A bidding fee auction or a penny auction as it is more popularly known, is a different kind of auction site where the winner can end up purchasing high quality goods for a fraction of their normal retail price. For instance, an Apple iPod Touch with a retail price of 150GBP could be snapped up for as little as £20! For the bidder, the chance to win a range of goods at up to 90% cheaper than in the shops is an incredible opportunity!
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Getting Started With Penny Auctions

So how does it all work? Well basically a penny auction site will have a number of items on offer and a time when the bidding ends, say 15 minutes. As the bidder you will put on a starting bid of a penny. Each bid can only be raised by one penny at a time and for every bid placed, a few seconds will be added onto the timer. Once the countdown ends, the final person to bid wins that item for a heavily discounted price. The result is usually an exciting race to be the last person to bid before the timer reaches zero!
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In order to get started with penny auctions you'll need to register. Most sites offer free registration but you will need to purchase bid packs to participate. So if you buy 100 bids for example, that may give you 100 chances to win the auction you've got your eye on.

Some sites also offer a 'Buy It Now' option, so if you don't win an auction you can simply purchase the item at the retail price minus the cost of all or some of the bids that you placed, depending on that particular penny auction sites rules. This means that you can often bid against your competitors with little or no risk while trying to grab a bargain.

Penny Auction Items

A wide range of items are offered up on penny auction sites and most are extremely high value items such as iPads, Apple iPods, laptops, cameras, consoles and designer goods. You can also bid on high street gift vouchers and in some cases, cash amounts.

Tips and Strategies for Penny Auctions

Some might say that it's down to pure luck but there are a few tips that could increase your chances for winning a penny auction:

1. Save up any free bids you get and use them to place on bid packages.
2. Set yourself a limit and don't be tempted to go over that.
3. Don't set early bids, if you have the nerve then it's best to leave your bid as late as possible - the last few seconds are usually the best.
4. Stick with low cost items at first as there will be less competition and it's the best way to get started.
5. Peak bidding times are usually in the evening and at weekends, whereas early mornings are quieter so you may have less competition around that time.
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Remember that bidding on penny auction sites does not guarantee that you'll end up a winner, so it's often best to see it as more of a game that can be enjoyed but a bonus if you win. For most bidders it's thrilling and exciting so make sure you don't get carried away and risk more than you would like to.

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