Penny auctions sell everything from coffee makers and grinders to designer wallets and handbags for extremely low prices. However, it is important that bidders understand how the bidding process works and that they are prepared with a set of proven winning bidding strategies.
Some people say that the automatic bidding feature in penny auctions is superior to manual bidding; however, this is not always the case. On some sites, users can control the amount of bids placed and turn off the auto-bidding feature before all bids are used, while other sites will place all bids without giving the user any control.
Automatic Bidding vs. Manual Bidding
Automatic bidding is convenient and advantageous to users who will not able to place bids at a certain time (i.e. the user is at work or at school and is physically away from the computer or there is a power outage). This feature also works well for those long auctions; however, this feature should be used carefully because it is easy to use more bids and go over budget.
It is important to understand that manual bidding gives users more freedom to place bids than automatic bidding does. In fact, manual bidding is a strategic maneuver as users can place a bid in the beginning of an auction to indicate their interest while at the time it can be used as a "jump" mechanism, meaning that users can jump into an auction at any moment and place a bid. Users can ultimately place bids within seconds of the auction's end. Manual bidding also allows users complete control over the amount of bids they place and how much money they really spend.
Note - Before using the auto-bidding feature, it is recommended that users have an intermediate skill level and feel comfortable bidding against those more seasoned bidders. As for novice bidders, they should stick with manual bidding during the first few penny auctions.
