Beginners Guide to Penny Auctions

There are a lot of different penny auction sites out there like www.bidonx.com, www.swoopo.com, www.beezid.com and www.bidrodeo.com and each and every one of them is at least slightly different from the next but they all have a few basic ideas in common. If you have started looking at penny auctions as being an option for you this is a great place to learn the behind the scene basics so you can walk into any auction site and know exactly what to do..



Registering



The first thing you will need to do is register at the penny auction website of your choice. To do this, you will need to select a username and provide your email address as well as any other information the company needs. You will also want to read the user agreement and policies of the auction site. As we have mentioned, each site varies in how they do things and it is critical that you understand what those differences are before you start bidding.



Buying a "Bid Package"



In most cases you will need to select your "bid package’ at some point in the registration process or shortly after. Buying bids gives you the ability to actually bid on the items. Bids are also the way the penny auction sites make their money. The cost of the bids will definitely vary from site to site. Some will even give you better deals for purchasing a bigger quantity. How many you want to buy is completely up to you. The prices of the bids is a very important factor when selecting a penny auction site to purchase products from. Prices are all over the map so shop around. For example, at www.quibids.com bids are $.60 each but at www.bidonx.com bids are only $.50. With all things being equal, try to purchase bid packages where you can get the most for your dollar. The lower the cost of the bids, the more money you will save.



Bidding



Bidding is where the auctions get fun and interesting. You will need to find a product that you really want and then stick with that item. Don’t bounce around from item to item - that is not a good strategy to take. It is also recommended that you start with a smaller item when you first start bidding. By doing this you can get your feet wet and gain the experience you need to go after the really great products later on.



Strategy



If you are new to the penny auction scene you may have not even thought about a bidding strategy yet but a good strategy is just as critical on a penny auction site as the bids you use to try to win the item. If you don’t have a strategy yet, do your homework. Find out some of the different strategies out there and then pick one to try. It may take a few auctions for you to really find the strategy for you but that’s okay.



Winning



Winning is the final and most fun part of the penny auction process. After all, that is why you are there in the first place right? Once you win the item each individual auction site will have their own system for verifying your address and getting the item delivered to you. Their timeframe for shipping may be slightly different as well. This information should have been laid out in the policy and procedures you read upon registering so if you have any questions that would be a good reference to start with.



What if you lose?



Unfortunately, losing is another part of the penny auction industry. In most cases, there can only be one winner. Losing is frustrating no matter how you look at it but some sites are really working hard to take the sting out of the losing process. For example, BidOnX.com is a new penny auction site that offers the items they have available in the auctions as a "buy it now" as well. But the really great thing is that they also give you credit for the bids you spent trying to win that item off the retail price. What does this mean in a nutshell? You can’t lose! You get the enjoyment of the bidding process and the chance to get it at a discounted price but if you don’t win it the auction you can purchase the item anyway AND get credit for the money you have already invested. Now that is a great deal!