How does Penny Auction work?
Penny auction which is characterized by the low prices for auctioned items and high profits for the operator is the “win-win” concept.
The price for auctioned items starts at zero and then increases with each new bid. The price increase is usually set to a minimum amount. To place a bid however, the bidder must pay a fee to the operator. The price of one bid is higher than the amount of increase.
Additionally, each new bid resets the timer to allow others placing their bids, too. The most active bidding begins when the auction timer almost expires.
Put simply, penny auctions are websites where customers cast non-refundable bids in auctions which increase the final auction price by a small, set increment. The last person to have bid when the timer expires wins the right to purchase the product, which is typically priced much lower than its retail price.
Bids cost just $0.30 and can be purchased in bid packs at the Bid Store or in the Bottom Bar. These bids are pre-paid and stored in the Bid Credit History section of My Bids. Each time you place a bid; it will be deducted from your remaining bids, and will increase the price of the auction by one cent. No more than 30 seconds is added to the timer whenever a bid is placed. This allows another user the opportunity to bid if interested.
And also just like a traditional auction, you win by being the last to bid. Once you pay the final auction price and shipping costs, the item is yours!
Here's the part that isn't like a traditional auction: If you don't win, you can't reclaim the bids you place. BUT, because we never want anyone to walk away with nothing, we offer a Buy Now feature on ALL of our auctions! When you use our Buy Now feature, we subtract the cash value of the bids you’ve placed (excluding voucher bids) from the value price of the item, and you pay the difference. It's just like buying the item at retail price! So at least you had a chance at getting it at a discount, eh?
Let's say you spend 30 bids trying to win a $30 valued product, but you don't win. Your 30 bids are worth $9 (30 x $0.30), so if you choose to use the Buy Now, you will only pay $21 more for the product. Please note that this offer applies to real bids only, and that voucher bids to do not apply to the Buy Now option.
How does bidding work?
You have two options when it comes to bidding. The first is to simply click the 'Bid' button. Assuming there is no technical malfunction, your bid will be recorded and your username will be shown as the highest bidder. To maintain the highest bid, you will need to keep clicking the ‘Bid’ button whenever another user outbids you.
The second option is to use the Bid-O-Matic feature. We developed Bid-O-Matic to enable you to participate in an auction while you are away from the computer. Bid-O-Matic will enter bids for you based on limits that you set— how many bids you’re willing to spend and when to start placing them.
How does the Bid-O-Matic work?
Bid-O-Matic automatically places bids for you in a more efficient way than other auction sites. Bid-O-Matic even lets you bid if you're not logged on to our website! Using Bid-O-Matic guarantees your bid will be placed in the last 20 seconds. You'll never have to worry about losing your Internet connection or getting distracted in the final seconds because Bid-O-Matic will bid as you instruct it to.
Bid-O-Matic will bid whenever the timer drops below 20 seconds, though it's up to the Bid-O-Matic exactly when it will place that bid.
Bid-O-Matic can be set up with a minimum of 3 bids and a maximum of 150 bids at a time.
Bid-O-Matic will start to bid for you as soon as you click the 'Activate' button, unless there is less than 2 seconds remaining on the auction clock.
Bid-O-Matic may be deactivated at any point during the auction. Please keep in mind that the number of deactivations will be limited to minimize server load.
If an auction ends, all unused Bid-O-Matic bids will remain in your account.You can only set one Bid-O-Matic at a time per auction.
Bid-O-matics cannot be activated on auctions with less than 2 seconds remaining on the auction clock.
How to Use:
Description + Gallery: https://salesonlinebusiness.com/project-3-penny-auction
In the Bid-O-Matic area on the right side of every auction page, simply enter the Bid From price (which is the price you want the Bid-O-Matic to start placing bids at) and the number of bids you're prepared for it to use. Then select 'Activate'.
Sit back, relax, and watch your Bid-O-Matic do all the work for you.
What about when two or more Bid-O-Matics are set to bid in the same price range?
If there are two or more Bid-O-Matics bidding in the same auction, a bid will be placed sometime in the last 20 seconds just like if there was one Bid-O-Matic bidder. Only one bid from a Bid-O-Matic bidder will be placed at a time.
The exact time that Bid-O-Matic bids varies – it can be anywhere between 0 and 20 seconds. It's randomized to prevent other bidders from knowing if a Bid-O-Matic is in play.
Please note that while the Bid-O-Matic function is offered on many of our auctions, it is not offered on all of them. If you do not see it on the auction page, you might be looking at an auction where Bid-O-Matic is not available.