A Penny Auction is a timed auction where people bid on items, and each time a new bid is given, more time is allotted to the auction. The winner is the bidder who places the final bid. The items are normally brand new, retail items and will often come with the manufacturer’s warranty. There is usually no reserve price when it comes to Penny Auctions.

In a standard Penny Auction, the price for an item begins at zero dollars, and will normally increase by a penny with each person bidding. This does not mean you can’t bid more per bid, because each bid will vary depending on the various penny auction sites out there. At one of our Featured Penny Auction websites, GoBid, each bid costs 95 cents, and will raise by one cent every bid thereafter.

In most auctions, the bidders are required to pay a non-refundable fee, and those bids can then be spent on the auction. With each bid, it lowers the value or the prize. The last bidder who places the bid will win the prize. Once the auction is through, the auctioneer will collect the final costs of the item, along with the money that was gathered by the selling bids.

There are several types of Penny Auctions, including the standard Penny Auction (written mostly about in this article), the View Price Auction (a fee must be paid in order to see the current price), The Reverse Auction (price starts close to retail value and decreases with each bid), the Lowest Unique Bid Auction (the person with the lowest unique bid wins), and the Seat Auction (one must purchase a seat in the auction before they can bid on the prize).

Because these auctions are a fun and addictive way to win prizes, some websites are purposely created to steal your money. These scam and shill websites are set in place to con people out of their money, either by purposely raising the price as you bid, or simply taking your money and never sending you the winning prize. While there are many good Penny Auctions websites available that are legit, you will have to be wary and mindful of the scammers that may still be out there.

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