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Online Auction Joining Fee

Updated 24 July 2023

More than 70,000 complaints of online auction fraud are made each year to the Internet Crime Complaint Center (IC3), and auction scams account for around one in every four complaints.

One of the most occurring auction offenses is Multiple Bidding Auction Fraud. In such offenses, a bidder places multiple bids on an auction product which includes a bid of a higher amount to scare the other bidders. At the last minute, the fraud bidder withdraws his highest bid. As a result, the auction ends up closing for one of the low bids made by the other bidders.
Ultimately, the seller gets a bitter price for the product which would not be the case if the auction was legitimate.

Now the video tutorial is available on Youtube as well as here.


Multiple bidding auction fraud involves a bidder placing various bids on an auction product using different identities. This kind of auction fraud is the opposite of Shill Bidding. In Shill Bidding, the fraud is caused by the seller pushing the price higher through fake bids using fake identities, multiple bidding is an attempt to drive the price lower with fake bids.

Create an online auction website

If you are looking forward to opening an online auction website then making the auction process legitimate in your store is a crucial step.

Auction Joining Fee

The best way to achieve this is by introducing the concept of Auction Joining Fee. What this will do is, whenever a bidder wants to bid on the auction product, he/she first needs to pay the auction joining fee set by the Seller. So, only legitimate and interested bidders will bid after paying.

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Ultimately, fake biddings will stop on your store and your product will be sold on the best price.

There is one more thing to auction joining fee which the Merchants can benefit from. Merchants can put their overstocked or slow going products up for auction at lower prices. Since something is better than nothing, they’ll earn something from those products rather than just letting them rust in the warehouse.

Moreover, if a product (actual worth= $50) is up on auction for $20 with a joining fee of $5. Then, even if 10 bidders join the auction, the Merchant will already receive the actual worth of the product.

So, make sure to add a joining fee feature on your Online Auction Website to save yourself from fraud bidders!

Don’t have an Online Auction Website but want to build one?

Check out: How to create an online auction website?


If you have suggestions to make something better, do let us know.

Furthermore, in case of any query, create a ticket at Webkul UV Desk.


Until next time. 👋

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