subject: Penny Auctions vs Reverse Auctions [print this page] Penny Auctions vs Reverse Auctions Penny Auctions vs Reverse Auctions
In a time of recession it is becoming more and more important to get a good bargain and the most out of your money. With this there is increasing demand for auction sites online, ranging from sites such as eBay, to penny auction sites and in addition to this even reverse auction sites.
Penny Auction sites are becoming increasingly popular, the idea is to bid on items, where there is a cost to bid. With the penny auction site the users bid on an item, which increases the bid by a penny at a time, it also increases the length of time the auction will run on for. The last person to bid on the item wins it, although it sounds simple it can be difficult to win due to aggressive bidders, potential online scams and the expense of bidding on items, however, it can be very rewarding for those who do manage to get a strategy.
Reverse auction sites are also extremely popular, however, the concept behind this is very different. In these sites the aim is to place a low bid which is completely unique. The price of the item will inevitably come down and the winner will be the person with the lowest unique bid.
One advantage of reverse bidding is that it is sometimes possible to place multiple bids for different amounts. Reverse auctions have the potential to make great savings, but similar to penny auctions there is a cost for placing a bid and it is important to set a limit so as not to get carried away.
