Most Penny Auctions are timed, pay per bid online auctions that offer brand new items, such as big screen TVs, gaming consoles and gift cards.
- With traditional Penny Auctions, the price starts at $0 and each bid increases the auction price by $0.01.
- Each bid placed costs money, usually around $0.60 to $1.00.
- Auctions are timed and have expiration dates.
- When someone places a bid near the end of the auction, the auction time is extended, usually by about 15 seconds to avoid sniping by last minute bidders.
- The person who placed the last bid when the auction ends wins the item.
- When you win an item, you usually have the pay the final auction price in addition to shipping and handling.
- There are several flavors of Penny Auctions, each with its own twist. With some, you have to have the lowest unique bid to win (Unique Bid Auctions), with others, the price starts high and starts dropping each time the price is revealed (Reveal Auctions). Check out our article on What are the different types of Penny Auctions for more information.
The graphic below explains in more detail how a typical Penny Auction works, courtesy of GoBid , one of our Featured Penny Auction sites.
|
