it was a very wrong idea starting directly with a website, should've went for some reputation or fame before doing such a project

The option to take out balance at the moment of bidding and returned when outbid is very inconvenient in many ways. I don't ever see any site do that, only the winning bid should be deducted balance is the most acceptable choice and even that is already a problem. Winning buyer can be taken a portion of the balance as deposit fee and have up to 12 hrs to pay or to withdraw after winning and if he chooses not to, he will lose the deposit to pay for the seller and the site is a possible better option.

Thank you for your feedback, as there's full anonymity (I don't even grab IP's) it's too easy for people to fake bid. You are right, taking balance instantly is not the move, it will discourage people from bidding early. I have toned it down to take $20 as collateral which will be given to the seller if the buyer backs out. However I don't agree with the winning bid not getting debited automatically, right now the system is once they win they are greeted by a checkout page where they enter their shipping details, If they have a problem or if they changed their mind they can contact me and we can work it out before they enter their details.