Facts About Penny Auctions by docstoc93

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									Facts About Penny Auctions
By Kristin Marquette

However, is it really too good to be true? Do penny auctions really measure up to what they
claim - consumers can purchase products for up to 90% off the suggested retail pricing? Yes, the
larger sites are legitimate and users can win everything from jewelry to electronics while saving
hundreds or even thousands of dollars

Get all of the facts you need with this short guide.

How can a prospective bidder determine whether a site is legitimate?

Just like anything else, bidders should conduct the appropriate due diligence before joining any
auction site. In fact, prospective bidders should begin their penny auction journey by checking
out the site online. Does the site have secure payment processing and a solid privacy policy? If
so, then these sites may be worth investigating a little more.

How can a prospective bidder find out if the site uses bots or shilling bidding?

Bots are automated programs that mimic human bidders by making bids - to drive up prices, win
auctions, and make the site look like it generates a lot of traffic. One way for prospective bidders
to determine the site's traffic is by checking out the traffic analytics on a site such as Alexa.com,
Compete.com, or Quantcast.com. The analytics should reflect the amount of activity on the site.

All three of these sites provide consumers with up-to-date statistics. If a prospective bidder is
going to use Alexa.com to gauge a website's traffic, it is important that he or she understand how
the site works - the lower the Alexa.com the number ranked, the more traffic the site receives.

Shill bidding is another way penny auctions bidders and work in the same fashion as bidding
bots do.

What type of payment processing system does the site use?

Reputable penny auctions will use a payment processor such as Paypal.com.

What else should prospective bidders know?

Prospective bidders should be able to find reputable penny auction sites on major social media
platforms such as Twitter.com and Facebook.com.

Prospective bidders should also Google the site in which they want to join to find reviews,
comments, and other vital information about the company. Essentially, a penny auction site that
is willing to show its transparency is more likely to be an honest and reliable company.
Note - it is at the bidder's sole discretion to conduct the proper research before joining an
auction.

								
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