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The bid increment amount is added to the current item price, not to the current maximum bid amount, to determine the next minimum bid for an item. Because of this, it is possible to be outbid by less than the bid increment amount.

For example, an item could be listed with a starting price of $10 and a bid increment amount of $1.00.

If the first bidder enters a bid of $11, the item price would remain $10 but the next minimum bid would increase to at least $11.00. Any bid amount $11.00 or higher would then be acceptable. Therefore, the next bidder could then enter a bid amount of $11.02. They would then become the high bidder, the item price would increase to $11.02, and the next minimum bid would become $12.02.