Buy It Now Feature
So ask any seasoned penny auction bidder what smarts the most and they’ll say, “Losing an auction”. You ask them what part and they’ll most likely tell you it’s that they lost 10, 100 or even 1000 bids on a single auction!
There is one way to mitigate the loss though: the Buy It Now Feature.
Most penny auction sites offer a Buy It Now Feature for people who have either bid on an auction or bid on an auction to a certain level. Here’s how it works. If you lose an auction that you’ve bid on and lose, then you can buy the item you’ve been bidding on at full retail value. Then, depending on the rules of that auction and Buy It Now Feature, you can be refunded some, or all, of your bids.
Pretty sweet right?
This makes a great deal of sense for people who are willing to buy an item at full price but want to take a shot at getting it for a discount on a penny auction site. Some sites even offer free shipping as part of the Buy It Now Feature.
There are two types of Buy It Now Features:
Number 1: Bid Value is Applied to the Final Auction Closing Price
In this case, the bidder can take the value of the bids that they lost and apply it to the final purchasing price of the item they were bidding on.
This formula is used to calculate how much you will owe:
Item cost =
So, if you placed 100 bids at 60 cents each on an auction item that was worth $100 the formula would be
Item cost = $100 – (100 x $0.60) = $40
Basically, you would end up paying $40 additional to buy the item.
The following penny auction sites offer this type of bidding experience:
Number 2: Bids Replenished After Purchase
In this situation, you pay full price for the item and the bids that you used on the auction are returned to your account.
So, if you placed 100 bids and lost them, then you would pay full price for the item and you would get 100 bids placed back into your account.
Easy to understand. Right?
The following sites offer this type of bidding:
Which Model Is the Best?
In our humble opinion the better deal is in Case #1 where you get to apply the cost of the bids to the actual cost of the retail item. If you get monetary value for the bids you lost, that seems to be a better deal than just getting those bids back. It’s a personal preference we suppose, but you can always choose to buy more bids later.
Again, if you’re prepared to pay full retail price anyway, using this feature is a great way to see if you can get the item for cheaper in the first place. Not a bad way to shop if you ask us.