This is a quick way for users to understand some of the lingo when participating in an auction site. Instead of fumbling through the FAQ on the website, this is setup to guide you through some of the common terminology, and help you better understand the website and its offerings.

Below, you will find many terms associated with a Penny Auction website, and detailed information about that topic. Each feature and term is alphabetized for your convenience.

Auto Bidder – This is a commonly found feature on various Penny Auction websites that allow automatic bidding. It is setup for you to enter your total budget, and in what increments you plan on bidding. The main reason for this feature is to keep you in the auction even if you are unable to actively participate in it yourself. Something always comes up, so if you need to leave for a while, you can be sure the Auto Bidder will continue your bid. It can also spend your money quickly, so it’s best to read how to set it up properly.

Beginner Auctions – Because most people have been bidding long before you, this feature is handy for those wanting to learn the system without the risk of being shamed by a seasoned veteran. Overly aggressive bidders can ruin a good auction experience for someone new, and in a beginner auction, it allows you to learn the system and how to bid properly before going against the bigger crowd.

Buy It Now – With some Penny Auction sites, you are given the option to purchase an item before the actual auction expiration. It may appeal to you, but it is usually offered at retail price, so you won’t necessarily be walking away with a deal. Sometimes, you are allowed to use your lost bids in order to reduce the overall price.

Charity – If you want to give to a charity through your active bidding, some auction sites will provide that option. Reading through the site’s terms and conditions will give you all the relevant information, from what charities are offered, and how much of a percentage you are able to donate.

Free Bids – Free bids are an easy way for the website to attract new visitors. When participating in a free bid, you don’t have to purchase any bids, but in most cases you have to use those free bids within a certain time period. Free bids are also a nice way to go ahead and jump in and try to win an item, without the risk of losing more money you would with other bids.

Free Shipping – When it comes to shipping costs, most sites will charge them. However, a few sites will offer free shipping, which comes in handy if you win larger, more expensive items. Not only will you be paying the final cost, including the bids you used in the auction, but you will also be paying for shipping and handling. It will be a good idea to read through the terms and conditions for more information on the given auction site of your choosing.

Trade Items For Bids – An interesting feature some auction sites give is the ability to trade in an item you won for bids. If you win a 200 dollar item and decide you don’t want it, you can trade the item in for retail price, and receive 200 dollars in bids to use towards your next auction. This is a great feature, and should be looked at closely while reading the terms and conditions on the website.

Use Lost Bids – Because this feature varies from site to site, it is best to read over the terms and conditions to better understand what it entails. In most cases, the Use Lost Bids feature allows the user to use bids in a losing auction towards the retail price of an item he/she wishes to purchase. Sometimes, you will be allowed to use the lost bids toward the price of the next auction item.

Win Limit – To keep the auctions fair, some sites incorporate a win limit feature that keeps some overly aggressive bidders from winning more items than others. It can be a certain amount of wins per a number of days. This keeps the auctions steady, and ensures people who rarely win have a fair opportunity to win an item as well. Some aggressive and experienced participants can ruin an auction for some people, thus the website loses more participants than it gains. This win limit helps keep the balance.

*Below, you will find details about specific types of auctions and what they entail. Each auction is alphabetized for your convenience.

Lowest Unique Bid Auction – This type of auction allows the user with the lowest unique bid to win. An example of this would be:
2 users bid – 5 cents
1 user bids – 7 cents
4 users bid – 3 cents
The user with lowest unique bid wins the auction. Because there is only one user who bid 7 cents, they win the auction because it was the lowest unique bid available.

Penny Auction – This is the typical auction people participate in. The bid usually starts at zero dollars, and from there, increases incrementally by a penny or more. Each new bid increases the time allotted, giving more people a chance to bid in the last seconds. This also allows the auctioneer the chance to make more profit in the end.

Reverse Auction – This auction starts an item off at retail price, and each bid reduces the overall cost. However, if you wish, you can purchase the item at the current price if you find that it is a good deal.

Seat Auction – The only way you can participate in a Seat Auction is if you purchase a seat first. These auctions usually offer bigger prizes, such as cars, real estate and more.

View Price Auction – With this auction, the current price is hidden from view. In order to see the price, you must pay a fee. Each time you wish to view the price, a new fee will have to be paid.

*Below, you will find topics of common interest including costs, payments and shipping. Each topic is alphabetized for your convenience.

Cost Per Bid – In order to bid in a Penny Auction, you first must buy bids. Each auction you wish to bid in costs money. There are many sites that offer discounts if you purchase a higher cost bid pack, which may significantly lower your cost per bid. If you check with the site’s terms and conditions, you will understand how that site works with bid costs.

Free Bids at Join – This is a common method for Penny Auction sites to attract new visitors. Free bids are exactly that, free, and cost no money in order to begin bidding. The free bids usually expire after a given amount of days, so you will have to use them soon.

Monthly Visitors – This is the number of members or visitors a Penny Auction site has currently. This helps keep you aware of the amount of people you may be bidding against, which drastically reduces your chances of winning a particular item. The less attractive an item is, the better your chances are of winning; however, most people bid on items of great importance, thus knowing the amount of people bidding is crucial to a good auction.

Payment Method – Because Penny Auction sites are about making money, they usually accept most major credit cards, even PayPal. The best way to find out if the site accepts your payment method is to check with the terms and conditions of the website.

Ship To Country – The most important thing you can possibly do before bidding on an item is to check whether or not the site can deliver to your country. Before spending money on an item you will never receive, check if your country is on the list. If not, it would be wise to find another auction site.

Site Name – If you are ten pages within the auction site and quickly want to return to the home page, clicking on the site name at the top will do so.

Site URL – By clicking the URL link, you will be automatically sent to the website’s address.

The terms and conditions of the website is an important section to read through, and you should do so thoroughly. It will answer any questions you may have, and keep you from getting headaches later if a circumstance should arise.

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