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Pay per bid auctions have two main features in common with each other. As the name implies, participants pay a small fee for each bid that they place and this feature alone separates pay per bid auctions from more traditional online auctions such as eBay. The second common feature is that pay per bid auctions are designed to deliver very large discounts on brand new products to the winners, and they do this very well. It is not uncommon for winners of pay per bid auctions to win discounts as high as 90% OFF RRP. This high level of discount and the excitement of bidding, make pay per bid auctions an attractive form of auction. This article covers the pros and cons of the main types on offer to biddersPenny AuctionsPros:Penny auctions deliver a good level of excitementParticipants know within around 30 seconds whether a bid has been successfulCons:There is no definite end to the auction so they can go on for days (some have gone on for weeks)The collective number of bids placed by bidders can be disproportionate to the value of the product on offer resulting in a deal that is not good for biddersBid-Block AuctionsPros:Bid-Block auctions deliver an excellent...more
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