An overview of penny auctions
To begin with a penny auction is a kind of pay auction wherein participants have to submit a non-reimbursable fee in order to place additive bids. As the name suggests penny auctions are traded in pennies (and in the United States in U.S. cents). Penny auctions generally include electronic gadgets, jewellery, fashion accessories, shopping vouchers etc. There are several kinds of penny auction websites available online, each with a different trick to win. Let’s briefly understand the working of a penny auction:
Firstly, the participant chooses the product he wants to bid for. This is followed by payment of non-reimbursable fee for participating in the auction. The fee is sometimes called a credit pack. There is no restriction on the number of credit packs one can purchase as they can be pre-purchased. Each bid is placed in exchange for a credit pack. The bid amount commences from zero value and with every bid that is placed, the rate of the chosen item rises by a pence or U.S cent (as the case may be). Usually a particular time is fixed for bidding and after the elapse of the fixed time the bidding ceases and the value at which the bidding stops becomes the prevailing price. In most of the websites the elapsing time is viewable however certain penny
auction websites have concealed reserve prices.
Why should you participate in penny auctions?
Firstly the participation fee or the credit pack for a penny auction is quite low, so it goes to say that worse case even if you run out of luck and miss to win the bid; you’re actually not losing much money. So it is relatively safe to bid and try your luck.
For those who love whiling away their time online, certainly penny auction is good entertainment.
Penny auctions cover a wide variety of items which are open to bid, so there is something for everyone. From toys, laptops to handbags you can avail anything at the click of a button. At penny auctions you may sometimes land up paying prices as low as 15% of the actual price for the things you bid.
E shopping = Smart shopping. Shop anywhere anytime anything! With penny auction you save on time and money all at the convenience of your home. You could also protect your anonymity if you wish to while bidding.
5 tips to make the most out of penny auctions:
Never place a bid immediately after a bidder has placed his bid. Permit the timer to go down, there may be other bidders trying to place bids.
Don’t take the lead for a bid. Place your bid just when your instincts tell you that the timer may stop. It’s best to place a bid on items which have less than 2 minutes left to close.
Choose the item you most want and try to bid smart. Always do a good research on it prior to the bid to make sure you don’t end up overbidding the item.
Instead of purchasing credit packs often, consider buying them in bulk at once. Bid packs are available which are relatively cheap.
Go through all the rules of penny auction site before you venture into it. You can go an extra mile to research on strategies to increase your chances of winning.