Glossary

Auction terms, defined

Every term you'll meet running auctions on Shopify, in one or two sentences each.

Bid increment
The minimum amount a new bid must exceed the current high bid by. Increments usually scale with price, for example $1 under $30 and $50 above $2,000. Read more
Built for Shopify
A badge Shopify awards to apps that meet its performance, design, and reliability standards. Auction Now holds it.
Buy now
A fixed price at which a bidder can end an auction early. Some apps offer it; Auction Now runs pure timed auctions.
Buyer's premium
A percentage added to the hammer price and paid by the buyer, common at auction houses. Auction Now doesn't add one; the winner pays the bid plus your normal shipping and tax.
Combined shipping
Rolling several auction wins by the same buyer into one order with a single shipping charge. Read more
Customer accounts (Shopify)
Shopify's login for shoppers. Auction Now requires bidders to sign in with a customer account, which keeps bids accountable.
Draft order
A Shopify order created by the merchant (or an app) that the customer completes by paying a checkout link. Auction Now creates one for each auction winner.
Dutch auction
A format where the price starts high and drops until someone buys. The opposite of a standard ascending auction.
Hammer price
Auction-house term for the winning bid before any buyer's premium, tax, or shipping.
Hard close
An auction that ends at a fixed time regardless of late bids. eBay uses a hard close, which is why sniping works there.
High bidder
The bidder currently in the lead. Shown on the product page with a masked name such as Chr****.
Lot
A single item or group of items sold as one unit in an auction.
Max bid
Auction Now's term for a proxy bid: the ceiling a bidder sets for automatic bidding. Read more
Next-bidder fallback
Offering an unpaid win to the next-highest bidder at their bid, automatically, after the payment window expires. Read more
Outbid
When another bidder's bid (or proxy) exceeds yours. Auction Now emails bidders the moment they're outbid.
Payment window
How long a winner has to pay before the item is offered to the next bidder. Configurable in Auction Now; 24 hours is the default. Read more
Penny auction
A format where bidders pay a fee for every bid and the price rises by a cent each time. Not a standard product auction; Auction Now doesn't offer it.
Popcorn bidding
Another name for soft close, used by live-stream selling apps: late bids keep 'popping' the timer back up until bidding stops. Read more
Proxy bidding
The bidder enters the most they'd pay and the system bids on their behalf, one increment at a time, only as far as needed to stay in the lead. Read more
Relist
Running an ended auction again, usually with a new end time and sometimes a lower start. One click in Auction Now.
Reserve price
A hidden minimum the seller sets; if bidding doesn't reach it, the item doesn't sell. Auction Now doesn't use hidden reserves; the starting bid is the floor. Read more
Scheduled auction
An auction created in advance with a future start time, so a batch can open at the moment of a drop or announcement.
Sniping
Placing a bid in the final seconds of a hard-close auction so other bidders can't respond. Soft close removes the advantage. Read more
Soft close
A rule that extends an auction's end time when a bid is placed near the close, so the auction only ends after a period with no new bids. Prevents sniping. Read more
Starting bid
The lowest amount a bidder can offer on an auction. In Auction Now the starting bid is also the floor: the item won't sell for less. Read more
Success fee
A fee charged only when an auction sells. Auction Now charges 5% of the winning bid, billed through Shopify when the winner pays.
Theme app extension
Shopify's way for an app to add a block to a storefront theme without editing theme code. Auction Now's bidding widget is one.
Timed auction
An online auction that runs between a set start and end time, with bids placed on a web page instead of called out live. Product auctions on Shopify are timed auctions.
Usage charge
Shopify's mechanism for billing an app fee based on activity rather than a flat subscription. Auction Now's success fee is a usage charge on your Shopify bill.
Watchlist
Items a bidder is following without having bid. Auction Now emails watchers when a watched auction is ending soon.
Winning bid
The high bid at the moment the auction ends. The winner pays this amount; Auction Now's success fee is calculated on it.

Run your first auction on Shopify today

Free to install. No monthly fee — a 5% success fee only when an auction sells.

Rated 4.7 / 5 on the Shopify App Store · Built for Shopify