What is Bid Decrement?
Source:     Author: Tactica    Publish time: 2022-05-13 12:51    4567 Views

In Reverse Auction, there is normally a Bid Decrement policy. Bid Decrement is the MINIMUM difference between the bidder's new bidding price and previous bidding price. The bidder can always lower their bids by larger amount if desired. The Bid Decrement policy can be applied to bidder’s own bid or applied to the current best bid.
If the Bid Decrement is too small, the auction event may become very long as the bidding price will drop very slowly. If too large, there may be savings left on the table. According to our best practice, the bid decrement is generally between 0.25% and 0.5% of the historical price or market price. For example, if the market price of item A is $1000, the bid decrement amount is between $1000 *0.25% and $1000 *0.5%, i.e $2.5 to $5. You can select a user-friendly value within this range.