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How Penny Auction Works in General

Feb 28

The Penny Auctions sites have

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created a big buzz in the marketing world. Of Course, why wouldn’t a site that offers big ticket items for just pennies not be popular? The Penny Auction is a completely unique type of auction. In theory, both the seller and one bidder could benefit equally from a penny auction. Having the idealized end result of a low purchasing cost for the buyer, and a high earning for the seller. You may have heard Penny Auction sites referred to as “gambling sites” or “gaming sites” simply because these sites require strategy. Because they differ so much from the other popular auction sites, Penny Auctions acquired a bad rap with the so called “gambling” involvement. The user just needs to keep in mind that Penny Auctions are not like any other Auction site. Here you shall be provided with the run down of the general way Penny Auction works. A penny auction is a simple system where an item is put up for auction. Everyone on the site will be able to see the auction and you bid on the item that catches your fancy. With a click of the mouse, users will place their bids and compete for the top position to win. The auctions are placed in a set time and the timer will reset every time a new bid is placed, after the time of the auction has exceeded. As soon as the timer hit’s zero, then the highest bidder wins. So let’s cover some

need to know basic rules of the Penny Auction Site:

  • Bidding – To bid on an item you have to pay-per-bid. Stated by the name Penny Auctions, the individual can only bid one penny at a time. Penny auction sites offer special promotions where users are able to get free bids.
    • Losers – If you were in an auction and you lost, you no longer have to ability to get a refund for the bids used.


Now that you have an understanding of the rules, let’s go through, step-by-step, to get started on Penny Auctions: 1. Sign up. In order to play you must register with the site. 2. Check out the site. Take your time and see what type of items interest you. Observe the auctions taking place and acquire a feel for what you would be needing as far as bids. 3. Buy your bids. Keep in mind a serious bidder buys a large amount of bids to keep a good advantage, plus buying a package deal offers a nice discount. 4. Join an auction and start your bidding. Once you have taken a good look around the site, pick an item to focus your bids on, and start bidding. Remember that you have less chance of wasting your bids by waiting closer to the end of the auction. 5. Competing for the top.Once you have started bidding in an auction, you will find yourself bidding against others to win. Notice that when the clock moves towards zero minutes, people start to bid more frequently. At this point the clock will begin resetting itself back 20 seconds each time a new bid is placed. Here, at this point in the auction is when your extra bids

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come in handy. 6. Payment. Penny Auctions is an E-Commerce site, so it works

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like any other auction site. If you have won that title as the last bidder, you now need to pay for the item. Fill out your information and the item will be sent. Remember that you will most likely be charged a shipping fee as well, so be prepared. This covers the basics of how Penny Auctions work in general. I hope you have a better understanding of what Penny Auctions is all about. Don’t forget to check out more information about penny auctions from our FAQ’s department; http://pennyauctionreports.org/faqs Information References: http://www.smartmoney.com/spend/family-money/how-penny-auctions-work-1300313918147 http://www.youtube.com/watch?v=7KAUeQWFDXg http://www.consumerreports.org/pennyauctions