Online Penny Auctions: Discovery or Disappointment?
Since 2008, penny auction sites have continued to inundate the Internet. With hundreds of new penny auction sites introduced annually there appears to be no end to the growth and development of the latest trend sweeping across the Internet worldwide. Offering an opportunity to purchase new merchandise, including the latest in technological advances for pennies on the dollar, penny auctions continue to draw hundreds of new customers daily. Appearing attractive in nature and content with alluring qualities that are mesmerizing and hypnotic, participation in penny auction sites may be the discovery or disappointment of a lifetime.
Homework
In depth research into the operation, practices and procedures regarding partaking in penny auction sites is highly recommended. Inexperienced individuals that fail to comprehend the logistics of penny auctions are often those that fail in the bidding process with disappointing results. Clear and concise information is available at all legitimate penny auction sites (terms and conditions) and should be fully understood before proceeding. Seeking out those penny auction sites that have a reputable background with a sound, stable business background with applicable regulatory licensing and approval is recommended. Conducting the proper research on penny auction sites is well worth the time invested.
Account Establishment
Establishing an account is mandatory at all online penny auction sites in order to commence with the bidding process. With ease of simplicity, account establishment can be completed in a matter of a few minutes. For novices, establishing an account at more than one online penny auction site is not recommended. In order to establish an account, the use of major credit cards is required which are used to purchase a predetermined bid package amount starting at 50 individual bids. Maximum amount of bids that may be purchased is dependent on the website selected. For the majority of online penny auctions, each individual bid has a monetary value from twenty-five ($.25) cents to one-dollar ($1.00). Bids deplete quickly. Always monitor the bidding process closely.
How Penny Auctions Work
Typical, although varying to some degree, penny auction sites offer new merchandise starting at zero ($0) dollars. Subsequent bids placed on the merchandise of choice increases the overall cost by one cent per bid. Depending on the merchandise selected, bid increments may increase by more than one cent per bid. Clocks set a time frame for a selected auction vary in time frames which monitor the overall bidding process. Each time a bid is placed, the clock may increase by as much as ten seconds (10 sec) or more, depending on the auction. Sophisticated electronic auctions commonly receive the most attention. Novices are encouraged to bid on items of lesser value until familiarity with the bidding process is further developed, see our penny auction tips section for more details.
Potential Risks
Online penny auctions often involve an element of risk. Novice bidders are encouraged to seek out experienced and frequent users of online penny auctions guidance for further advice. Online penny auctions are addictive, exhilarating, exciting and persuasive. Spending more than present income levels dictate is commonplace with possible future financial ramifications. Regardless of experience with online penny auctions, set limits on spending and adhere to them closely. Online penny auctions are highly competitive with hundreds, if not thousands of bidders bidding on the same selected merchandise of choice. Closely monitor all bids and bid balances to avoid overspending with loss of bids previously placed.
Crucial Timing
Online penny auctions are offered twenty-four (24) hours a day, seven days a week. Prime time bidding, or bidding on merchandise between the hours of 6:00-12:00PM receives the highest amount of bids. Weekends, regardless of time should be avoided if possible. Bidding on merchandise during “off peak” hours including, however not limited to early AM hours often produces the best results and should be an integral part of any online penny auction strategy for optimal success. Close monitoring of all online penny auction time clocks with bid placement near the end of the auction may increase overall success rates.
Helpful Tips
Development and implementation of an online penny auction strategy is extremely advantageous in a winning bid. Tips to consider when selecting an online penny auction site include:
- How much traffic the site receives.
- What hours tend to have the least amount of bidding.
- Who you should avoid bidding against.
- Which auction items would be the best to acquire.
Experienced bidders often take advantage of novice bidders with aggressive bid placement which is extremely effective. Frustration of the novice often leaves an open invitation to the more experienced bidder, leaving the novice disappointed and down-hearted . To date, there remain three distinctive types of bidders. They are as follows:
- Hopeful: Bid on auctions early with the realization that auctions open and close without intense competition.
- Conservative: Look to “outlast” all other bidders. Use bids sparingly nearing auction completion causing all other bidders to consume available bids.
- Aggressive: Determined to outbid all others regardless of overall costs involved. Often referred to as “bullying”.
Seeking out additional information regarding the competition in an online penny auction produces more efficient bidding practices with successful auction results.
New Features of Online Penny Auction Sites
With competition remaining at all time record levels between online penny auction sites, new bidding features are continually added to entice new customers. With recent introduction of auto bidding participants place bids on an absentee basis, without twenty-four hour (24hr) monitoring of the computer. Although “auto bidding” is an attractive feature to online penny auction sites, this lucrative feature may not be suitable for novice bidders. Always review all policies and procedures of the selected online penny auction site before selecting this feature. Additional features are also available to selected members of online penny auction sites that may not be offered elsewhere.
Commitment
Commitment to any venture is dependent on the amount of effort applied. Placement of one bid on merchandise expecting immediate results will often produce less than desired results. Where persistence, knowledge and total comprehension of penny auction sites remain an invaluable tool, common sense, integrity and intestinal fortitude are attributes which will lead to a lifelong discovery, without additional and continual disappointment.
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