If you are looking for different ways that you can setup your auction website, then you might consider the option of using a penny auction software to manage the bidding that is occurring on the site. It is important for you to understand the differences between a regular auction website and a penny auction site, so that you can choose the best option for your needs.
What are Online Penny Auctions?
Consumers love the idea of a penny auction website, because it provides them with the opportunity to win a big ticket item for a lower price. With a traditional auction website, you bid on an item until the time runs out. The person who wins the bid will pay the full amount of their final bid.
In comparison, a penny auction website requires that you pay to bid. So, you will be spending money even if you don’t win the item. In some situations, it can turn out great because a person can get a specific item without spending much money out of their own pocket. But, it can be a drawback for the people who didn’t win, because they spent money for the opportunity and didn’t get anything in return. In fact, sometimes penny auctions are compared with a lottery system instead of a traditional auction.
Usually, the price of the items on a penny auction site will start at zero, and then they start to creep up as people place bids on the items. Each time a bid is placed it increases the price of the item by one penny, and it also adds a little bit of time to the countdown clock. The additional time is usually anywhere from 10 seconds to as long as 120 seconds. Once the countdown clock runs out of time, the final bidder is the person who gets the item. It is difficult to predict when the countdown clock will stop, because of the extra time that is added with each bid.
Setting Up Your Own Penny Auction Site.
There are many reasons why you might consider setting up your own auction site. This format can work great for fundraisers or school events, because everyone knows that the money that is spent on the bidding process will be going to a good cause.
If you setup your own site, the easiest process is to choose a software that is already designed, so that you can simply install the software on your site instead of having to hire someone to code the program for you. Once that software is installed, you can setup the specifications for your penny auction, and then start adding items that are up for auction.
Your individual specifications might include things such as a registration fee to participate in the bidding, the cost of each of the bids, or even bid packages. Typically, bid packages include a group of bids that can be used, and those bids might be priced at a lower cost-per-unit since they are being bought in bulk.
The advantage to setting up your own penny auction website is the fact that you can decide exactly how you want to structure your auctions. We have an easy-to-use penny auction software for you to install on your website, contact us today to learn more.