| A penny auction is an exciting way to shop for | | | | cards, Paypal, bank transfer, and e-check. Once you |
| diamond rings, gift cards, gold coins, and other | | | | have registered and purchased bid credits, you can |
| merchandise at bargain prices. For shoppers that are | | | | begin bidding on items and obtaining merchandise at |
| looking to get the most value for their money, penny | | | | rock bottom prices. |
| auctions provide an opportunity to obtain | | | | Each auction starts with a minimum bid. Some |
| merchandise with as much as 99% savings off of | | | | auctions start as low as one cent. Each bid increases |
| retail prices. Traditional auction sites provide a fixed | | | | the price of the item by a preset amount (again, |
| time for the end of the auction. This allows a bidder | | | | some as little as one penny). Each bid also increases |
| to jump in at the very end and outbid you as time | | | | the time limit for the auction item. The last person to |
| expires. In a penny auction, however, each bidder | | | | bid when the clock hits zero wins the item. The |
| pays a small fee to place a bid. With each bid, the | | | | winning bidder pays the cost of the item, plus the |
| time of the auction is increased. That way, everyone | | | | cost of bids (in the form of bid credits which are |
| who wishes to purchase an item has an equal chance | | | | removed from the bidder's prepaid bid credit balance). |
| of receiving that item. When you win a penny | | | | Often, the amount the winner pays in bid credits and |
| auction, the savings is often significant over the price | | | | the final bid are well below retail price for the item. |
| you would pay for the item anywhere else. | | | | The savings and excitement of a penny auction are |
| Bids generally cost between 25 cents and $1.50 per | | | | the reasons people participate in them again and |
| bid, depending on the auction site you choose. Bid | | | | again. |
| credits are sold in advance, and a bid credit is | | | | To be successful in penny auctions, you must keep a |
| removed from your account each time you place a | | | | few things in mind. First, watch auctions for a while |
| bid. | | | | to see the bidding patterns of more experienced |
| To bid on items at a penny auction site, you first | | | | bidders. Second, start by bidding on inexpensive |
| must register. This process is usually short and | | | | items. Less competition means a better chance of |
| doesn't cost anything. Once you fill out a short | | | | winning the item. (Some sites, like escabid.com, offer |
| registration form, a confirmation email is sent to you. | | | | "beginner auctions" that are only open to people that |
| When you receive the confirmation email and click on | | | | have never won an auction before. This gives |
| the link in the email, you are confirmed by the site | | | | beginners experience with less competition. It allows |
| and can buy and place bids. | | | | you to get the hang of things without the fierce |
| Most sites also require you to purchase bid credits in | | | | competition found in other auctions.) Finally, place |
| advance. This offers you the convenience of being | | | | your bid as close to the end of the auction as |
| able to browse and bid on items without having to | | | | possible. This avoids driving up the price and the |
| worry about purchasing credits. You select the | | | | number of bids too early. Since you pay for each bid |
| amount of bid credits and pay. Common payment | | | | you place, this tactic can save you money on your |
| methods accepted by penny auction sites are credit | | | | next penny auction. |