Sunday, December 2, 2012

Overview of Penny Auctions

This is a Guest Post by Adeel of LimitlessBids

Summary 
In this article, we will be comparing the difference between regular online auctions, and penny auctions. We will also find out whether or not it is always a good decision to use one service or the other and lastly, we’re going to figure out how we can earn a profit from using both penny auctions and traditional auctions.

I know that the majority of the people that will be reading this already understand how penny auctions work, let me start off with a little review in case we have some new users on the site. When bidding in a penny auction service, you are going to have to pay for the bids beforehand. The price per bid ranges from between.50 to $1.00 a bid.

Unlike traditional auctions, every single time a bid is placed, the timer is once again restarted to allow for another bidder to bid. Now, if you are not the last person to bid on an item, you in essence helped pay for someone else's merchandise, a problem that does not exist in traditional auction houses. However, there are some companies such as that allow all users the option of using the buy it now option for any product AND having their bids cost count towards that amount! Check and make sure that the buy it now price that is listed on the penny auction site you are using is comparable to other online retailers. Sometimes penny auction companies will try to overinflate their prices so they can turn an even larger profit when you “Buy it now.”

Another problem that has plagued the penny auction world is that there are groups of people, who combine their funds, and purchase very large amounts of bids and effectively bid you off of whatever item you are interested in winning, making it very difficult for you to win as a new user. Some websites however do have a winner tiered limit, for example, only 1 win for any user over $500 in a week, or month, etc. This will ensure that there is a fair playing field for everyone, and so that everyone may win products that really are for far less than retail.

Lastly, look for a penny auction website that is not interested in reaping huge profits, but instead look towards companies that will keep their profit margins low. How do you do this you ask? Just see how many free giveaways they have, free bids are good but free items are just amazing. For example, zBiddy.com offers you the chance the spin their wheel and win between 1-10 bids for FREE, this can be done daily. Another website LimitlessBids.com actually just gives away items, like the Samsung Galaxy S3 they have up for this month. There is a catch however, you must be a registered and paid member of both of these websites to reap the dividends. marketing done quickly, and as soon as possible.

Finally, another few tips that I have for users who are interested in learning more about Penny Auction services, or want to know about how to make it easier to win, these are the tips I have for you. Firstly, I think that you make sure that a site is reputable. It has SSL security when you attempt to make a purchase, and all of your questions are responded to immediately when you e-mail them. Next, the newer a site is, the less members there will be available on the site to bid and for this reason, you will be able to get a ton of products for very cheap, before everyone else finds out about the site.

Okay, so when you locate a site that is new and does not have many users, you are going to want to bid, and bid heavy on the items on the site. Make sure the site is Paypal verified, Verisign verified and has SSL on the purchase page. Once you go through that checklist, check which high price items you should be able to win, use the techniques we discussed in earlier articles about bidding later on in an auction and then finally, when you know you want the auction, MAKE SURE YOU WIN THE AUCTION. There’s no way you’ll pay anywhere near retail if you follow this to the T.

Next, all that is left to do is set up your account over at ebay.com, or amazon.com and resell the items that you just won. Since most penny auction websites offer items that are brand new, this will give you the chance to sell brand new items on ebay or amazon, for a fraction of the price that you paid. If you follow this advice, to the T, and make sure to be a shark, not a minnow when bidding, you will be able to make a fast amount of money using both Penny Auctions and Traditional Auctions.

I myself was able to rake in about $10,000 extra profit this year alone doing this. That is all I have for you in this installment hopefully I have been helpful in allowing you to gain more knowledge about penny auctions and how to be successful in winning auctions to get items you want, for 90+% off retail and then reselling them for a profit with ease! 

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