One of the first questions we receive whenever everyone ask about penny online auctions is, “How Do Penny Auctions Function?”. It's a very important question because there are many misconceptions. Primarily, people presume penny auctions operate on a similar auction format because websites such as eBay. The eBay auction format is an entirely different design compared to penny auction model.
We will review a few fundamentals right here however we also have posted a good tutorial video clip made by QuiBids which sums it up nicely. (Note: Not all penny online auctions web sites have a Buy It Now function).
How Penny Online auctions Work
1.Purchase Bids -- This is the key distinction in the ebay vs penny auction design. Users buy prices for bids that are used to bid on an auction item. The value associated to the right in order to bid is just what maintains the values very low and provides an opportunity for smart users in order to gain great deals. The price of a bid varies from site in order to websiteyet most average with the Dollar.60-%.Seventy five per bid range. Various websites offer special discounts with greater bid packs
2.Bidding For An Object -- After you have your own bids it's time to discover a good auction you want and begin putting in a bid. A lot of penny auction websites begin each and every auction from $0 and then the cost of the product climbs up by the pre-defined incremental value whenever a bid is positioned. Based about the penny auction the cost an item goes up is going to be 1,2,5,10 or 25 pennies whenever a bid is placed. This incremental value is typically evidently apparent upon each and every auction. The 1 penny rise continues to be the most common.
3.Last Bidder Is the winner -- Just like a lot of auction formats the last bidder wins the product. Using the penny auction design a period counts right down to Zero. The actual timer will be extended whenever a new bid is placed, typically under 10 to 20 seconds. There are many deviations from site on site on how much time is added to the clock but the concept is common. Some sites will add as much as 30 seconds towards the auction and others have turbo features where just Five seconds is put into the time.
4.Pay For The product -- As soon as you’ve won the auction you will typically have the ability to pay for the product instantly and supply your delivery info.
5.Identifying The Total Cost -- Using the penny auction format your own total cost to have an auction item is the price of the bids you placed as well as the final auction worth.Example: A person received the $100 gift card with regard to $13.50 and used 30 bids during the auction.Your own cost for that $100 gift card Equals $13.50 $18 (30 bids * $.60/bid) = $31.50
6.Purchase It Right now -- A few penny auction sites offer a Purchase This Right now function for buyers that did not earn the actual auction. This feature supplies a really low risk opportunity, especially if you were already prepared to pay retail price for the product. The majority of websites that provide a buy it now function with regard to dropping buyers will credit score back again the need for the actual bids positioned for the list worth of the item.Example: A person used 30 bids which cost you Dollar.Sixty each on a $100 product and lost. With most Buy This Offers you're going to get a credit score for the worth of the actual lost bids if you wish to buy the item.Your price to buy the merchandise could be: $100 - $18 (Thirty prices for bids - $.60/bid) Equals $82