Top 5 Keys to Success for Penny Auction Websites

Apr 24, 2015

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.

Let us help you get a penny auction merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat