Penny Auction
What is penny auction? Penny auction is a new internet-based auction format, thanks to the high-speed internet connection. This is possible because now web servers can handle many requests simultaneously.
The penny auction refers to the rule that All auctions start from 1 penny and each bid increment is also 1 penny. Bidders like it because since the increment is so small, the price goes up slowly. The auction house likes it because they make money for each bid. In conventional online auctions, such as eBay, the bid increment is often a lot higher than 1 penny especially when the starting bid is not 1 penny.
The main difference between the penny auctions and conventional online auctions though is that the bidders have to buy the bids prior to the auction. The price of each bid ranges from 0.50 to $1.00. In eBay auctions, bidders often end up changing minds and do not pay for their winning bids. This is obviously not a concern with the penny auctions. However, the new auction format, a lot of bidders can end up losing money - a lot if not careful!
Penny auction is a good way to win some super good deals that you can never win in a conventional auction. Obviously since each auction sites have their own rules and limits, you want to study their rules carefully first before jumping in to buy their "bid packs." There are also some sites that are kind of sneaking by not telling you clearly how much it's going to cost you to start. So check out some penny auction sites review here before you start.
The penny auction refers to the rule that All auctions start from 1 penny and each bid increment is also 1 penny. Bidders like it because since the increment is so small, the price goes up slowly. The auction house likes it because they make money for each bid. In conventional online auctions, such as eBay, the bid increment is often a lot higher than 1 penny especially when the starting bid is not 1 penny.
The main difference between the penny auctions and conventional online auctions though is that the bidders have to buy the bids prior to the auction. The price of each bid ranges from 0.50 to $1.00. In eBay auctions, bidders often end up changing minds and do not pay for their winning bids. This is obviously not a concern with the penny auctions. However, the new auction format, a lot of bidders can end up losing money - a lot if not careful!
Penny auction is a good way to win some super good deals that you can never win in a conventional auction. Obviously since each auction sites have their own rules and limits, you want to study their rules carefully first before jumping in to buy their "bid packs." There are also some sites that are kind of sneaking by not telling you clearly how much it's going to cost you to start. So check out some penny auction sites review here before you start.