Understanding how penny auctions work is pretty simple.
Penny auctions are an online auction format where users have to pay to participate in auctions. This typically means that penny auction participants need to purchase ‘bid packages’, each of which contains several bids which can be placed on auctions. In general, these are non-refundable, although there are exceptions.
In penny auctions, a timer counts down and the auction ends when it gets to 0:00. The catch is that as the auction nears the end, each bid placed adds a small amount of time to the auction timer. This gives other penny auction bidders the chance to also bid on the auction.
The winner of a penny auction is typically the last bidder. This is the short verion but you can learn more about 1-cent auctions and how they how in our penny auction blog.
Posted in: Penny Auctions