Penny Auctions What you may not know Who does not want a great deal when buying the things they like? Some individuals use coupons, and await sales to get big-ticket goods like electronic devices and appliances at a reduced price, some go to penny auctions. This new kind of auction has become quite popular among budget-conscious shoppers and websites offering this service are growing in number. How do penny auctions work In this type of auction, the website operator posts items and you have to pay a non-refundable fee to put a bid. The buying price of auction items generally start at zero and each bid results to small increments to the product's price, normally a penny per bid, hence the name. Every single bid also adds time, from a seven seconds to a several minutes to a countdown clock. To win the item, you must be the highest bidder when the time runs out. Benefits and drawbacks of penny auctions With the chance of acquiring a $500 iPad for $3, it is extremely simple to grasp why plenty of people find engaging in penny auctions a rewarding activity. Many big-ticket merchandise are also provided, from gadgets, home appliances, jewelry, signature fashion accessories, and a whole lot more. Then again, penny auctions in many cases are better on paper than they are in reality. The reason for this assertion is that the auction process makes it highly probable to shell out a substantial amount of money but still not win the product. In many instances, you will find yourself paying more than the retail value of the product if you win the bid. Furthermore, a few penny auction websites use bogus bidders, which can be computer programs or people taking the role of shills, to prolong the auction and keep people bidding. Moreover, because the clock resets each time a bid is placed and there are many individuals to bid against, the auction process can be unpredictable and prolonged. A lot of participants in penny auctions also have reported software problems and undelivered products. Even with its drawbacks, it would be wrong to think that the penny auctions are all scams because many buyers have really saved a considerable amount of money by participating in these auctions. What to remember when participating in penny auctions The Better Business Bureau suggests that you learn exactly how the bidding works, set a bidding limit for yourself and actually follow it. That means, once you reach that limit, you should be ready to walk away. Additionally, because of the fact that there are penny auction sites that make use of bidding bots and shills, it is twice as important that you learn as much as you can about the website before bidding in them. Penny auction reviews can be very helpful in this respect.