Undercutting Its the name of the game.

Have you ever posted a ton of items hoping they sell and 2 days later you check your mail and they all return to you. There are two reason for this one is some items just have no buyers or very few buyers. Things i put in this category are Epic BOEs, Blues, cured leathers, some meats. The other reason is you got undercut and the market moved below your price and stayed there. Most of the time there is no way to prevent undercutting but you can minimize the damages.

One way to reduce the damage is to not place your entire stock of items on the AH at one time. Separating it out and posting 30 here and there will make sure that 2 hours later you can post more of the items up. But this time you will be the undercutters dropping the price to a level you deem acceptable as long as its below the competition. However you may still be undercut even after undercutting. This is how markets deflate when players keep undercutting each other lower and lower. Example of this last Friday Netherweave bags were selling for around 13g today they sold for 7g30s. This happened for 2 reasons an abundance of netherweave cloth and me dumping my stock of netherweave with no care how low the price got because it was profit anyways.

One way to curb the damages from not selling because you are undercut is to post auctions for shorter intervals. Instead of posting for 48 hours with a higher deposit. Try posting for 12 hours with a lower deposit to the AH. That away if you do run out of supplies or items you get them returned sooner if your undercut so that you can re post them at the new market price.

Undercutting is a common practice used by players to sell items fast. You can use this to your advantage. In the bid low sell normal process I say look for items that are commonly used see if it says buy or bid. Most of the time when Auctioneer says buy it may be because of undercutting. Some scrub players of wow want to sell quick so they will post items that would sell for about 6g for 3g. This is where you can make some serious profit purchasing these kind of items and reselling them for the normal cost.

So now that your informed that undercutting is a fact of life. Use the tips i provided to not prevent it but mitigate the damage. Also make use of the free gold scrubs dump into the AH all day long. Sell it and make your gold and lol at how easy it was. Use undercutting to make sure your items sell but don't be silly with your undercuts a few silver is all it takes.