Traditional Bid Auction Procedure is as follows:
AMExchanges.com protects the integrity of the bidding process by conducting all of its auctions in a Traditional Bid Auction format. Auction format procedures are as follows:

1. A registered user of AMExchanges.com post item on sales at AMExchanges.com. There are follow Ten (10) types of auction that is available at AMEXchanges.com
   1. Overstock item sell it as one lot with Reserve price and no BUY IT NOW price option.
   2. Overstock item sell it as one lot with Reserve price and BUY IT NOW price option.
   3. Overstock item sell it as one lot without Reserve price, however, the seller offers BUY IT NOW price option.
   4. Overstock item sell it as one lot without reserve price, nor BUY IT NOW option. This type of auction mean the seller is willing to sell its item at or above starting bid price.
   5. Overstock item and allows break lot sales with only starting bid, this mean the seller is willing to sell its item at or above starting bid price. Please notes, Reserve price is not available in a break lot sales auction.
   6. Overstock item and allow break lot sales with BUY IT NOW option. Please notes, Reserve price is not available in a break lot sales auction.
   7. Recycle Material only can sell it as single lot per auction. If a recycle material auction with no reserve price and no BUY IT NOW option. This type of auction mean the seller is willing to sell its material at or above starting bid price.
   8. Recycle Material auction with Reserve Price, no BUY IT NOW Option.
   9. Recycle material auction with reserve price and BUY IT NOW option.
   10. Recycle Material auction with BUY IT NOW option but no Reserve Price.
2. In order to participate in a specific Auction, you have to be a registered user of AMExchanges.com. A registered user must place a bid on that specific Auction Item equal to or above the min. bid as it indicates on the bidding page at the time of entering bid.
3. A registered user may also enter max. bid price. Max. Bid will allow AMExchanges.com act on your behalf to automatically bid. This function is also known as Proxy Bid.
4. Each registered user may access to their bid history under MY AMExchanges My Buying section to review:
   1. My Current Bid information.
   2. My wining Item history
   3. My Buy In item history (with BUY IT NOW function)
   4. The item I did not win.

Auto bid / Proxy Bidding Function at AMExchanges.com:
The "Proxy" system employs an automated bidding system which implements your bidding directions. For example, you may enter a bid for the "minimum" required, or set an amount that represents your "maximum". If you enter a maximum the system will automatically engage a Proxy for you, which will start by bidding the minimum needed to top the last bidder.. It will then keep your maximum bid a secret, but fight off any other bidders automatically. It will never bid more than you entered, and it will always bid as little as possible to keep you at the top. If it runs into your limit, it will stop bidding and AMExchanges.com system will send you an e-mail and advise that you are out bid.

Reserve Price Auctions
A Reserve Price Auction is any Auction which includes a Reserve Price, a minimum bid amount above the Starting Price that is required by a Seller to be obligated to sell the Auction Item. The Reserve Price may not be provided to any bidder; however, once any Bidder's Limit Bid meets or exceeds the Reserve Price, the bid form will indicate the Reserve Status as having been "met". Bidders will know that there is a Reserve Price but may not know the amount of the Reserve Price.

A Reserve Price Auction will also include a Starting Bid

A Reserve Price Auction is indicated in the "Auction Type" section of the bid form. It is also indicated in the auction listing with the abbreviation ?ES.??If no bidder meets the Reserve Price at the Auction Closing, neither the Seller nor the high bidder is under any further obligation. On reserve auctions, if your maximum proxy bid meets or exceeds the reserve amount set by the seller, the system will raise your bid on your behalf so that the reserve is met. This allows for an auction to be ended successfully. AMEXchanges.com uses an auto-bid system to make bidding on auctions more convenient and less time-consuming for buyers. There is nothing you have to set up in order to bid in this way. When you bid on any auction at AMExchanges.com you will be placing bids using this method.

Here's how auto bidding on AMExchanges works:

1. When you place a bid, you enter the maximum amount you'd be willing to pay for the item. Your maximum amount is kept confidential from other bidders and the seller.
2. The AMExchanges system compares your bid to those of the other bidders and Reserve Price, if available.
3. The system places bids on your behalf, using only as much of your bid as is necessary to maintain your high bid position (or to meet the reserve price). The system will bid up to your maximum amount, if competitive bids occurred.
4. If another bidder has a higher maximum, you'll be outbid. BUT, if no other bidder has a higher maximum, you win the item. And you could pay significantly less than your maximum price! This means you don't have to keep coming back to re-bid every time another bid is placed. In Reserve Price Auctions, if your maximum bid is the first to be greater than the seller's reserve price, the AMExchanges system will automatically jump the price up to meet the reserve, and bidding will continue from there.

BUY IT NOW purchase Option

1. A Seller may utilize the BUY IT NOW option on any Auction Item as long as the seller posted its desired BUY IT NOW price.
2. The BUY IT NOW Option is a requested price published by the Seller, that if utilized by a Bidder, will close the Auction immediately and consummate sale to that first Bidder who opted to utilize the BUY IT NOW Option.
3. Use of the BUY IT NOW Option results in an automatic Winning Bid; thereby creating the legally binding contract between the Buyer and the Seller.
4. If the BUY IT NOW Option is not utilized by any Bidder, the active bidding may run through and higher than the BUY IT NOW price.

Advantages of BUY IT NOW Option:

1. Allows a bidder to purchase an item immediately at a set price without waiting for an auction to close.
2. Allows a Registered Seller to post an auction in a "classified" manner while ensuring that the bidder will make the purchase.
3. BUY IT NOW takes precedence over traditional winning bids.

How to determine winning bid in a break lot sales auction?

1. Price (higher over lower).
2. Bid quantity (larger over smaller). If two or more bids are for the same price, the higher quantity will take precedence.
3. Initial bid time (earlier over later) If two or more bids are for the same bid price and bid quantity, the time the bidder placed their FIRST bid on that lot takes precedence.
4. The same rules apply, if when several bidders are tied for an item and we must decide whom to bump from the winning bidder's list.

Break Lot Sales Auction (without Reserve Price) Examples:
ABC company post 100K pcs of overstock 0805 0.001uF 50V caps with min. lot of 10K pcs. There are two bids: one at $0.05/pc for 30K pcs and one at $0.05/pc for 10K pcs. If a new bidder bids $0.06 for 80K pcs, that bidder becomes the highest winning bidder, leaving 20K pcs of caps to be assigned to lower priced bidders. The bidder at $0.05 and 30K pcs will remain a winning bidder because of greater quantity; however, he or she will only be allocated 20K pcs because of lower price. The bidder at $0.10 and 10K pcs will be bumped from the wining bidder list. If $0.05/pc and 20K pcs winner wants to get more qtys, he or she has to place a new bid that is equal or higher than 0.061/pc with min. qtys of 30K pcs (as it can not be lower qtys than your previous bid).

Can I Lower Bid Price or Quantity?

1. You are not allowed to lower your price with a new bid.
2. You are not allowed to lower your quantity with a new bid as long as you have a winning bid on the auction.
3. If you want to decrease your quantity, you must wait until someone outbids your Bid Price, so that your bid is no longer on the Current Winning Bids list.

Bid Cancellation Policy

1. All bids are non-cancelable once submitted.
2. A record of your non-winning bids is kept. If a current winning bid is disqualified in an auction, AMExchanges may restore your currently non-winning bid to winning status at your most recent bid price. This decision is made at the sole discretion of AMExchanges.