What does it mean to be outbid in an auction?

Being outbid in an auction means that another participant has placed a higher bid that exceeds the amount you have offered for the item. In the competitive environment of an auction, each bidder strives to secure the item by presenting their best offer. When someone else places a bid that is greater than yours, it signifies that you no longer have the highest standing offer, hence you are considered outbid. This moment often prompts bidders to either increase their own bid in response or decide not to continue, depending on their strategies and budget for that particular auction.