What are penny auctions? Let’s begin with traditional auctions in exclusive Auction Houses, where elegantly clad ladies and gentlemen competed for valuable items. With the development of civilization and the advent of the Internet era, auctions began to move into the virtual world. With time, a special form of online shopping—penny auctions—was created. Let’s take a look at their history!
This is no secret—traditional auctions were not available to the average person. Only the members of social elites, with appropriately fat accounts, could afford to participate. The starting prices of the auctioned goods were beyond the reach of the common man. A characteristic feature of traditional auctions was the strike of a gavel, announcing the end of bidding. There was only one winner—one highest bidder. All others had to concede defeat.
Excitement associated with traditional auctions was not only experienced by bidders, but also observers of a rivalry. Thus was born the idea to enable less affluent people to take part in the race for the win. The implementation of this plan has enabled the Internet. Auctions become available to everyone, not only for millionaires. From then on anyone could bid and enjoy the victory. At present there is no one who has never had an access to the Internet who wouldn’t know about online auctions. The appearance of this type of services has increased the interest in virtual shopping. However, from the very beginning they started to move away from the classical model of the auction.
The thrill of competition frequently is often killed by the option „Buy Now”. The result? Online auctions are boring these services are mainly visited by people who want to buy cheap. Items can be both new and used, as the most important fact is the low price. Online auctions are also used to exchange goods between users. A passionate hobbyists search for gadgets they can develop their passions. Online auctions have become a place frequently visited by bargain hunters. They search for the wanted product, click on the “Buy Now”, pay and wait for the delivery. Where’s the excitement and trill? Where’s the competition and the tension? Not a trace.
However, adventurous consumers with unsatisfied yearning found penny auctions. Their story is short – has less than 10 years. The roots of the all-pay auctions reaches the year of 1932. At that time the US bank has put up for an auction the property of a bankrupt farmer. Goods were eventually sold for a pittance. This happened due to other impoverished farmers, who in solidarity effectively made it impossible to to place higher bids. Hence the origin of the name ” penny auctions “.
Why penny auctions are becoming more popular? The success of this idea is based on a combination of buying and fun. Let’s go back to the idea of a traditional auction in the Auction Houses, but the idea is revised. First of all – the rich and the poor – can take part in the race for the win. Not the size of the wallet but tactics count. We don’t see other bidders anymore, as the Internet gives us anonymity which boosts our confidence and gives the opportunity to develop strategy. Secondly, there is no way to resist the reserve price because it is always £0. Equally attractive is the final price – always lower than the retail price.
Penny auctions have significant advantages over conventional auction services. Their main advantage over other auction services is the fact that you will never be bored when buying. At penny auctions to get the product you want to have to make an effort while bidding. Each subsequent bid of the rival increases the price. The higher price, the more thrill. This isn’t an ordinary trade (cash for an item) – this is a recipe for fun. You bid, then wait for the reaction of your opponents, in suspense you count the seconds on the auction clock, again you place a bid… the excitement never ends. The rest of the services, instead of placing a bid you choose the “Buy Now ” option. A few clicks and it’s over. In this case, you can forget about the fighting spirit and entertainment. You choose the same buttons and you give up to monotony.
Penny auctions have bridged the gap in the online shopping market. Those auctions offer not only the real life auctions in the virtual world and at the same time provide the entertainment.