Penny Auctions -- What's Good About Them?

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Penny Auctions -- What's Good About Them? Powered By Docstoc
					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.

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