January 27th 2012 -
Penny bids are a new form of auction site found online. Unlike websites like Ebay, penny bid websites require you to purchase a lot of bids ahead of time. This is in contrast to Ebay, where you can bid with virtual funds and be expected to pay later. Another difference between Ebay and penny bid sites is that with Ebay, you do not pay anything unless you win the bid. With penny sites, every bid you make comes out of your lot of bids. This means that every bid has a permanent cost associated with it. This cost is somewhat disguised by the fact that the value for each bid is relatively small. A bid may cost a single penny, hence the name penny bids. The penny bidding process is a bit like a raffle mixed with a traditional auction. Unlike a raffle, the winner is the person who placed the most bids.
Tags: penny bids