You would think the differences between a Penny Auction and eBay would be minimal, giving the fact they are both bidding sites, and deal with many of the same items. However, there are very many differences between both of these websites, and in some aspects, the Penny Auction site looks to be a far more opportunistic way of bidding. Let’s learn why.

When it comes down to the bare-bones of bidding, the cost one would have to pay in order to bid plays a big factor in deciding if it’s worth it or not. When you bid in a Penny Auction, each bid requires you spend money. With eBay, there is no cost to place a bid. With that, eBay leads 1-0.

Next up is the items for sale on these two auction sites. When participating on Penny Auctions, you are bidding on brand new items that include the original manufacturer’s warranty. With eBay, most items you bid on are used and have no warranty whatsoever. The bidding game is tied here, 1-1.

The starting price for an item on Penny Auctions usually starts at zero dollars with absolutely no reserve. On eBay, the amount can start very high and normally involve reserve prices. The Penny Auction takes the lead, 2-1.

Because you are bidding on brand new items at discounts up to 99% on the Penny Auction site, you will have bidders from all over trying to get that deal, thus increasing competition two-fold. On the eBay site, you are usually bidding on used items with a discount that is equal to similar used items in that genre. There are usually more of these items to bid on at eBay, making bidding less competitive; however, they are used, not new. The Penny Auction is looking very good now, 3-1.

If you’re worried about sniping (a term given when a person bids on an item at the last second, winning an item you thought you won), the Penny Auction has the answer for that. When you place a bid, the time will extend, usually around 15 seconds. This keeps someone from sneaking in at the last second and snatching your item. On eBay, the time is not extended with every bid, and it is very common for an item to get bid on the last second causing you to lose out on it after hours of bidding. Penny Auction 4-1.

Of course this isn’t a true game of who is better, but hopefully this article has given you the differences between the two, so that you can judge for yourself. Both have their positives and negatives, and both allow you to get great items at great deals.

Bidding online is a fun, yet very addictive means of entertainment. You are actually spending money on something you may not win, but the thrill of winning that item at a much lower price than retail is enough to keep you in your chair for hours.

It could be that need an extra blender for the kitchen, or a new flat-screen television may just be what your living room is missing. Bidding on Penny Auction sites are almost a sure-fire way of getting what you want, without actually spending too much on it. Of course, you are bidding against people who want the same items, and that is where bidding becomes a challenge –turned habit.

To avoid getting caught up in the mishaps of bidding woes and failures, one of our Featured Penny Auction sites, GoBid, has some tips for you when you are sitting down to place that very important bid.

Set Limits

Before entering the auction, you should set a limit on how much you’re willing to spend on a particular item. This amount should include the final amount and any shipping costs as well. Even an online auction has to be approached with a solid plan ahead of time so you don’t spend more than you expected. In some cases, you might continue to bid on an item before you actually realize that you’ve won it and are spending more money than its retail cost.

Check the Item

Continue to check the item, and make sure you keep track of how many times you’ve actually bid on it. There is normally an Auction Price calculator you can use to tally up the total cost of bids plus the auction price. This will help you compare it to the retail price and keep you from going over.

Walk Away

If all else fails, just walk away. Don’t let ‘auction fever’ get the best of you. If you start to go over your limited budget, or you become too competitive with another bidder, it’s never a bad idea to just leave the bid all together. Most items will be offered again, so just keep that in mind. Never worry about losing an auction. It’s not like a game and people are keeping score of your wins and losses. If you do happen to lose, just try to improve your strategy for the next time around.