eBay Snipe Bidding 101:
ABSOLUTELY THE BEST & FREE:
https://www.myibidder.com/
My iBidder integrates directly with eBay and shows up on your watch screen. You can snipe anything on your watch list or anything that you want to add. If you have an iPhone or iPad, there is an app to use so you can set your snipe from anywhere... There is a one time charge for the iPhone app, but otherwise it's free to use on your computer.
Just choose what item you want to bid on, decide what your maximum bid would be (pick a realistic bid and you will be more successful - most good items don't go dirt cheap, so bid what you would pay if you found it for sale somewhere today) and set your snipe time - I use 3 seconds. Then forget about it - you either get it or you don't.
You have to remember that eBay is not a true auction, since it has an ending time, so only the highest bid placed before the end wins the item. A proxy bid is pure stupidity, since there are a number of new bidders who think that by tapping up the bid a few dollars that they will ultimately win it and that just drives the prices up to sometimes very unrealistic highs because of the perceived competition.
I use a crazy "formula". If I see an item that I think is worth $100, but the current bid is only $20 with a few hours left, I am not going to bid $21 or $25. I am going to bid what I would perceive the price to be as a bargain - for example: if it is truly worth $100, then $75 is a good deal. Then, I am not going to bid $75.00 even, I am going to add $3.99 to that final bid, because I would hate to lose it to someone who bid $76 or even $77.57.
So, I am going to bid $78.99 ($75 + $3.99). Then, if I have to pay that much, I am happy... if I get it for $50, I am happier still (remember you do not pay your high bid price, unless someone else bids the same or nearly the same amount). If I lose it to someone for $80, I am OK, since I think it's not that good of a deal at $80 anyway...
Example: Ultimately, if someone places a $500 proxy bid on a $75 item days in advance, they will most likely win the item, but usually at an excessive price, where if they would have waited until 3 seconds to place the $500 bid, they would win it at the lowest possible price, IF no one placed a bid higher than $500 at the end.
So, all of this comes with a caveat: DO NOT PLACE A PROXY BID OR A SNIPE BID FOR MORE THAN YOU ARE WILLING AND ABLE TO PAY. This is a gamble and there may be another crazy person out there who will bid $500 for a $75 item and if you are the first to place that $500 bid, you will be stuck with it for that price if another $500 bid comes in later, even though the item was not worth that much.
Now that I have given away my eBay bidding secrets, I will probably have to quit buying, which is like breaking a crack addiction, anyway - so thanks for helping me on my way to recovery.