Since 2003

Posts Tagged ‘Penny Auctions’

Online Penny Auctions: Strategy, Excitement, and Great Deals

Friday, July 19th, 2013

Have you heard about Penny Auctions, the latest form of Internet shopping, excitement, and entertainment? This new concept in online shopping can make it possible for ordinary people just like you and me to purchase high-quality, name brand electronics, famous label products, and more, at prices far below the regular retail price. This fun-filled sales process sets up bidders to strategize and outwit each other… with enormous discounts off top-quality items as the prize.

How Do Penny Auctions Work?

To participate in these online events, a prospective bidder registers for an account on an auction site and pre-purchases a package of bids to place on the items they are interested in. The per-bid cost will vary from one auction site to the next, but it generally falls in the range of $0.50 to $1.00.

One thing that makes this type of auction unique is that bids do not necessarily reflect the worth of an auction item. Auction prices start at zero, and each bid adds 1 cent to the price of the item. In this way, bidders are limited by the number of bids they place, rather than the selling price of the product.

Each auction item has a countdown clock that shows the time remaining in the auction. Each time a bid is entered, additional time is added to the clock in order to allow competing bidders a chance to counter-bid.

The auction ends when the timer reaches zero and no additional bids have been placed. In a penny auction, the winning bidder generally has two options:

1. He can pay the final bid price of the item and arrange for it to be shipped directly to him. This final amount is often hundreds of dollars below the regular retail price of the item.
2. He can swap his winning item for its value in additional bids, thereby accumulating a large number of free bids to be used on future auctions.

Sounds Great, but Do Your Research

As with any type of online shopping, it is important to know how to protect your privacy and your pocketbook when bidding on Penny Auction sites. Be careful to sign up only on auction sites that specifically guarantee the integrity of their auctions — that they do not use any automated bidders to manipulate auctions, and they do not permit their own employees and their families to participate.

It is also necessary to protect yourself against scams. With the proliferation of new penny auction sites, there have been reports of poor customer service, fraudulent auction procedures, and non-delivery of items. If you limit your participation to the larger, more well-known and established websites, then these situations will usually not be an issue.

So, consider a penny auction site the next time you are thinking about the purchase of a laptop, iPod, camera, camcorder, or gaming console. The strategy, excitement, and great deals they offer may be just what you are looking for.