Quantity

For the majority of auctions on eBay, the quantity will be “1,” (single item auction). There is an option available where you can specify the number of items you want to sell in a single auction. This is commonly referred to as a Dutch auction. Dutch Auctions are a bit tricky to understand, and the outcome (sale of your items) is not assured.

Dutch Auctions

If you look at the help file that eBay provides for entry of multiple items in the Quantity entry, you’ll only walk away thinking “if it’s that complex, why bother.” EBay provides the following explanation for Dutch Auctions (Items in BLUE have been added for clarification):

“Online Auction-type listing: List identical multiple items together in an online auction. The winning bid in a multiple item listing is based on the highest bid per item.

Example: Suppose you have 50 hammers, all the same, that you'd like to sell for at least $5.99 each. You would list them as a quantity of 50, and a starting price of $5.99. 

• Bidders specify both their offered price per unit, and the number of items they want. 
• Winning bids are selected in order of bid price per item – that is, a bid for 5 units at $12 per unit is ranked above a bid for 10 units at $11 per unit (i.e. the bidder at $12 per unit is assured of receiving 5 units, but at the lowest successful price of $11 at this point).
• If two bids have the same price per item, the earlier bid is given priority. Winning bidders will pay a price equal to the lowest winning bid.

Example: 

For a listing with 10 available items and 2 bidders:

• Bidder A bid for 8 items at $5 each. ($40 Total)
• Bidder B bid for 3 items at $6 each. ($18 Total)

In this case, the lowest successful bid is $5 ($40 Total). So the outcome of this listing is:

• Bidder B wins 3 items at $5 each. ($15 Total)
• Bidder A wins 7 items at $5 each. ($35 Total – Note: This bidder wanted 8 so they may not complete their purchase)

Suppose before the auction ends Bidder C decides they want to bid. In order for that bidder to enter a successful bid, their bid must exceed the current high bid value of $6 each. If Bidder C bids $7 for 2 items, the outcome of the auction would be:

• Bidder C bid $7 each for 2 items, but wins 2 items at $5 each. ($10 Total)
• Bidder B bid $6 each for 3 items, but wins 3 items at $5 each. ($15 Total)
• Bidder A bid $5 each for 8 items, but wins 5 items at $5 each. ($25 Total – Note: This bidder wanted 8 so they may not complete their purchase)

Let’s add a couple of final scenarios for Bidder A:

Suppose before the auction ends Bidder A decides they want to win all 8 items. In order for that bidder to enter a successful bid (win 8 items), their bid must exceed the current high bid value of $6 each (Bidder B). If Bidder A bids $8 for 8 items, the outcome of the auction would be:

Suppose before the auction ends Bidder A decides they want to win all 8 items. In order for that bidder to enter a successful bid (win 8 items), their bid must exceed the current high bid value of $6 each (Bidder B). If Bidder A bids $8 for 8 items, the outcome of the auction would be: Bidder A bid $8 each for 8 items, but wins 8 items at $6 each. ($48 Total) Bidder C bid $7 each for 2 items, but wins 2 items at $6 each. ($12 Total) Bidder B bid $6 each for 3 items, but there are no items left so they do not win. $60 Assured

Suppose before the auction ends Bidder A decides they really only need 6 items. In order for that bidder to enter a successful bid (win 6 items), their bid must exceed their previous total bid value ($40) & a current successful bidder’s bid. In this case Bidder A must bid above $40 total. For 6 items that comes to a bid of around $6.75 each ($6.67). If Bidder A bids $6.75 for 6 items, the outcome of the auction would be: Bidder C bid $7 each for 2 items, but wins 2 items at $6 each. ($12 Total) Bidder A bid $6.75 each for 6 items, but wins 6 items at $6 each. ($36 Total) Bidder B bid $6 each for 3 items, but wins 2 items at $6 each. ($12 Total – Note: This bidder wanted 3 so they may not complete their purchase) $48 Assured, $12 Potential

• Bidders cannot lower their "total bid value" (the bid price per item times the number of items on which they're bidding) when they raise their bid in this type of auction listing. 
• Winning bidders have the right to refuse partial quantities. This means that if you win some, but not all, of the quantity you bid for, you don't have to buy any of the items. In the above example, Bidder A bid on 8 items, but won only 7 of them. Bidder A can refuse to complete the purchase, because Bidder A did not win the quantity he or she bid on. 
• Bids are displayed when you click on the link reading, "Bidders list". Bids that are not currently winning show their bid prices, but bids that are winning show the price that these bidders would pay if the auction ended immediately. This means that, in the Bid History, all winning bids show the same price per unit – the lowest winning bid. To place a winning bid (a bid that wins at least some units), a bidder would need to exceed this price.”

As you can easily see Dutch Auctions are a little complex to get your arms around. I spent the better part of the day figuring this out the first time myself, but they do provide you with a viable method of liquidating multiple items of the same type.