A bidding fee scheme, also known as pay per bid auction, is type of auction where participants pay a fee for every bid that they place on a timed auction. Each bid raises the price of the auction by a fixed amount and extends the time of the auction. When the time runs out on the auction, the last person to have placed a paid bid is the winner and gets to purchase the item at the auction ending price.

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  • A bidding fee scheme, also known as pay per bid auction, is type of auction where participants pay a fee for every bid that they place on a timed auction. Each bid raises the price of the auction by a fixed amount and extends the time of the auction. When the time runs out on the auction, the last person to have placed a paid bid is the winner and gets to purchase the item at the auction ending price. Since this type of auction model is quite new and blurs many lines of business, some consider them to be a grey area business model. Pay per bid auction sites seem like a very lucrative business. The companies running the auction receives income both in the form of the fees collected for each bid, and in the form of payment for the winning bid. When looking at certain items, it may seem that these auctions are making large profits. However, such sites also consistently lose money on some auctions. New pay per bid auctions keep opening all the time, but most of them close shortly. Users are more likely to get good deals on newly opened sites, as there is not too much competition from other bidders and auctions tend not to last as long as on mature sites. If a pay per bid auction sites does not attract enough bidders, it sells many items at a loss.
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  • February 2009
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  • February 2009
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  • February 2009
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  • A bidding fee scheme, also known as pay per bid auction, is type of auction where participants pay a fee for every bid that they place on a timed auction. Each bid raises the price of the auction by a fixed amount and extends the time of the auction. When the time runs out on the auction, the last person to have placed a paid bid is the winner and gets to purchase the item at the auction ending price.
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  • Bidding fee scheme
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