beezid.com - The penny auction is a relatively new development in the online marketplace. Essentially a penny auction site relies upon a system of bidding that allows the customer to typically pick up high value items for a low spend. In the past there were many critics of the penny auction system; early pioneers were accused of putting profits ahead of customers, simply making promises that could not be kept.
Today however there is a new school of penny auction sites entering the marketplace. Perhaps a response to early criticisms of the system, these new sites have developed a host of different mechanisms to make penny auctions simpler and a better deal for the bidders.
One of the major ways in which these newcomers are doing this is by limiting the total number of available bids in an auction. Older sites allowed unlimited bidding, which sometimes led to the auction getting out of hand, with the sum spent on bids by the users becoming excessive compared to the value of the item up for offer. By limiting the number of available bids, the balance between the customers’ bid-spend and the value of the item up for offer is being kept in check.
beezid.com - Another way of achieving a fair process for customers is to have all available bids visible from the off. This is highly effective as it allows bidders to not only see how many bids are left, but also shows what other bidders are doing, subsequently giving them the opportunity to judge the auction better. This greater transparency was seen as a must for the industry in order to undo some of the mistrust regarding penny auction websites.
The final way in which the new school of auction sites are attempting to restore confidence and attract those with misgivings is to give any auctions a clear and definite end time. In the past too many companies were guilty of allowing auctions to go on too long, each minute steadily eating into the savings for the successful bidder. By combining a limited number of available bids, making this visible to each bidder and having a reasonable time limit, the auction has a better chance of achieving a low price for the eventual winner and reducing the bid spend of all participants.
beezid.com - Essentially penny auction websites offer customers the chance to make huge discounts on a massive range of different products. The new systems that are becoming prevalent are clearly a step forward for the industry, helping to restore the confidence of existing customers whilst attracting new bidders to the format.