subject: Read this before bidding on Penny Auctions [print this page] Read this before bidding on Penny Auctions
Penny auctions certainly are a recent development on the web. They operate in a way much like eBay because they provide items for auction and the open public is actually welcome to bid. They vary from other sites in that you can choose from packages of bids for customers to use in the auction; the main difference, is always that winning bids at penny auctions usually are a lot lower than normal retail price.
The temptation to do a bargain is often tempting to pass on. The sites always display items that have just been sold, hence showing you that you can actually buy stuff 15-20% of retail price. Brand electronics, smart phones, notebooks and HD television sets are among the items being auctioned. The bidding process can be frustrating at times, and can go on for ever as time is added to the bids every time a new bid is done.
Get all the information you can before you start to bid
Same as with live auctions, there is always the nervous aspect. People may enter the bidding process just for driving up the prices, you never know. These auctions are easy to launch so they may attract the unscrupulous. Consequently, winning bidders may find themselves victimized by credit card fraud after the transaction, or goods may never be delivered. Some penny auctions accept PayPal, which can be interpreted as a good sign as there are protections for buyers.
The good news is that there are a large number of legitimate sites for penny auctions. The entire industry should not be tarred by the behavior of a few. However, a buyer's enthusiasm for a good deal has to be tempered with the reality that pitfalls may be abundant. A buyer can Google the name of the site followed by the word "scam"; this will bring a variety of response by those who have visited that particular web site. There will be positive as well as negative comments.
Check the fine print on the web site; it should be easily available. Verify whether the site refunds the amounts bid by the losing bidders. Check to see whether the site accepts PayPal or a similar third party paying entity. It would be a good idea to avoid those penny auctions that accept only a credit card or an electronic check, by being well educated about a site, you can join the bidding without that unsettling feeling that you are setting yourself up for later problems.
