Penny Auction Websites in the U.S

Penny Auctions in the United States are a new fashion amongst the retailers. Offering huge discounts on almost every product that has been listed, these websites are almost like a treasure chest where you can get goods at the cheapest possible rates. So I think it is imperative for all of us know more about the Penny Auction Websites.

How They Work:

• Each bidder on the website must pay a certain amount to purchase the bids that will be used on the products.
• Once you have purchased the bids, you can bid on the product of your choice. The bidding will increase the item price by a penny or two. At times, an additional second may be added to the countdown clock when an additional bid is made.
• Once the countdown clock runs down to zero, the last bidder wins the auction.
• You can also use the automatic bidding feature on certain websites which help you to do your work while also participating in the bidding process. You can fix the upper limit in terms of bids or item price.

How They Earn:

• The cost of each bid is, on an average, between 50 – 60 cents. As each bids cost a lot of money, the websites can afford to offer huge discounts to its customers.
• As an example, one website recently sold an Apple iPod Touch 32GB worth $ 250 for a few cents less than $ 19. But in the process they collected more than $ 1,100 in bid fees.
• These websites prefer to call themselves ‘entertainment shopping sites’ as the thrill of bidding adds to the shopping experience at a discounted price. Therefore, it is important to not get too carried away while bidding.

My opinion:

In my opinion, the penny auctions in USA are actually a brilliant idea. Providing high-end stuff to the public for minimal costs can only be good for the customers and for the businesses as well. Moreover, the fun aspect of bidding has already started drawing a huge number of customers to the penny auction websites.

But on the flipside, some customers are complaining of spending too much on the websites while the products are not being delivered. Therefore, I consider it important to regulate the functioning of the penny auction sites while also promoting them to provide goods to the customers at the attractive rates that only their business model can afford to sell.

Marty Ron is a freelance writer, technical writer, and editor of a leading magazine. He writes for many online E-commerce websites. He also has been writing blogs on various forums.