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Auction Terminology

A glossary to help you understand auction terminology

Whether you're bidding online for the first time or managing complex consignment sales, this glossary helps clarify common terms and phrases used throughout the HiBid, as well as across the auction industry as a whole.


Participants & Roles

Term

Definition

Auctioneer

The individual or company licensed to sell items at auction, responsible for managing bids and finalizing sales.

Consignor

The person or business submitting items to be sold in an auction.

Consignee

The auction house or entity that takes possession of the item for sale on behalf of the consignor.

Bidder

A person placing offers to purchase items in the auction.

Buyer

The winning bidder of an item once the auction concludes.

Clerk

The individual responsible for recording bids and final sale amounts during a live or webcast auction.

Ringman (Bid Spotter)

Assists the auctioneer in spotting bids during a live auction.


Auction Formats

Term

Definition

Absolute Auction

An auction with no reserve price—items are sold to the highest bidder regardless of price.

Reserve Auction

A minimum price (reserve) must be met for the item to be sold.

Online-Only Auction

All bidding occurs online, without a live or webcast component.

Webcast Auction

A live auction broadcast online in real-time where online and in-person bidders can participate.

Timed Auction

A type of online-only auction where bidding opens and closes at scheduled times.

Sealed Bid Auction

All bids are confidential and submitted without visibility into other participants’ offers.


Bidding Types & Terms

Term

Definition

Absentee Bid

A maximum bid placed before the auction begins. The system or auctioneer bids on your behalf up to your max.

Progressive Bidding

Each new bid must exceed the previous by a set increment. Common in online and in-person auctions.

Times-the-Money

The bid amount is multiplied by the quantity in the lot. Example: $20 bid × 5 items = $100 total.

Bid Increments

Predefined steps by which a new bid must exceed the current high bid.

Sniping

Placing a bid at the last possible moment to outbid competitors, typically in timed auctions. This normally occurs on eBay. HiBid is a true "progressive" auction where the end time will extend until no more bids are placed. The benefit is that the bidder who wants the item the most wins.

Soft Close

If a bid is placed within the final seconds of a timed auction, the end time is extended (to prevent sniping).


Common Terms & Tools

Term

Definition

Lot

An item up for sale by the auctioneer.

Lot Number

A unique identifier assigned to each lot.

Catalog

The complete list of items/lots in an event.

Buyer’s Premium

A fee added to the hammer price (winning bid), usually a percentage.

Hammer Price

The final bid amount before any fees (e.g., buyer’s premium or tax).

Condition Report

An assessment of an item’s physical condition, often provided for higher-value items.

As-Is, Where-Is

Items are sold without warranty and must be picked up or shipped from their current location. Anything related to auctioneer policy can be found in their Terms & Conditions.

Preview

A scheduled time for bidders to view items in person before the auction.


Settlement & Fees

Term

Definition

Final Invoice

The full summary of charges including hammer price, buyer’s premium, tax, shipping, and any additional fees.

Sales Tax

Tax applied to purchases, depending on local laws and buyer/seller locations.

Payment Terms

The window and acceptable methods of payment (e.g., credit card, wire, check).

Default

Failure to complete payment or pickup, which may result in cancellation and account suspension.


Shipping & Pickup

Term

Definition

FOB (Freight on Board)

Indicates the point at which ownership and shipping responsibility transfer to the buyer.

Third-Party Shipping

Many auction houses use external companies for packaging and delivery.

Local Pickup Only

Buyer must retrieve the item from a specified location; no shipping offered.


Pro Tips

  • Always review terms and conditions for each auction—they can vary between auctioneers.

  • Monitor auction closing times closely, especially in timed or soft-close formats.

  • Ask for condition reports if not provided—especially on higher-value items.

  • Keep payment and shipping info up to date in your account to avoid delays.

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