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The following article was published in our article directory on January 23, 2012.
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How Do You Avoid Penny Auction Scams?

Article Category: Shopping

Author Name: Anthony

Penny auction sites have gotten a bad reputation recently for being scams. In fact, the Better Business Bureau actually listed bidding fee auction sites as being among the top 10 scams of the year, although it admitted that not all of these sites are fakes. One of the reasons that these sites are considered scams is that many people cannot understand how they can make money when a $200 iPad is sold at auction for $50. Basically, reputable bidding fee auction sites earn their profits from the sale of bids and from certain special auctions to which they charge entry fees. However, there are penny auction sites that do cheat their users by using deceitful methods to jack up the auction price, such as shills (fake bidders) or bots (automated bidders). Here are some tips on how you can avoid scams on bidding fee auction sites.

Avoid sites with auctions that seem to be won by the same usernames. If you see the same names over and over again, then the site owner may be using shills to win expensive items so that legitimate bidders can t win them. Another warning sign are bidders who seem to use an extremely high amount of bids in order to win an auction. Remember, even power bidders will not spend $1,000 worth of bids to win something worth $200.

Look at the amount of traffic that the penny auction site gets. A legitimate site will obviously draw a lot of traffic in the form of satisfied bidders looking for a bargain. Another way of determining if a site is legitimate is if it lists full contact information on its site, including an e-mail address, a street address and contact numbers such as landlines, cell phone numbers or fax numbers.

Check them out with the BBB. The Better Business Bureau maintains a page of searchable business reviews from which you can search revews on the site. Keep in mind that what you re looking for is not a site without a complaint, since even legitimate businesses will attract complaints; instead, you should determine if the grievance was resolved to the satisfaction of the customer ( closed complaints).

Avoid sites that seem to sell a lot of rare products. For example, if you see a bidding fee auction site that sells a lot of Apple iPad 2s, this should be a warning sign since these items are not that easy to acquire.

Beware of sites that have several auctions of big-ticket items finishing simultaneously. If you visit a site where six or more auctions for items such as HDTVs finish at around the same time, this should serve as a red flag that the site may be doing something suspicious.

Avoid sites that try to sell you a big amount of bids when you sign up. Legitimate sites will not force you to buy bid packs of $100 and up or make you enroll in an auto-subscription program where your credit card will be charged every month for a bid pack. You should also beware of penny auction sites that offer free bid packs as a welcome incentive but require big bid pack purchases before releasing the bonus.

Keywords: Penny Auction

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