How To Launch A Successful Penny Auction Website

In 2008, the legalities of the penny auction industry were discussed. The conclusion was that if an auction is fair, then it is not deemed as gambling and no gambling license is required to operate or launch a penny auction website. Earlier in 2012, Penny Auction Watch published an article on responsible development and guidelines for making a penny auction website successful. Although the topic of distrust and scams do appear on the web, Softmedia, the world's leading provider in penny auction software is at the forefront in the fight to support honest business practice within the penny auction community. Therefore, we have created 10 tips to make sure your site remains trustworthy and successful: 1. Be preparedrnThe general misconception is that penny auctions are an automatic money-making machine. Unfortunately, this is not the truth and is just like any other B2C business. Make sure you read up on the industry, general rules and having good business principles will help. 2. Penny auction softwarernBefore launching your penny auction website, you need to have powerful software in place to handle simultaneous bidders. There have been many stories online regarding penny auction sites crashing or being slow, so make sure you have a fast loading website able to handle high volume traffic. Choose a trusted provider, one that has several years of experience. 3. Shipping prizesrnOnce an auction has ended and a winner has been declared, your responsibility should be the ship the item as quickly as possible to the winning bidder. Once the item has been shipped, inform the winning bidder and include an estimated delivery date. Make sure your keep your winners informed throughout the entire process. 4. Languages & currencyrn60% of the Internet users are non-native English speakers. At a $1 per bid, being able to target bidders outside of the English speaking markets is a competitive advantage. When purchasing your penny auction software, make sure you include the option to offer multiple languages or currencies on your site to reach a wider audience. 5. Auction rulesrnWhen launching a penny auction website, the goal should be to offer fair competition. As penny auction website customers visit multiple sites in search of a better set of prizes, you want to make sure that new bidders have just as much chance of winning auctions than experienced bidders. By implementing limitations on number of wins per month or launching beginner auctions (also known as virgin auctions) you then level the playing field for new and experienced bidders. 6. Terms & conditionsrnYou should make your terms and conditions clearly visible on your website and in a size and font that is clearly readable. Most websites list the terms and conditions within the footer of the website (at the bottom) but for added trust, include it within the sign up process when asking for name and email address. 7. DishonestyrnKeep your auctions fair. Do not implement automatic bidding software that will make bids in the closing seconds. By doing so, you are sacrificing a small increase in price with what could potentially be a loyal customer following. Providing your auction is software free, no complaints will be made online. 8. Market your websiternToday’s marketing is no longer about direct mail and catalogs. With a plethora of online marketing channels to choose from, you can now market your site for a low cost providing you invest in the time. Online marketing can include SEO, social media, blogging and affiliate marketing. Promote your brand and increase word of mouth exposure. 9. Personal informationrnCustomer information is private to the customer. When a customer signs up to your website, clearly highlight that you do not disclose your information to third party websites and the information provided will remain secure. If you do disclose information to third party websites, it must be clearly stated and not hidden on your website. 10. CommunicationrnWhat of the easiest ways to ensure trust to communicate with customers. If a customer asks a question, you should make sure it is answered within 24 hours. Most penny auction sites offer live chat but if you can provide further support via phone or email and are able to answer customer service inquiries, your customers will feel more comfortable buying bid packages on your website. A notable addition would be to include the site owners details, including office address. The penny auction industry is competitive, yet the leading brands such as Quibids and Beezid have been successful because they treat their customers well and honor there site promises. This is not unique to penny auctions; most businesses are successful because they treat their customers in the right way, and by doing so create a loyal following. Follow the ten steps above and you will be on your way to having a successful penny auction website.