Online penny auction site is useful for those people who have knowledge about the market value of certain products. However, even the inexperienced persons can opt for this site. Products won on penny auctions are typically brand new.
While each bid only raises the price by a penny, bidders generally pay somewhere between 50 cents and a dollar to make each bid, and each bid extends the time of the auction. So while the final price of an item worth $100 may be around $6, that final price represents hundreds of bids made at $.50 or more a piece.
When the clock expires, the highest bidder wins the auction. Savings often amount to more than 90% off the retail price.
The auctioneer receives income both in the form of the fees collected for each bid and in the form of payment for the winning bid. Even if the auctioneers purchase items for full retail value, the profit margin can be extremely large.
Unlike regular auctions, penny auctions:
1.Have bidding increments of $.01 (almost all do…hence the name “penny” auction).
2.Charge a certain amount to buy a single bid (usually $0.75-$1).
3.Increase the time left on the auction if someone bids higher (usually by 15 seconds).
4.Usually make it so that if you do not win, you still lose the money you spent on bids. However, some sites let you buy the item at a discounted price if you do not win.
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What do you do if a penny auction site defrauded you? Check the answers in this forum
Before you sign up, you need to do some research to determine whether the penny auction site you choose is going to offer you the best deal. This is important because every one of these sites functions of a model that is alike but deals with different price points and pricing structure for their auctions.
There are many sites that are fake and full of malicious spyware that could harm your personal computer or laptop. Type the keyword, "penny auction" on Google search engine and choose the site which is on top list of Google. This will ensure that the site is legitimate and has good online market reputation as well.
All rules of the penny auction aside, your first concern should be the best deal you can get on buying bids. For the best choice in finding great deals, aim for the low-cost-bid penny auctions.
At the heart of every pay-per-bid auction is the bid. Buyers purchase these bids in a pack with the number of bids in a package varying from site to site. The actual cost of the individuals varies widely depending on where you go. Some sites are as low as 25 cents; others can be as high as $1.50 perhaps even more. There is no additional benefit or guarantee from paying such a high price as there are numerous penny auction sites that charge far less and offer the same fairness guarantee.
The majority penny sites will take in a list featuring the delivery charges to make possible you to be familiar with much it will cost to catch your item to you. As this is your task once you come first the item, not that of the website.
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