About This Site and Penny Auctions

Anyone who uses the internet has heard of bidding or auction websites.  There are several different types of auction sites, each with a separate way of buying and selling.  The penny auctions have become quite popular and once you understand how penny auctions work, you can come across great deals as a buyer or make huge profits as a seller.

Typically, a seller will list an item for a fraction of what it is worth.   Let’s use a laptop computer as an example.  You have a laptop that you are no longer using or maybe you have upgraded and you want to sell your old one.  If you list it with a penny auction you start the bedding at one cent, but you charge everyone $1.00 to bid on the item.

If the bidding ends at $25.00 one would think that this is not a good deal, but wait; let’s say 200 people paid $1.00 each to bid on your laptop.  You keep the $200.00 and the $25.00 to the highest bidder.  When you add it up $225.00 is fantastic profit for your old laptop.

Some sites require you to buy bidding packs or credits.  You simply register, purchase your bid pack and start bidding.  This is a bit different from the typical sites where you place a bid and if you win, you are required to purchase the item through a system or with a credit card.

Most of the one cent bidding sites are legitimate but the sellers are not really in the business of selling.  For instance, penny auctions can be used to build mailing lists for future use. While these are true auctions the sole purpose is to find individuals in a particular niche to sell higher ticket items later on.

Penny auctions are also used to promote a new business venture.  For instance, if a company is gearing up for a grand opening and they may feature their product (s) in a penny auction for publicity.  Even if the item sells for pennies, they have used the auction process as a marketing tool for half the cost of traditional marketing.

As a seller, there are a few things to pay close attention to.  The fees for listing your merchandise vary from site to site.  In some cases, there is a fee to list the item and another fee once the item is sold.  This is usually a percentage of the final selling price.  These fees should be factored into your total profit.

As a buyer on penny auctions, it is important that you know how the bidding process works.  You should also know the shipping costs, return and warranty policies before bidding.   Most auctions have a feedback system where if you do not complete the sale the seller can leave negative feedback.  If this happens frequently, the site may not allow you to bid.

Online bidding sites are a great way to buy and sell items.  Understanding how each individual site works before you register will ensure a smooth selling or buying experience.