Monday, August 22, 2011

Balanced View of Penny Auctions

Penny auctions don't get the right or fair treatment from the press. Usually. This is because it is much easier to find the unhappy minority and they make for better news articles. There are countless winners in the penny auction industry that are really good at what they do and stay ahead of the curve at all times. Perhaps penny auctions aren't for everyone.

In any case, it was heartening to see an article about penny auctions in Wall Street Journal which seemed to cover both sides of the story. Sure, the article talks of the bad apples - the ones that use shill bidding but it also talks of how the person referred to in the first sentence could win at penny auctions (after losing money initially, that is).

There are definitely red flags in the industry, which is why there is need for regulation but regulation to the extent of making sure everyone is fair. Like any auction, it is competitive bidding with skills and strategies, and people are free to participate or not. However, penny auctions, especially new penny auctions, need regulation in terms of being ethical.

The article also talks of the Entertainment Auction Association which may not have great success but is certainly on the right track. Many review sites cannot be fully trusted.

Here is another interesting tidbit from the article - there are 165 penny auctions in the US currently, according to Technology Briefing Centers so now you know how many penny auctions there are!

1 comment:

  1. This article is very useful. As per my information there are more than 1500 penny auctions that are popular on the internet. They might be from various countries and regions of the globe but many of them are generating great business. There are few companies like http://www.codespur.com/penny-auction-script that creates penny auction websites for a very low cost and their penny auction script is very precise and accurate.

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