What happens if I place a bid that’s higher than the minimum bid?

When you place a bid, that is your maximum bid. The system will automatically bid for you (as needed) up to your maximum bid.

For example:

If the minimum bid is $1 and you (Bidder #1) place a maximum bid of $10, you will initially be winning the auction with a bid of $1.

Later if another bidder (Bidder #2) places a maximum bid of $5, the system will start bidding for you.

Bidder #2 will automatically be outbid and you (Bidder #1) will now be winning the item with a bid of $5.50.

This should be similar to what you see with other auction systems like eBay.