Penny Auctions - The World of the Auction Jumper

Penny Auctions - The World of the Auction Jumper

The name gives way to raised eyebrows at first, especially when you consider how online auctions work anyone can jump in. so why give a name to someone like "auction jumper"? This type of individual is something akin to an auction sniper depending on who you talk to and they are a beast that is unique to the world of the penny auction.

In any auction, be it a mainstream auction or a penny auction site, you have a number of people all competing for a specific item or product. During the course of the auction people come and go so there is a bit of a transient nature to the crowd. Throughout the auction, you're bound to have persistent people who stick it out to the end and slug it out with other more competitive bidders in an effort to win the auction.

With mainsteam auctions, bids are free so it really doesn't matter how much you bid, the goal is just to win and pay an amount less than the actual retail value of the item. You really don't want to over pay. The problem with penny auctions is that every bid costs you money and once you place a bid it's gone. While it may not be a big deal to join an auction late in a mainstream auction, it's something that's frowned upon in a penny auction.

The reason being is that everyone who has been involved in that auction, especially those that were in it for the long haul, have already made a substantial payment of bids toward getting the item. This is where Auction Jumping gets a bit ugly in terms of debates.

When one or more people have put a lot of bids in say for about 40-60% of the value of the item, then joining in at that point is called auction jumping. They've already depleted a bit of their resources by bidding and a newcomer pops into the auction with a fresh batch of bids ready to take over. Some people feel this is fair play, others feel it's dirty pool.

Bidders should realize that this is the inherent nature of the game. You could very well put everything you've got into winning an item, ready to go the distance, when someone comes along near the "end" and just hammers you into submission.

When someone comes in, it's hard to know who has placed a given number of bids, so there's really no way to know if you're doing the auction jumping or if you're just coming in like everyone else. That's all part of strategic planning to win the items you love. Do what you need to do to win.

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