The Penny Auction Model
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Penny Auctions follow a diverse model than conventional live auctions, reverse auctions and seat auctions. In a penny auction, the auction participant pays a nominal fee, called a bidding fee, to participate in an auction. However, the one thing that penny auction have in widespread with standard live auctions is the last bidder may be the winner. The winning bidder pays the auction’s end cost plus any bidding fees and shipping and handling charges. In most situations, the merchandise costs much less than the suggested retail cost. In truth, some Penny Auctions sell merchandise as much as 90% the original retail prices.
Nonetheless, it really is very important to note that the bidding fees are non-refundable. Penny auctions have a unique way of working. With every single bid placed, the item’s auction price increases by a particular amount (frequently 1 to two cents) and anywhere from 15 to 30 seconds are automatically added to the clock. This provides all bidders an equal chance of winning. The last bidder to location a bid when the clock hits zero wins the auction. Penny Auctions create revenue from bid credits. This is how penny auction websites are able to sell merchandise at really low costs.
Some websites charges as little as $0.50 per credit, while other people charge up $1.00 per bid. However, most penny auction websites sell bid packages in denominations of 20, 50, 100, 200, 400, and 500. The more bid credits a user purchases, the far more of a discount he or she will receive. Most penny auctions auction off items including the newest electronics, computers, digital cameras and gift cards. Nonetheless, you will discover a few penny auction internet sites that only sell high end products just like Juicy Couture handbags and sterling silver Tiffany bracelets. Prospective bidders should really research all of penny auctions so they know which site is suitable for their wants.
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