There is a distinct line between a legitimate penny auction and a scam. The important thing to remember is that in penny auctions, you pay for bids that you use—even when you do not win the auction. This is how penny auction sites make money. There would be no point in running a site if they returned the losers’ money to them since there would be constant losses per item auctioned off. This is why you are able to buy expensive items for so cheap; even the people that lose out on the item are helping pay for it and more. So even though many of the deals you will find within penny auction sites look too good to be true, the truth is that the sites make a lot of money on most items because of the per bid fee.
So how do you know if you’ve been scammed? The biggest scam happens if you win an item and you don’t receive it after paying for it. There are ways to avoid this particular scam, however. Sites that don’t fulfill their promises often do not stick around for very long. If you stay with the reputable sites as listed on this site, you will be safe.
Penny auction scams can be perpetrated by unfair sites that utilize their own robots or employees to jack up the final price of the auctioned item. This causes the price to go up and it creates more bids which also means more profits for the site. This happens only rarely, however; again, if you stick to the reputable and top-ranked sites, you can avoid this type of scam.
The truth is, there are scams all over the internet, in every type of business. Penny auctions have their scammers just like all other products do. Here are a couple tips to help you avoid being scammed:
Don’t fall for hype. There are many sites out there that create advertisements stating that their site has the best deals, et cetera. No one site can claim they have the best deals since each auction is unique. If you stumble across an ad stating this, don’t follow the link to their site, simply stick to the sites that are honest with you.
Stay with high traffic sites. The sites that get a lot of customers are the best ones. Although winning might be tougher at these sites, having a tough win is better than having an easy one where your money is just lost. After all, penny auctions are supposed to be hard to win. This is half the fun of using them to save money.
You want to make sure that your money is getting the most for you. Just because you lose an auction does not automatically mean you’ve been scammed. Stick to the top ranked sites and you will be fine including Beezid and HappyBiDday. Also, look for Quibids reviews to help you determine if it is the right place for you. You have plenty of options. Good Luck.