Who This Is For

This guide is for Electrical Trader sellers who want to:

Sell equipment through a bidding process
Maximize value on unique or rare items
Create urgency and competition among buyers
Set reserve prices to protect minimum values
Monitor and manage active auctions

Before You Start

Requirements

Before creating an auction, you must have:

Product already created - Auction is added to existing product
Product photos uploaded - Buyers need to see what they're bidding on
Detailed description - More detail = more confident bidders
Technical specifications - Complete nameplate data

Information You'll Need

Gather this before starting:

Auction Timing:

Start date and time
End date and time
Duration (typically 3-10 days)

Pricing:

Base price (starting bid amount)
Reserve price (minimum you'll accept)
Bidding increment rules (optional)

Strategy:

Whether to allow automatic bidding (proxy bids)
Whether to hide bidder identities

1Access Product Auctions

Navigate to Your Products

Go to Products > Products Listing

Open Product Action Menu

Locate the product you want to auction and click the three-dot menu (•••) in the Action column.

2View Existing Auctions (If Any)

After clicking "Create Auction", you'll be taken to the Auctions List page.

3Create a New Auction

Click the "+ ADD AUCTION" button (teal, top right)

The form has multiple sections. Let's go through each one.

Section 1: Auction Duration

From Date and Time

Tips:

Give yourself time to review the listing before it goes live
Don't start immediately - give buyers time to discover it
Consider time zones (US electrical industry is nationwide)
Start on a weekday (Monday-Wednesday) for maximum visibility

To Date and Time

Tips:

Typical auction length: 3-10 days
Shorter auctions (3-5 days) create urgency
Longer auctions (7-10 days) allow wider exposure
End on weekday evening (Tuesday-Thursday) for max participation
Avoid holiday weekends
Time zones matter - 8 PM Eastern = 5 PM Pacific

Recommended durations:

Small components (<$1,000): 3-5 days
Medium equipment ($1,000-$10,000): 5-7 days
Large equipment (>$10,000): 7-10 days
Rare/unique items: 10+ days

Section 2: Pricing

Base Price

This is the starting bid amount - the minimum first bid.

What it means:

The opening bid amount
Where bidding starts
Must be low enough to attract bids
But not so low you give away value

Strategy 1: Low Base, High Reserve

Base Price: $100 (low barrier to entry)
Reserve Price: $5,000 (protected minimum)
Encourages early bidding and excitement
Reserve protects your bottom line

Strategy 2: Realistic Base, No Reserve

Base Price: $4,000 (realistic market value)
Reserve Price: $5,000 (just slightly higher)
Fewer but more serious bidders
Less drama, more straightforward

Tips:

Set base 20-50% below expected final price
Lower base = more bidding activity
Higher base = more serious bidders only
Consider starting at 1/3 of reserve price

Reserve Price

This is your minimum acceptable price - what you must get to sell.

What it means:

The minimum price you'll accept
Hidden from bidders (they don't see this number)
If highest bid doesn't reach reserve, you're not obligated to sell
Protects you from selling too low

Note:

Base Price - From this you can set your Product's base price, from the price where bidding will start.

Reserve Price - This is target auction bidding price, where your product bidding should be reached.

Calculate your bottom line:

What you paid for the equipment
Minus: Storage and maintenance costs
Minus: 10% commission on sale price (shipping excluded)
Equals: Your minimum acceptable amount

Example calculation:

Equipment value: $10,000
Minus 10% commission: -$1,000
Your net: $9,000
Set reserve: $10,000 (to net $9,000 after commission)
Tip: If you need to net $10,000, set your reserve at $11,112 — 10% commission on that equals $1,111, leaving you $10,001.

Tips:

Set reserve at your true minimum
Don't set reserve too high (kills bidding momentum)
Reserve should be 10-20% below fair market value
You can always decline to sell if reserve isn't met
Be honest with yourself about minimum value

Section 3: Bidding Increment Rules

Setting Increment Rules

Purpose:

Forces minimum bid increases
Prevents tiny incremental bids ($1 increases on $10,000 equipment)
Keeps auction moving toward conclusion
Creates meaningful competition

Increment Rules Best Practices

Item Value	Increment Structure
Low-value (<$2,000)	$0-$500: $25 increments $500-$2,000: $50 increments
Medium-value ($2,000-$10,000)	$0-$1,000: $50 increments $1,000-$5,000: $100 increments $5,000-$10,000: $250 increments
High-value (>$10,000)	$0-$5,000: $100 increments $5,000-$10,000: $250 increments $10,000-$50,000: $500 increments $50,000+: $1,000 increments

Tips:

Start with smaller increments (encourages early bidding)
Increase increments as price rises (speeds up conclusion)
Don't make increments too large (discourages participation)
Don't make increments too small (auction drags on)

Note:

Bid rule must start with 0. If there is no rule defined for any particular Bid, then nearest increment rule will be taken.

Important: Your first rule must start FROM $0

Section 4: Auction Settings

What is Auction Joining Fee?

Electrical Trader's marketplace have an Auction Joining Fee feature enabled. This requires buyers to pay an entry fee before they can bid on auctions.

How you're affected as a seller:

If joining fee is enabled, you'll see additional fields when creating auctions
The joining fee amount and rules are set by marketplace administrators
You configure how winners complete their purchase (booking amount vs. full payment)
You can optionally offer a "Buy Now" instant purchase option

If you don't see these fields, joining fee is not enabled on the marketplace.

When Joining Fee is enabled, you'll see the "Auction Setting" section:

1. Booking Amount Payable for Winner

What it is: A deposit or payment that the auction winner must make to secure their purchase.

Two options available:

Booking Amount: You set a specific dollar amount (e.g., $1,000 deposit)
Bidding Amount: Winner must pay their full winning bid amount immediately

Note: The option to choose between these is set by marketplace administrators. You may see one or both options depending on your marketplace configuration.

How the booking/payment process works:

Auction ends and winner is declared
Winner has limited time to pay booking/bidding amount (typically 24-72 hours)
If winner pays: They proceed to complete full purchase
If winner doesn't pay: Second-highest bidder automatically becomes winner
Process repeats down the bidder list until someone pays
If no one pays above reserve price, auction fails

2. Buy Now Price

What it is: An optional instant-purchase price. Any bidder who has paid the joining fee can click "Buy Now," pay this price immediately, and win the auction on the spot.

How it works:

You set a fixed "Buy Now" price when creating the auction
Only bidders who paid joining fee see the "Buy Now" button
If someone clicks it and pays, they immediately win
Auction ends instantly - no more bids accepted
That buyer becomes the winner at the Buy Now price

Important: Buy Now is optional

You don't have to offer a Buy Now option. Leave this field blank or enter $0 if you want bidding only.

Setting your Buy Now price strategically:

Buy Now price should be:

Higher than reserve price: Otherwise, why auction it?
At or above fair market value: Reasonable instant-purchase price
110-125% of expected final bid: Premium for immediate sale
Attractive to eager buyers: Not so high it's ignored

Offer Buy Now when:

Equipment has clear market value
You'd accept immediate sale at premium
Common/standard equipment type
Want option for fast completion
Targeting time-sensitive buyers

Skip Buy Now when:

Rare or unique equipment
Uncertain market value
Want to see maximum bidding
Running short auction (let it play out)
First time selling this equipment type

3. Number of Days Prior to Which Customer Can Join Auction

What it is: The deadline for new bidders to pay the joining fee and enter your auction.

How it works:

If you enter "3": Joining window closes 3 days before auction ends
If you enter "0": Bidders can join right up until auction closes
If you enter "7": Joining closes a full week before end

After the joining deadline: No new bidders can enter, but existing bidders continue competing.

Why control the joining window?

Ensures inspection time: Serious bidders have time to view equipment
Prevents last-second entries: All participants are committed and informed
Encourages early action: Bidders can't procrastinate
Reduces chaos at close: Final hours are pure competitive bidding
Professional auction practice: Mimics traditional auction houses

Section 5: Proxy Bidding (Automatic Bidding)

What is Proxy Bidding?

Without proxy bidding (OFF):

Buyer manually enters each bid
Buyer must return to site to bid again if outbid
Creates authentic auction excitement
More engagement but less convenient

With proxy bidding (ON):

Buyer enters their maximum bid once
System automatically bids on their behalf
Increases bid only when outbid by others
Bids up to (but not exceeding) their maximum
More convenient but less exciting

Should You Enable Proxy Bidding?

Enable proxy bidding (ON) when:

Selling to busy professionals
Want to maximize final price
Auction runs during business hours
Selling high-value equipment ($5,000+)
Standard industry practice

Disable proxy bidding (OFF) when:

Want more authentic "live auction" feel
Selling lower-value items (<$2,000)
Want maximum engagement and excitement
Shorter auction duration (3-5 days)
Prefer traditional bidding only

Recommendation for electrical equipment:

Enable proxy bidding - Most electrical equipment buyers are busy facility managers, engineers, or contractors who appreciate the convenience.

Complete the Auction Setup

After filling all sections:

Review all settings carefully
Scroll to bottom of page
Click SAVE or SAVE & START button

4View Your Active Auction

After saving, you'll return to the Auctions List page.

Auction Action Menu

Click the three-dot menu (•••) to see options:

🔄 Stop Manually - End auction before scheduled end time
✏️ Edit Auction - Modify auction settings (only before bids placed)

5Monitor Your Auction

View Auction Details

Click "View Auction" to see full auction details.

6Buyer Experience (What Buyers See)

This is what buyers see when viewing a product currently auctioned:

7Monitor and Respond

Check Auction Progress Regularly

Daily monitoring:

Morning: Check overnight activity
Midday: Review lunch-hour bidding
Evening: Monitor end-of-day activity
Final hours: Watch closely for last-minute bidding

Key Metrics to Watch

Bidding activity:
Number of unique bidders
Total number of bids
Bid frequency (active vs slow)
Current high bid vs reserve price

Traffic indicators:
Page views on product listing
Time on page
Watchers/favorites

Red Flags

No bids after 24-48 hours:

Base price may be too high
Photos may be inadequate
Description may be unclear
Equipment may not be desirable
Consider editing auction (if no bids yet)

Bidding stalled below reserve:

Reserve may be too high
Market value lower than expected
Consider lowering reserve (if possible)

Single bidder only:

May indicate lack of interest
Or one serious buyer
Consider longer auction duration next time

8When Auction Ends

When the countdown reaches zero, auction status changes from "Running" (green badge) → "Finished" (red badge). The Winner Details also appears

Winner Status:

"Approved" (green) - Winner confirmed, can proceed to purchase

Purchase Status:

"Not Purchased" (gray) - Winner hasn't completed checkout yet
"Purchased" (green) - Winner has completed payment

9Finalize the Sale

Winner Receives Email Notification

Winner Completes Purchase

The winner must:

Click "Buy Now" button in email
Complete checkout process at winning bid price
Pay via their preferred payment method
Arrange shipping/pickup

Your Next Steps as Seller

When winner completes purchase:

1. You receive order notification

Order appears in your Orders section
Includes buyer's contact information
Shows winning bid amount

2. Contact the buyer

Confirm purchase
Arrange equipment inspection (if needed)
Coordinate pickup or shipping
Provide disconnection timeline

3. Prepare equipment

Disconnect from service
Prepare for removal
Gather documentation (test results, manuals, etc.)
Coordinate with buyer's freight company

4. Complete delivery

Facilitate pickup
Provide loading assistance if arranged
Release equipment to buyer or freight carrier
Retain proof of delivery

5. Receive payment

Payment processed through Electrical Trader
Deposited to your payment method
Review transaction in earnings report

If Reserve Price Not Met

If the auction ends without reaching your reserve price:

You're not obligated to sell.

Your options:

Decline the sale - Auction ends with no winner, you keep the equipment, relist with different pricing
Contact high bidder - Negotiate directly, may agree to sell below reserve, complete sale outside auction system
Create new auction - Lower reserve price, better photos/description, different timing or duration

Best Practices for Successful Auctions

Before Creating Auction

Prepare your listing:

10 high-quality photos
Detailed technical description
Complete specifications
Recent test results
Condition disclosure
Clear equipment location

Research market:

Check completed auctions for similar equipment
Review current listings prices
Understand seasonal demand
Know your absolute minimum price

Setting Up Auction

Pricing strategy:
Start base price low (40-60% of reserve)
Set reserve at your true minimum
Use increment rules to keep bids meaningful
Consider market conditions

Timing strategy:
Start on Monday-Wednesday morning
Run 5-7 days for most equipment
End on weekday evening (6-9 PM)
Avoid major holidays

Settings:
Enable proxy bidding (recommended)
Consider bidder privacy (hide identities on high-value items)
Set reasonable increment rules
Double-check all dates/times

During Auction

Active management:

Check status 2-3 times daily
Respond to buyer questions within 2 hours
Provide additional photos if requested
Monitor competitor listings
Don't change pricing after bids start
Watch for suspicious bidding patterns

Communication:

Answer technical questions thoroughly
Offer inspection opportunities
Provide freight coordination assistance
Be transparent about equipment condition
Build buyer confidence

After Auction Ends

Quick follow-up:

Contact winner within 24 hours
Confirm purchase and next steps
Arrange inspection if needed
Coordinate logistics
Provide payment/delivery timeline

Professional service:

Fulfill commitments promptly
Prepare equipment carefully
Document condition at handoff
Assist with loading/shipping
Provide all documentation

Common Questions

Can I edit an auction after it starts?

Before any bids: Yes, click "Edit Auction" from action menu

After bids placed: No, to protect bidder confidence

After auction ends: No

Best practice: Review carefully before starting

Can I cancel an auction early?

Yes, using "Stop Manually" option.

When to use: Equipment no longer available, major error in listing, safety or legal issue discovered

Consequences: Frustrates bidders, damages seller reputation, may result in complaints

Recommendation: Only cancel for serious reasons, not because you're unhappy with bid levels.

What if reserve price isn't met?

You're not required to sell.

Options:

Let auction end with no sale
Contact high bidder to negotiate
Create new auction with lower reserve
Switch to fixed-price listing

Best practice: Set realistic reserve prices to avoid this situation.

Can I have multiple auctions on one product?

No, only one auction can run at a time per product.

To run another auction:

Wait for current auction to finish
Create new auction with new settings

What happens if winner doesn't pay?

Winner has obligation to complete purchase.

If winner doesn't pay:

Contact them to resolve
Set deadline for payment (3-7 days)
If no response, report to Electrical Trader support
Consider offering to second-place bidder
Relist equipment

Prevention: Clear terms in description, require immediate payment, communicate promptly with winner

Can buyers inspect before bidding?

Yes, highly recommended for high-value equipment.

Best practices:

State inspection availability in description
Provide equipment location
Set inspection hours/days
Require appointment scheduling
Escort visitors for safety
Document all inspections

Should I accept proxy bids via phone/email?

Not recommended.

Use the platform: Keeps bidding transparent, protects all parties, creates audit trail, prevents disputes

If buyer insists: Direct them to online bidding, explain proxy bidding feature, offer to walk them through process

Need Help?

Seller Support

Email: support@electricaltrader.com

Response Time: Within 24-48 hours

Hours: Monday-Friday, 9am-6pm EST