How to Build a Penny Auction Website?
Penny auction is a type of auction in which a product or service is put up for auction at a minimum cost, bidders place bids with a fixed small increment and you have to pay for each bid. The participant who made the last bid is considered the winner. This article will show you how to create your own penny auction website and make money from it.
A digital camera Sony Alpha A7 III Body (without lens) was put up for sale at a starting price of $ 1, with a market value of $ 1.8-2.3 thousand. The bid step is fixed - 1 cent, the cost of one bid is $ 1. Let's say that players made 6,000 bids, thus raising the lot price to $ 61. Then the owner of the camera, if it is sold for $ 61, will receive $ 6061: (cost of the bid $ 1 * 6000 bids) + the selling price of the lot $ 61 = $ 6061.
As you can see, with such an auction mechanism, the owner of the lot can receive significantly more money from the sale, even if the product or service was sold at an incredibly low price. Buyers, in turn, can buy an expensive lot at a very low price (as in the example above, where a camera that costs about $ 2 thousand was sold for $ 61). The organizer of the penny auction (website) also wins, as it removes the commission from each transaction.
Penny Auction Bidding Rules. The general principles are no different from the rules on eBay or another similar auction site: a product or service is put up for auction by a supplier, players place bids, increasing the value of the lot, the winner is the participant who made the largest and / or last bid.
The second way means that at your auction, anyone can put up a lot for sale, as on Etsy and eBay. You can monetize such a site in the following ways:
These lots include all goods and services where buyers know their estimated cost or they can easily establish it. For example, Apple iPhone 11, the approximate cost of which is known to everyone, or Samsung refrigerators, the price of which can be found on a site like Amazon. If the market value of the lot is unknown or it cannot be quickly established, then such a lot will most likely not arouse interest among buyers, since they will not be able to see the possible savings.
The "uninteresting" lots include handicrafts and objects of art by little-known creators. In addition, relatively cheap goods, such as a regular pen or a medical mask, can also be attributed to "uninteresting" lots: why spend one dollar on a bid in an auction where the winning is a two-dollar pencil? Similar products on penny online auction sites need to be sold only in bulk so that the potential winnings are not $ 1, but $ 50.
The "interesting" goods for penny auctions can be:
You only need to pay attention to the following things:
In addition, other integrations will also be needed: