Below is a quick reference for commonly used terms and classifications throughout the site, grouped according to where you're most likely to see the terms:
Commonly used words and terminology in Penny Auction Reviews
The name of the Penny Auction site.
The web address of the Penny Auction site, clicking on it will take you straight to the site.
The number of monthly visitors to the Penny Auction site. The source of the data is Compete.com, a company that tracks website usage throughout the Internet. We include this metric to help you get a sense of how big or small a particular Penny Auction site is, in terms of potential competing auction bidders.
AUCTION COST AND PAYMENT
Cost per Bid
Cost per Bid is the amount each bid costs when participating in an auction. Penny Auctions are pay per bid auctions, where each bid costs money. In order to bid, you need to purchase bids, which are sold in bid packs. The amount listed is the cost per bid assuming you purchase the smallest bid pack available. Many sites offer discounts when purchasing larger bid packs, thus your cost per bid may be lower if you purchase a larger bid pack. Be sure to also check the site's Terms and Conditions to see if you purchased bids expire after a certain time.
Free Bids at Join
Free Bids at Join is the amount of free bids given to a new user. Some Penny Auction sites offer first time users free bids to get started right away, some don't. The free bids often expire, so be sure to use them quickly. To see when the free bids expire, be check the site's Terms and Conditions.
Payment Method
Most Penny Auctions accept major credit cards and PayPal as a payment method for purchasing bids. If you have a preference in terms of how you like to pay, be sure to check whether your preferred payment method is supported by a site.
AUCTION DETAILS
Auction Type
There are many types of Penny Auctions, each with its own twist on this popular form of entertainment shopping.
- Penny Auction: We refer the the most popular form of Penny Auctions as simply Penny Auction. These are timed, pay per bid auctions, where each bid costs money. The auction price usually starts at $0.00 and each bid increases the auction price by $0.01 or another small amount. When the auction time expiration reaches around 20 to 30 seconds, a new bid adds a few seconds to the clock, extending the auction. When the auction time expires, the person with the last bid wins the item at the final auction price.
Ship to Country
Ship to Country lists the countries to which the Penny Auction site can ship products you've won. Some sites only ship to United States, some can ship worldwide. Before joining an auction, be sure to check whether the site can ship to your country, by reviewing the site's Terms and Conditions.
Auction Features
There are many types of auction features offered by the various Penny Auction sites. Be sure to review the various features to help you find the right auction to participate in.
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Buy It Now: Some Penny Auctions give you the option of purchasing the item you are bidding for prior to the expiration of the auction or if you've lost an auction. While it's a nice feature, don't expect to walk away with a huge discount on the item. The cost is usually the retail price of the item. Some auctions will credit the value of your lost bids to lower the purchase price, see Use Lost Bids below. Buy It Now feature is referred to by different names on various sites, such as Swoop It Now or Buy Now.
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Auto Bidder: Some Penny Auctions allow you to bid automatically. You can set how much you're willing to spend in total, in what increments to bid and the Auto Bidder takes over. Think of it as cruise control on your car. This feature is handy when you are unable to be in front of your computer to participate in an auction, for example, when you need to take a short break. Some people like to use them for the intimidation factor to show other auction participants that they mean business. Be sure to spend some time thinking about the settings, particularly, how much you're willing to spend. An auto bidder can spend your budget in a matter of minutes in hotly contested auctions. Auto Bidder is referred to by different names on different sites, such as Bid Butler, Bid Buddy or Future Bidder.
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Use Lost Bids: Having spent a lot of money bidding on an item only to lose the Penny Auction stings. To lessen the pain, and give you a chance to make up some lost ground, some auction sites will let you use your lost bids in a variety of ways. Sometimes you can get a credit towards the retail purchase price of an item, if the site has the Buy It Now feature (see above) or you can get a credit towards the auction price of an item you win next. Be sure to check the site's Terms and Conditions on how you can Use Lost Bids and for how long.
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Beginner Auctions: Beginner Auctions are only open to users who have never won an item on the Penny Auction site. Auction users who are beginners are often easy prey for aggressive, experienced users, ruining the auction experience for beginners. Begginer Auctions are designed to allow rookie users to get a feel for how the auctions work, without the stress of competing with others who are more experiened.
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Charity: Some Penny Auction sites provide a certain percentage of their auction revenue to one or several charities. Some sites host auctions where all or some of the auction proceeds go to a charity of the user's or site's choice, or they may provide a small percentage of their overall revenues to a charity. To find out more, be sure to check the site's Terms and Conditions.
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Free Shipping: Most Penny Auction sites charge you a shipping fee on the top of the final auction price (and of course the cost of your bids). These fees vary by site and shipping country. However, some sites offer free shipping, which can be a great deal if you've just won that huge LCD bigscreen TV. Be sure to check the site's Terms and Conditions on shipping charges, if any.
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Win Limit: Some Penny Auction sites limit the number of items you can win in a certain period of time. Win Limit feature is designed to give everyone a chance to win and avoid a one sided bidding experience where a small number of aggressive users can keep winning items. An example would be a Win Limit of 5 wins per 30 days. Be sure the check the site's Terms and Conditions for details on Win Limits.
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Free Bids: Free Bids are a great feature because everyone loves free stuff. Many Penny Auction sites offer free bids when you first join to encourage you to start bidding. You can also earn free bids by referring friends to the site, friending the site on Facebook or other social networks, or sending in a video testimonial of your experince with the site. Some sites give you only 7 days to user your free bids, so be sure the check the site's Terms and Conditions to see how much time you have to use your Free Bids.
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Trade Items for Bids: Penny Auction sites with this feature allow you to trade in an item you've won for the full retail price of the item in bids. Maybe you got caught up in the excitement of the auction and realize that you don't really need a state of the art blender which you've just won. Trade the item in for bids and use those bids for something you really want next time. Remember, you get the listed retail value in bids, so if you trade in a $150 blender, you get $150 worth of bids. Now that's a great feature. Be sure the check the site's Terms and Conditions for details.
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