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What’s a Penny Auction Site? What’s the Risk of Penny Auctions?

Some of you may have bid in some penny auctions on various sites, some of you might be wondering what a penny auction site is, throughout this article I’m going to give you everything you need to know about how a penny auction site works, and some advantages and disadvantages/risk with using these type of sites.

First off what is the definition of a penny auction website? The general idea of a penny auction is where you as the bidder, register and buy bids to place a small incremental fee to see if you can win that item. A majority of penny auctions have the snooze you lose mentality, if you don’t win the auction you lose all the bids you purchased along with it, but if you win you normally save huge amounts of money at the same time. So as you can see there is a major advantage to participating in a penny auction, as well as some major disadvantages.

How the penny auction works: A majority of 메이저사이트 have bids that cost below $1 for a set # of bids. Once you make the payment for the bids you are free to start bidding. Each bid placed increases the cost of the item by.01 cent, and increases the amount of time left in the auction by a set amount of time determined by the site developer. The winner of the auction then pays the amount for the item, and remember the bids are non-refundable that you purchased.

How do you win these penny auctions? Well one thing I learned from observing and bidding on some of these penny auctions, is that #1 you want to stock up on the amount of bids you have, learn to bid in a timely manner. My best suggestion would be that you watch what the ending prices of certain products are, this is where I would use a majority of the bids. Try watching to make sure you aren’t fighting with multiple bidders, 2-3 is OK but if you have 10 – 20 people bidding against you your chances of winning are very slim, so just be patient and wait till the right time comes where you can be a factor and have a shot at winning. The one problem I have is that once I get caught up in a bidding war I tend to use up all the bids I have. So my word of advice here is to be careful, set a limit of how many bids you want to use, and don’t let yourself start wasting away bids.

If you follow these rules you will be sure to save big on penny auctions because as stated they always go well below retail price, you just have to watch and make sure your not spending more on the number of bids purchase and the final price that you need to pay for the winning bid as well.

Well by now you might be tired of reading, but I’ll recap the advantages and disadvantages.

Advantages

* You can save big money
* The bidding process is fun
* Bids cost below $1 (.50 – .90 cents is common)
* Get the newest electronics at half price or more off.

Disadvantages

* Getting caught up in bidding, and wasting to many bids
* No Refunds for bids on most sites
* Losing major money if your not careful (set a limit for # of bids your going to spend)

 

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