How Penny Auctions Work
Penny Auctions are based on two things. People’s competitive instinct and crowd mentality.
In it, an item is put on auction for a certain amount of time and people bid on it – one penny per bid. And everytime someone bids the cost of the item goes up by 1 penny. And at the end of the auction, which everyone knows about, the last person to bid gets to win.
Brraking it down, in a penny auction bidders pretty much pay-per-bid for an item. And as more people bid the timespan of the auction gets stretched. The person lucky enough to be placing a bid when the timer counts down to zero is the person who is declared the winner.
But though penny auctions tend to be based on the same general principals they differ in the smaller details which tend to be important too. So if you want to do well in a penny auction, make sure you’re completely in the know about all the rules before you get into bidding wars.
For instance, some auctions have a mandatory rule that you have to pay for whatever amount is showing at the end of the auction – whatever it may be. So, as one bid increases the cost by a penny, when an auction has ended at $10 it means that 1000 bids were placed on that item. Supposing the winner bid just 50 times, they would only have placed 50 of the total number of bids. But they would still pay $10, for all the bids along with shipping and handling costs. That’s why you need to make sure you know what you’re getting into before free bidding.
Penny auctions are definitely getting very popular as a fun, exciting and highly addictive way of shopping. So it’s hardly a surprise that many unscrupulous operators have come into the business. They practice all kinds of ‘cheats’ including bots or even plants that drive up the bids artificially. The human version of these cheats are known as shills while the software version are called bid bots.
If you’re looking for an honest operator with whom you can indulge in an enjoyable spot of penny-auctioning check out Bid Rivals.
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