What is a Penny Auction?
Penny Auction which is also called bidding fee auction sometimes is that kind of auction in which all the bidders or participants pay a non refundable fee to place a small bid. When the bidding time expires, then the last person to have positioned a bid shall win the item and shall also pay the final bid price which is usually lower than the actual price of the item. The auctioneer earns money in two ways, first when any bidder places a bid on his auction; he gets a bidding fee and second when the winning bidder makes payment.
Penny Auction Facts
All the auctions which are listed on internet or anywhere else are not same, so make sure that you read the instructions carefully before bidding. Some auctions require you to pay the final amount of the item plus fee for each bid placed and the cost of shipping. Some facts about penny auction are that, they are very addictive so be very clever, there are several auctions available on internet but it depends on your investigation. Some retailers are even auctioning items like cars, DVDs, iPods etc. A seller may also use a penny starting bid to attract immediate attention and generate excitement about a popular item they are selling to get the bidding going knowing that the end price of the item they have to offer is generally in a certain range.
If you go to a huge website as eBay you might discover 15 copies of a newly published novel. The one initiated for one cent will draw bidders prior to the one started for $10 as long as the conditions are the same. It is not rare to perceive the one started for a minor bid, go for more in the end than the one begun for the higher bid. Of course at times a vendor does not draw the customers he or she has aimed to attract with the small starting bid, but in the end, selling at the lower cost might also add a reliable customer. This would be a purchaser who will add this vendor to their “hot favorites” and continue to buy from them in the coming days.
Be Cautious of Scam Auction
There are several penny auction sites which appear to be doing a fraud business through shills. Penny auction employees or sometimes friends of the retailers bid anonymously on the auction to improve the auction’s reputation. Retailers sometimes also use bid bots; Bid bots is a program which bids on an item over and over again to reach the actual price of the item so that the fraud penny auction company gets a profit from all the bidders and then give the item to the last legitimate bidder in order to maintain their site’s reputation. There are some auctions which do not even ship your item after you have paid the price you mentioned in your bid.
Penny Auction Watch
Penny Auction Watch was established to warn bidders of the scam auction sites. Bidders can contact freely with the other members in forums and here they are alerted not to involve themselves in any of the scam sites. In addition to this, bidders are also updated with safe and legitimate auctions. Penny Auction Watch takes care of every penny auction fact by providing details about each legitimate or fake auction.