Diving Into The World of Penny Auctions
Not so long ago a new form of internet shopping emerged with the name of penny auctions<. At first no one knew what to expect from these wild and whacky internet shopping sites that had products such as iPads and LCD TV’s listed for sale at just pennies on the dollar. Originally the idea of shopping on the internet either meant that you were going to purchase from a large company (Amazon, Best Buy, etc.) or that you were going to purchase a refurbished or second class item from somewhere like eBay or Craigslist. With the advent of penny auctions however that would all change and in the bat of a single eye lash.
What Are Penny Auctions?
As the name implies these auctions start off at just a penny and with each bid that they receive they go up in price by a penny. The products that are sold in these auctions range from low level gift cards to high level electronics and literally everything in between. The duration of the auction is set beforehand by the website itself, and is increased by a number of seconds (usually twenty) every time someone goes in and places a bid. When the bid timer reads 0:00 the auction is over and the winning bidder at the time of its ending has won the product but the losers haven’t totally lost yet. You see with a penny auction every bid that you place costs some monetary value. Depending on how you acquire your bids you may pay a few pennies up through a few hundred dollars ( for large bid packs ). So when you place a bid you are effectively spending the money that you spent on the bid and hoping that it proves to be the winner. If it does not you will not win the item nor will you be able to recoup the funds you spent on the bids. HOWEVER. Lets say you spend $100 in bids trying to win the new iPad 2 but fall short of becoming the actual winner. Most websites are going to say to you “The MSRP of the iPad 2 is $600, and you spent $100 on bids, so pay us $500 and we will send you a brand new iPad 2.” So you can see how this can be a rewarding venture even if you are not the person who actually wins the auction. But how do you avoid spending $100 on bids’ and losing?
Proper Penny Auction Strategy
As with anything that you may do which involves a bit of luck and wits, a proper strategy should be implemented when you are trying to win a penny auction. The first thing that you should do is NEVER EVER bid on an auction that has more than 10-20 seconds remaining. At that rate you are doing nothing more than wasting the bids that you’ve purchased and for the sake of survival that is a horrible idea. The next thing you should do is a bit of market research. Spend some time on the site and figure out what products are selling for what prices. If you see an iPad for 50 cents and 5 seconds left, you may be enticed to bid, though you can rest assured that EVERYONE else will have the same idea and bid as well, jacking up both the price and the time remaining on the auction. So to conserve your brain and your bids only bid when the auction has reached a point that is a reasonable selling point. While it might be fun to win an iPad for 50 cents (and people have) its not going to happen everyday so base your strategy on something else.
Where To Play
At this point you are surely very excited at the prospect of getting involved with a penny auction website and I feel your energy! Though the one thing that is important to remember is that not all penny auction sites are created equal. Some offer better products than others and their are some you should just avoid altogether. In my research I found at least one site that has had a fair amount of success in the past and a site which users have come to know and love. The site is .com and its something that you should definitely check out and begin to play on if this is something that you are interested in.
In closing just be advised that not everyone is going to win all of the time, and their is a risk of loss when you join a penny auction website. The tradeoff however is that if you do your homework and let the system work for you, their is a good chance that you will be able to score some top quality merchandise at rock bottom pricing. Be sure to report back with your findings after you have signed up.