How to Set up Drupal Commerce Auction
To configure Commerce Auctions on Drupal 7 I installed the modules referred to here, then performed the steps below (Assuming a clean install of Drupal 7):
1. Visit Store / Products / Add a Product. I created a new product type named "Auction Product", then created the product "Auction Item" and set the price to $1.
2. Create a new content type to be used for your auction listings. For simplicity, I've chosen "auction item".
3. Click on Store/Commerce Auction to begin to configure your auction.
4. Select the content types that will be available for auction. I've only selected "auction item".
5. Choose your timeout settings (auction sniper prevention) and bid incriments.
6. Return to the auction content type and hide the fields for "product", "sku" and "product price".
7. Set the User Permissions: Allow "authenticated user" to place bids on products.