Shill Bidding is a term you may not be familiar with if your new to eBay. Mostly used by newer eBayers who think they will not be caught, Shill Bidding is the term used when you bid on your own item - against other genuine bidders to increase the end auction price.

Simply by creating a second eBay identity in a different address you can easily bid on your own item with no questions asked. You can push the price higher and create the impression there's a lot more interest in your item.

So, why does eBay and other auction sites frown so highly on shill bidding?

Well firstly it's unfair on genuine bidders who are interested in the items. Secondly & more importantly in most states it's illegal and there have been many high profile cases of users successfully prosecuted for shill bidding. It amounts to fraud.

Many savy eBayers can spot shill bidding easily, especially where the auction in not private. A simple search of bidders & sellers activity will show patterns will show suspicious activity. Many shill bidders use the same email provider as a hint.

Other things to look out are bid retraction which are shown within the members information box, & where one bidder has shown an interest in many items from a member. It's not always the case, as some users only deal with sellers who they feel confident with but if you think someone is shill bidding they probably are.

Shill Bidding is seen as a serious violation to eBay who will normally suspend your account for thirty days initially, if you are caught shill bidding on a second occasion your eBay account is normally closed permanently.