What is a Penny Auction?
Penny auctions are similar to a traditional auction, where items are purchased through a bidding system. A penny auction is an online auction where bidders make bids in increments of one cent with every bid raising the price of the item by just one cent. Unlike traditional online auctions, bidders must pay for bids or bid packs. Also unlike traditional auctions, penny auctions are timed. The last person to place a bid is determined the winner of the auction. The timed auction concept is very similar to the online auction model of eBay. However, unlike eBay, online penny auction sites usually increase the auction time with each bid placed.
Why Shop Online Penny Auctions?
Many people are attracted to penny auctions because of the tremendous savings they offer on brand new products. Penny auction sites offer electronics, computers, household items, gift cards, and more at rates as low as 5% the retail price. Much like a traditional auction, there is a possibility of another bidder bidding on the same item that you are. However, this is the thrill of the online auction game. Many people are attracted to penny auctions for the thrill they receive during the bidding process. Penny auctions have an advantage over other auction sites like eBay because all items are brand new and from a trusted source.