Everything You Need to Know About Penny Auctions

By now you must have heard about the latest online craze known as Penny Auctions that enables everyday people to buy top brand products at prices way below retail. These switched on buyers are involved in a new way of shopping called Penny Auctions, where bidders strategize and outwit each other to get unbelievable deals and save hundreds or even thousands of dollars off the normal retail price of top label items.

So how do Penny Auctions work?

A prospective bidder signs up fpr a free account and purchases bids to use in the auctions. The cost to buy bids differs on each Penny Auction site, and is also different for each country. For example, in the US, a bid on a particular Penny Auction site might cost 60 cents, whereas visitors from New Zealand may pay 90 cents per bid. This is due to currency exchange rates. In the end, all visitors pay about the same amount for each bid. For the purpose of simplicity, all figures used here will be in US dollars. 

How much does it cost?

Penny Auctions are different from standard auctions in that you do not necessarily bid what you think a particular item is worth. There are several auction formats, but the general idea is to try to bid as late as you can in order to be the top bidder when the countdown timer runs out. The winning bidder then buys the product for the Final Price of the auction, which is often hundreds of dollars below the retail price. Now and then the winning bidder can win a product simply by placing the last bid, and have nothing else to pay to get the product, not even shipping!

Auctions start at $0.00, and each bid bumps up the final price by 1 cent. So an auction that receives 50 bids will have a final price of 50 cents. 

Auctions have a countdown timer, usually set to start at 10 or 20 seconds, depending on the Penny Auction site involved. The timer is bumped up by 10 or 20 seconds respectively each time a bid is placed. So that on an auction that begins with 10 seconds on the clock, if that timer has run down to 4 seconds and a bid is placed, the timer will be bumped back up to 14 seconds, and the countdown will resume from there.

The auction ends when the timer reaches zero seconds and no more bids are placed.

What happens at the end of a Penny Auction?

If you are the leading bidder at the end of a Penny Auction, you generally have two options.

1. Go ahead and pay the Final Price of the item, as determined by the auction, at which point the product you bought will be shipped direct to you. In some cases, you do not need to pay anything, and your item will be shipped to you automatically;

2. OR, you can swap the item for more bids, and then bid for another item.

Who is eligible to participate in Penny Auctions?

The specific terms and conditions of each Penny Auction site vary, but generally speaking the criteria on each site are pretty much the same.

Here are some general guidelines.

You need to be 18 years old or older and able to legally enter a contract. This is a standard rule for any online auction site. What this means is that if you are 17 years old you may not join, but once you turn 18, you may.

Only people living in approved countries may bid. Most Penny Auction websites are only viewable in the counties where participation is allowed, i.e. The USA, Europe, Australia and New Zealand plus others. For various reasons, some countries are currently excluded from most Penny Auction sites.

Each Penny Auction site has their own rules for bidding, so make sure you read them prior to signing up.

How to Keep Safe When Using Penny Auction Sites.

As with any type of internet shopping, it is important to protect yourself when signing up to Penny Auction sites. Only join sites that specifically guarantee that they do not use any automated bidders to manipulate auctions, and also those that do not allow their own employees and their families from bidding in auctions. It is very important to protect yourself against scams. Sticking to the larger sites is the best way to do that.

So, next time you are thinking of buying some famous brand products on the internet but are sick of eBay, consider the benefits of using Penny Auction sites, and have some fun while you save hundreds of dollars on great products.

Guest Blogger: Michael Nunn is a former eBay user who now believes in the power of Penny Auctions. For more information on Penny Auctions, visit 2bit.co - The Source of Everything

How to Take Winning Ebay Auction Photos

Though there have been millions of items listed on Ebay, there is one characteristic shared by most winners: they have a good photograph. Ebay is a virtual marketplace, but buyers still like to see what they’re paying for. Auction listings that include quality photos reassure the buyer that they are making a good purchase. That means more money is your pocket, just because you snapped a picture!

But all Ebay photos are not created equal. Here are a few tips for making the most of your item photos.

First, make sure your item is in top shape before photographing it. If your item is dusty or stained, buyers won’t want to make the purchase. Before you take the picture, wipe down any merchandise with a hard surface. Wash clothing or other soft items. You want the merchandise to look its best.

If a product is worn or has a few scrapes on the surface, carefully document these through your item description and photographs. It might seem counter-intuitive to point out flaws in the item, but it pays off in the long run. You don’t want to get a reputation for dishonesty. Plus, minimal damage rarely puts off Ebay buyers, particularly if the item is rare or discontinued. They’re looking for a good deal. As long as the product is in working condition, a little wear and tear is often deemed acceptable. For instance, the picture of the GeoSafari unit below shows that the box is very worn, but the unit itself is clean and in working order.

Here is an example of a photo I uploaded to a website when I was selling a Franklin Library edition of "The Agony and the Ecstasy". This was before eBay's own photo hosting allowed for enlargements. The item description advised the buyer to click on the photo to see the enlarged version so they could see for themselves if there were any flaws in the cover.

Another thing your buyers will want to know is if an item is in good working order. The GeoSafari unit below was photographed at an angle showing that the lights were on, indicating the unit was working. You can also show older console video game cartridges are operating by taking screen shots of the game in play.

When setting up your photography session, aim for natural light and good contrast. Take pictures near a window when the sun is shining. Avoid using a flash if you can; flash photos often turn out too bright and detract from the item’s detail. For best results, light products should be photographed on dark backgrounds, and vice versa. Take pictures from two or three different angles if possible. Do ensure that the item is displayed by itself, unless it’s a part of an entire lot for sale. And when you take the picture, get as close as you can without distorting the image. You want the item to fill the camera screen.

Take care when selecting a surface and background on which to display your item. Too-reflective surfaces can reveal the photographer’s image, and messy or busy backgrounds can distract from the item. For a professional look, use a very simple surface and background that show off the item well.

Many Ebay sellers use Photoshop or similar programs to clean up their photos before listing. This is fine, as long as the resulting picture is still representative of the item. Try to keep colors and hues as close to the original as possible. Photoshop can be used to lighten up too-dark pictures or to sharpen images. Save the photos as 400 by 300 pixel JPEGs of the highest quality. That way Ebay won’t reduce their resolution too much when it resizes the uploaded images.

Ebay sellers should consider using Ebay’s built-in image hosting service. It’s cheap and reliable, and it’s subject to Ebay’s technical support. They let you list your first image for free. Every successive image costs just a few cents. This convenient service is worth investigating.

It’s long been said that a picture is worth a thousand words. On Ebay, a picture can be more valuable yet: it can bring you buyers.