Penny Auction Sites Review
Are you interested in getting a great deal from penny auction (aka penny bid) while you don’t want to take unnecessary risks? You might be wondering if penny auction is a scam or if some of the penny auction sites are scam. Since there are so many penny auction sites out there, making a good selection can be quite time consuming. We are here to help you understand how penny auction works and how particularly some of the best sites work. Hopefully, we can help you reduce risks and save time.
Choosing a good site is the first step of winning a great deal. There are more penny auction sites than you really need. Since the business is very profitable if run successfully, more and more similar sites are coming out. Obviously, some of them are not going to survive. As you can imagine, if a site does not have enough traffic, it does not get enough bids. They either use fraudulent self-bidding or take a loss. If they lose money, you risk them not delivering what you win (even though you, as a bidder, face less competition). So how do you judge if a site is safe, or which site poses the lowest risk of going belly-up?Penny auction refers to the fact that each bid increases the price by just 1 penny. Clocks are reset to around 15 seconds when a bid is placed before time runs out. The idea of the business is actually brilliant. It keeps the price low and the bidding count high. The high bidding count benefits the house and the extremely low price makes the item a “ridiculously good deal.” A simple example is an iPad sold for $40.00 which is “ridiculously low” compared to its normal retail price ($500-$800). The $40 final bid represents 4000 bids placed. If the average cost of each bid is $1.00, the auction site pockets a whopping $4000 which is 5 times the retail price and a hefty profit (almost a “highway robbery!”) So why can the winner get such a great deal? It’s because there are a lot of losers who place bids that go to the auction house!
Although all these sites are based on the above model, there are variations in detailed rules for each site. For example, some sites offer the so-called “Buy-Now” protection which means that bidders can choose to buy the item at a preset “list price” while getting credits from spent bids. Many sites also have limits on how many items each bidder can win during a specified period of time. While each bid causes the price to go up by 1 penny, not all costs of bids are equal. Some sites have higher cost per bid than the other. Even on the same site, each bid cost can vary depending on the “bidpack” size you purchase. Obviously if you commit to a larger bidpack, the average cost of each bid is going to be cheaper. Most sites also have bidpacks up for bid.Bidding competition usually gets quite intense and eventually exhausting as time goes by. Most sites thus offer the so-called auto-bidder, a.k.a bidding bot, or bid agent. The bid agents place bids when the clock ticks towards zero. While they prevent you from missing the bid before time runs out, you want to avoid letting your bid agent run out of control. Remember, each bid costs you money. While most sites offer auto-bidder, we do not recommend you use it at least in the beginning. Some of the auto-bidders cannot be stopped during the bidding, and it will try to outbid every single bid from others. It can empty your pocket before you can realize.
According to our research based on the factors discussed above, we recommend the 3 penny auction sites below. We believe these 3 penny auction sites are among the best sites available. Each of the 3 sites has its pros and cons.
We summarize in the table below comparisons between the 3 sites, including items available for bid. Not all sites have the items you are looking for. You do not want to buy bidpacks until you know the site has the items up for bid (frequently).
Click the links below to see more details. It’s free to register, you pay only when you buy bids.
1, You might want to have enough bids to start participating in an auction event. You certainly do not want to run out of bids when it comes to the critical time. Running out of bids is a common reason of losing a penny auction. Starting with a 30-50 bid pack might seem “safe” but it can be a disadvantage.
Alternative to Penny Auction
There is yet another type of auction that works slightly differently and is less risky compared to the above mentioned. I would call this a reverse penny auction. In a normal auction event, bidders compete and bid up the price, and final highest bid wins. In the reverse auction, the “auction house” bid down (by the seconds) the price, and you decide if the price is low enough to buy it. Any bid will end the auction immediately. The site charges a monthly fee of $29.99 with a 7-day free trial. Note that these auction events also cost you money to enter though much cheaper than the above penny auctions. It normally costs 10 “credits” to enter an auction event. The minimum credits to purchase is 50 credits priced at $7.50, so it is about $0.25 per credit, and each event’s entry fee is a minimum of $2.50. Once you hit “Buy it Now,” you have 2 minutes to complete the transaction. Note that the monthly fee does not count toward any auction bidding price. This type of auction also has no limit on number of items you can win. This reverse auction obviously does not have the risk involved like the above penny bid auctions. It’s a little harder to get an “outrageous deal,” but you can still get pretty good deals if you are not too greedy.
penny auction sites, penny auction