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When you place a bid, you enter the maximum amount that you're willing to pay for the item. (You won't necessarily pay the amount of your maximum bid.) eBay compares your bid to those of other bidders, and increases your bid on your behalf using only as much of your bid as is necessary to maintain your high bid position.
eBay starts with the next bid increment until you’re the high bidder. A bid increment is a preset amount that a bid is raised each time the current bid is exceeded. Your maximum bid is kept confidential.
eBay will keep bidding for you until bidding reaches your maximum amount. If another bidder has placed a higher maximum bid or same bid before you did, we'll let you know that you've been outbid so that you can place another bid if you want. If you're the high bidder and no other bidder places a higher maximum bid by the end of the auction, you’ll win the item.
The current bid for an item is $10.00. Tom is the high bidder.
Tom has placed a maximum bid of $12.00 on this item, but his maximum bid is kept confidential from other eBay members.
Laura views this item, and decides to place a maximum bid of $15.00.
Laura becomes the high bidder because her bid is greater than Tom's bid.
A bid increment of $0.50 is added to Tom’s maximum bid of $12.00. That means that Laura’s current bid is now $12.50.
