Penny auction websites have thousands of items for sale far below market value. From clothes to electronics, penny auctioneers earn millions of dollars as consumers hunt for bargains. Now is the time for entrepreneurs to invest in the development of a penny auction website. Penny auctions have been under scrutiny by consumer advocate groups and government agencies to ensure fair practices that don’t constitute gambling. Want to ensure that your penny auction website is honest and consumer friendly? Here some top tips from the experts to keep your website above the fray.
1. Be Ready for the Long Haul
Some entrepreneurs think penny auctions will generate a quick payday. But like most investments, it may take some time to generate a significant profit. Studying the industry and regulations will make you more popular, and establish credibility with your customers faster.
2. Beef Up Software
Make sure you have the most powerful software available. The last thing you want is to have your website crash because of traffic. Remember high volume traffic is good, a weak infrastructure is bad. Once your website crashes, it may be difficult to get those customers back.
3. Fair Play
Instituting rules geared toward fair competition will attract new participants to your penny auction website. One of the number one complaints of new bidders is that they never win because of more experienced bidders. Put limitations on how much bidders can win on a monthly basis. If everyone feels like they have a shot, so will your penny auction website.
4. Visible Terms & conditions
Most places put terms and conditions at the bottom of their website. Place your terms and conditions in several areas, including the sign up page for added trust and lessened liability.
5. Ship Quick
In today’s age of two day shipping, ensure that you have a fast and efficient shipping process in place. Once a winner has been declared, ship the item as quick as possible and inform the winner. Include estimated time of delivery and keep them up to date by instituting a tracking program.
The penny auction industry is extremely competitive. But leading brands like Quibids and Beezid have been successful by maintaining these key components. Follow these five simple steps and you will be on your way to a successful penny auction website. If you are interested in making major profits with your penny auction website contact eMerchantBroker.com. Our veteran agents will open your penny auction merchant account today with no penalties and no hassle.