Sunday, April 13, 2014

Q and A on Penny Auction Software no. 53

Q. I require the software for auctions.

A. We offer several auction system models from the functional point of view, and the most popular ones are the following:

1) Classic auction model (mostly used for selling/distributing goods):
  • bidding is usually free;
  • the price increment after each bid is relatively high;
  • in some cases the price increment is the value defined by the auctioneer; in other cases the bidder can give his or her own auction price;
  • every bid may extend the auction time for some period;
  • the auction ends when its time is over and there are no more bids; the last bidder has an obligation to pay the final price and the delivery/processing fee.

2) Penny auction model (mostly used for entertainment auctions):
  • bidding is usually not for free (Pay-Per-Bid model);
  • the price increment is usually 1 cent (1 penny);
  • every bid extends the auction time for a short period (restarts timer);
  • the auction ends when its time is over and there are no more bidders; the last bidder has an obligation to pay the final price (relatively low) and the delivery/processing fee, but auctioneer revenue also includes bids purchased and spent by all bidders.

Saturday, March 22, 2014

Q and A on Penny Auction Software no. 52

Q. We want to add a new payment processing gateway to our penny auction software. Could you install any?

A. We can install any payment gateway which is suitable for penny auction. It means, that the gateway should give answer immediately - was the transaction successful, or not. Not after 8 or 24 hours.

We recommend you send the email below to the payment processing provider prior to ordering setup from us:


Our website is a so-called penny auction website, or in other words a pay-per-bid online auction website.
We have 5 questions for you:

  1. Do you allow websites of this nature to use your payment gateway? 
  2. Is your payment processing instant? In other words, how fast will the website get a response regarding whether the credit card payment/transaction was successful or not? 
  3. Is it possible to get test credit card data from you to test the installation? 
  4. Is it possible to get technical documentation for developers in English? 
  5. Do you have any acceptance processes after the gateway is installed on the website? If so, what do they include – technical approval only or also approval of the business model in whole? 

Sunday, March 9, 2014

Q and A on Penny Auction Software no. 51

Q. Hello,

We are developing an idea to give a return to the system of sales through penny auctions.

It would be possible to create a marketplace, with two modes of sale, bid a penny and direct sale. Credits should be free and only will pay the last bidder, those who do not earn do not pay (being free only the winner should pay the final price).

It would have to differentiate from penny auctions auctions, in some auctions would raise penny to penny, in others of 0.10€ to 0.10€, in others of 0.50€ to 0.50€ or 1€ to 1, for example.

We believe that it is possible to develop this idea with the current our penny auction software. Do you see it feasible?

A. Hello,

Your idea seems like classic, traditional auction.

You can have such auction with our additional module #101 "Classic auction". Please see how it works at our demo:

Regarding synergy with Bidyear.
We doubt in this because these types of auction have totally different purpose:
Penny auction is online entertainment.
Classic auction is for selling goods.

If you want to add something to Bidyear, try to add entertainment:
casino games;
unique lowest bid auction;
reverse x-price auction.

Sunday, February 9, 2014

Q and A on Penny Auction Software no. 50

Q. Until today I was sure of choosing your page but, I received other proposals with all functions I wanted and SEO included. I am going to compare and see because I am not sure now.

A. We have heard, that some of our competitors offer the following:
  • Advertising and marketing, independently of the country of business,; 
  • Free hosting; 
  • 10,000 visitors for free; 
  • Free support and maintenance; 
  • Free website texts, including legal texts;
  • Free translation;
  • Bulk upload of the products to the website;
  • Cheaper price;
  • Etc. 
When you buy the software for the business, what is based on that software, you need reliable and proven software, not promises. Check the software and how it works at real penny auction websites, instead of listen offers, what are made for being nice for you. Do not forget, that some of providers could be fully fake, crooks.

Friday, January 31, 2014

Q and A on Penny Auction Software no. 49

Q. I want to start a penny auction website. Is it better to start locally or internationally?

A. Everything depends on your budget.

Take in consideration that in case of operating your website in different countries you need:

  • The software that handles not only different countries and languages, but also currencies, time zones, etc. 
  • Local customer service staff, speaking target languages.
  • To allocate several times more money for the advertising, as it should reach different markets.

If you are planning to start on a grand scale – then you may start internationally. In case of fixed and conservative budget it is better to start step by step and to expand your business when you are the leader on your local market.

Sunday, January 26, 2014

Q and A on Penny Auction Software no. 48

Q. I have an online clothing store and I would like to launch a penny auction website for auctioning our products.

A. It is always nice to start an auction website already having some traffic, so if you are an e-shop owner, penny auction can be a nice solution to expand your business and to monetize your existing customer database.

But auctioning your specific products can be not the best idea, and let me explain you why:
Specific products and services are attractive only for certain audience. For example, clothes fascinate mostly women, so you may unconsciously limit your website for male customers. Of course guys also buy clothes, but usually it happens without a fuss. It is hard to imagine two guys, competing for a t-shirt, what cannot be said about an iPad, for instance.

Here are some tips how to choose products for a successful penny auction website:

1. Don’t narrow your target audience – it is better to offer popular items, desired by everyone. They should be new, universal and preferably luxurious.

2. Better to offer several cheap items, than one expensive. Keep in mind that people love the feeling of being the winner. Try to have as many live auctions as possible, so you have more winners. They will be your most faithful customers.

3. Remember, that the idea is not to sell the products. Your goal is to sell bid packages. If you have a stock of 1000 items of some product and you want to get rid of it, it is better to arrange a sale.

4. The easiest way to find out what do your customers like – to ask them. Organize a poll and give all participants some free bids for their answers.

Monday, January 20, 2014

Q and A on Penny Auction Software no. 47

Q. We would like to customize your penny auction software? We need to have an auction for special group of users.

A. Any owner of a penny auction wants to be different. You can use the original design, as well as a lot of additional options. However, we are not sure that funсtional customization is the way to success.

Look at e-shops. E-shop is usually composed of the product catalog, shopping cart and payment gateway. High-end stores, such as e.g. Amazon, have the function of recommendations based on the behavior of other buyers. In general, that's all.

What is the reason that e-shops have, in general, the same set of functions?
The reason is simple: the task of e-shop is selling. The buyer, who came to the site, should understand what he has to do and not to wrestle with the question - how to buy needed product.

Therefore we do not recommend to get involved much in the programming of new features. Especially those that provide additional restrictions to your customers.

Sunday, January 12, 2014

Q and A on Penny Auction Software no. 46

Q. I want to start an entertaining online auction. Which auction type do you recommend?

A. The idea of auction is known for a long time: participants offer their cost for the product and the highest bidder gets it. Having moved to online medium, modified forms of auctions appeared. Online auctions with elements of entertainment are relatively new type of e-commerce and become more and more popular. This industry is tremendously developing, offering new forms every day.

Softmedia.biz offers the following auction types:

  • Penny auction;
  • Unique lowest (highest) bid auction;
  • Reveal the price auction (also known as “scratch” and “reverse x-price” auction);
  • "The Price is Right" auction;
  • Classic (traditional) auction.

Even if you are familiar with different auction types, it may be hard to choose what to start with.

The most popular and effective model of entertainment auction is Penny auction. Thanks to its dynamism, Penny auction can gather big audience and hold it. Such auctions end relatively fast and attract participants with low final prices. Combining fun with shopping, penny auctions offer excellent opportunity both to spend free time and to get useful items for incredible prices.

Unique lowest bid”, “Reveal the Price” and "The Price is Right" auctions are fun, but better to offer them as an addition to penny auction. They last for a long time and their approach is more passive, so it is hard to hold the interest of the audience. That’s why it is hard to name any big website, which is based solely on one of these models.

Classic auction is not considered to be entertaining model, it has different purpose. If your goal is to distribute goods and services, then you probably should think about classic auction.

The conclusion is the following: penny auction is the most effective entertainment auction type for starting a new online auction business. Other auctions can be added later in order to diversify and enrich the functionality of your website.

If you are interested to start your penny auction business, feel free to fill in the inquiry form at www.softmedia.biz/inquiry and ask the details.

Sunday, December 15, 2013

Q and A on Penny Auction Software no. 45

Q. Is penny auction business profitable?
Is Softmedia the best PA penny auction software provider?

A. From our experience with many penny auction projects we can say that PA business is one of the most effectives among other online businesses. This is a model with fast return of investments (ROI) and low competition in comparison with similar types of e-commerce (e-shops, daily deal websites, etc.)

Softmedia offers high-end software with an advanced Content Management System (CMS). Our penny auction software is:

  • Trusted by many users – we offer it since 2008;
  • Reliable – you will have no crashes, no hassle, you can focus on your core business;
  • Easily scalable in case of business growth – we offer several editions according to your marketing plan;
  • Every website is unique – the software is easily customizable with more than 70 options;
  • Highly productive – made by software engineers, not just web-designers.

Do not hesitate to request a Functional Specification of our software or presentation about the company.

Sunday, December 1, 2013

Q and A on Penny Auction Software no. 44

Q.  Are there bots or automations to make the auction go up ( I mean, specially at the start, there wont be much customers, so we may have to use bots to make it move “lively”, maybe?)

A.  We fully understand your concern, but we do not provide anything for creating “bot bidders”, because it is illegal.
We strongly do not recommend to use them, because when your customers realize they are not really able to win, you may lose them. For attracting first customers to your website, you should plan a good advertising campaign, think about marketing tools and let some people win items on your website and they will definitely tell others.
To be legal, you should use only these features, what your customers also may use.