The current bid for an item is $10.00. Julie is the high bidder. (Julie has placed a maximum bid of $50.00 on this item, but her maximum bid is kept confidential from other users.)
Bill views this item and decides to place a maximum bid of $65.00. Bill becomes the high bidder because his bid is greater than Julie's bid.
A bid increment of $5.00 is added to Julie’s maximum bid of $50.00. That means that Bill’s current bid is now $55.00. Julie is sent an email that she has been outbid.
Example 2:
The current bid for an item is $10.00. Julie is the high bidder. (Julie has placed a maximum bid of $50.00 on this item, but her maximum bid is kept confidential from other users.)
Bill views this item and decides to place a maximum bid of $25.00. Julie remains the high bidder because her bid was greater than Bill's bid.
A bid increment of $5.00 is added to Bill's maximum bid of $25.00. That means that Julie’s current bid is now $30.00. Bill is immediately notified that he has been outbid and is not the high bidder.
If no other bids are placed, Julie wins the auction for $30.00.