When it comes to Penny Auctions, the question of their safety has been at the forefront of most conversations amongst internet users. Because they are relatively new to the online bidding community, you have to wonder if they are legal, or just another scammer trying to pocket your money and run with it. In the last few years, they have come and gone, (most of them being scamming and shill sites), and it leaves us wondering if any Penny Auction websites intend to sell you what you bid on. A few auction sites like RockyBirds, Bidrodeo and Zoozle that have continued to deliver honest bidding, helps us keep the faith when it comes to this type of online auctioning.

The real answer lies in the very fabric of what a Penny Auction truly is, and how it plans to profit as a business selling products well under suggested retail prices. It is this that raises the legitimacy of the auction. What a participant is actually doing is bidding a small amount for an opening bid. After that, the amount and time for the item increases slightly. So your next bid will end up being a little more than the opening bid for the item. Understand? So the auctioneer can actually profit from selling an item lower than normal because of the increases in bids overtime.

Bidrodeo, one of the longest running Penny Auction websites available, is known for dealing in honest and reliable auctions. However, this isn’t the case with some. Scamming sites have popped up around the clock, trying to trick participants out of their money. They will set up a website, get your bids, and once time expires, take your money and you will never receive the item you thought you were bidding on. The only thing you can do is email them, but you will never get a reply. The best thing to do if this happens, is alert people of the scamming site, and report it to the webhost.

Some scamming websites are known as ‘shill’ sites. These sites are trickier to spot, because the auctioneer actually takes an active role as a participant in their own auction. So as you casually bid on an item, the auctioneer comes in and bids on it as well, hoping to raise the price more. After all, higher price equals more profit for them. The best way to avoid from making the mistake of bidding against the owner is to check the bids often, and see how many times a certain individual is bidding.

While there are risks with everything you do online, there are a few Penny Auctions out there that are still in business. It is relatively new, having only been started in Europe in 2009. Once you know what to look for, and how to go about it, you will find yourself right at home in one of these addictive auction sites. Just remember, even if it is a legal penny auction site, there are still chances you will lose some of the bids. Nothing is guaranteed. Happy bidding!

Tagged with: • • • • • •

Filed under: Online Penny Auctions • Penny Auction Sites • Penny Auctions