What about penny auctions?

Overview:

Penny auctions are popping up all over the internet, in just about every language and in every country in the world.

The products being auctioned vary greatly by the site and the country of origin.  Upon visiting these sites, one can usually guess what country the auction house is located in by the products listed and the currency used.

The most common products are electronics, phones, video game products, and unique toys, tools and gadgets.

Most penny auction houses will not ship products out of the country of origin,  so be sure you can receive products before spending your money.

Next, learn the ins and outs of how the different types of auctions work.  The auction houses will use multiple types of auctions with different unique variables, because each penny auction house is vying for your participation in their auctions.

The basic penny auction works quite simple.

  • Basically,  users are required to pay a specified sum to pre-purchase bid packs in order to bid on an item.  The  auction houses sell the bid packs in different sizes, 25, 50, 100, 250, 500, etc., and the bids are usually $0.50 to $0.75 each.
  • It is important to know that the purchased bids are usually non-refundable.
  • You click the bid now button under the item you are interested in winning and this process is repeated until the auction is won.
  • After each bid, the bid amount for the item increases, usually by one penny.
  • In many popular penny auctions, when a bid is placed (especially in the last 10-20 seconds) the deadline for that specific auction is extended.
  • The winner will be the last bidder when the clock/timer runs out.

Source:

Several members of the Neon Cool Kids Yo Review Team are active members of several penny auction sites, and have won many cool items at very reduced prices.

  • One of our members has won several penny auctions for gift cards.  The best deal received was a $200.00 WalMart gift card for a total price of $15.67.
  • Another team member won a childs learning computer for $3.84.

Pros:

  • You can buy products you would normally buy at a store, have fun doing it, and maybe get a deal.
  • You can win great products at fantastically reduced prices.

Cons:

  • You can actually get caught up with the bidding process and pay more than the retail price of the item at the end of the auction after the costs are added up.
  • Some auction houses cheat and use fake or paid bidders to run up the bidding.
  • Some auction houses take several months to ship products, if at all.

Conclusion:

Penny auction houses are the latest craze on the internet and there are new ones opening all the time.   Some are good and will give you an enjoyable experience and others will just scam you.   It is important to read reviews about an auction house before you buy.

We give a ‘thumbs up’ to the overall penny auction concept and will review the auction houses we have visited individually in sub-posts to this one.

 

Filed under: Penny Auctions

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