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Wednesday, August 6, 2014

Q and A on Penny Auction Software no. 57

Q. What type of media outlets are best to advertise to reach out to potential penny auction clients? Please list in order of best to least.

A. 
  1. Existing customers' database. Do not hesitate to try to co-operate with existing websites, for example daily deals' providers, or providers of e-mail databases/direct mail service providers.
  2. Social media, but, unfortunately, Facebook doesn't accept penny auctions' ad.
  3. Banner advertising at popular portals, like, for example, online classifieds.
  4. PPC (Pay-Per-Click) advertising, like Google Adwords, however competition is pretty big
  5. Advertising at websites and forums, popular among penny auction lovers - www.pennyauctionwatch.com, www.pennyauctioncentral.com, etc.
  6. Offline ad - radio, TV, outdoor ad. As it is much more expensive than online ad, think about co-operation with your suppliers.

Sunday, July 6, 2014

Q and A on Penny Auction Software no. 56

Q. What type of audience is most likely to shop on a Penny Auction website?

A. If we are discussing who is the target group of penny auctions, it is necessary to bear in mind the following:
  1. Penny auction is an online service;
  2. Penny auction is a shopping;
  3. Penny auction - it's fun;
  4. Participation in the auction takes significant time.
  5. The auction winner receives the goods with big discount. 
So, we must answer the following questions: 
  • Who likes shopping? 
  • Who are forced to prefer online shopping, and online entertainment? 
  • Who likes to buy products with a discount? 
When we answer these questions, we find out who are the most likely audience for penny auctions.

Friday, June 20, 2014

Q and A on Penny Auction Software no. 55

Q.: We are a merchandising company and would like to use a classic auction website for distributing our goods.  Is it good?

A.: We recommend using classic auction when you have very exclusive or unique goods, for example, paintings.

For general popular articles we recommend penny auction with “Buy Now” option, because such a website is a combination between online entertainment and regular e-shopping.

For making such website even more attractive you may use the option “Buy Now with Discount”, which makes a potential loss of your customers smaller, but your turnover much bigger.

Some experts expressed the view that for being 100% legal, penny auction MUST have the option “Buy Now with Discount” with 100% compensation of used bids, but we have not heard that this would be confirmed by any legal document or court decision

Sunday, May 4, 2014

Q and A on Penny Auction Software no. 54

Q. Are the invoices, provided by your software to end-users, with all taxes?

A. Usually penny auction website does not send any invoices to end-users because of two main reasons:

  • customers are private persons, usually they do not need invoices/bills;
  • after any payment the customers receive email and usually bill from payment processing provider.


If the invoice still must be provided, we have optional software module "Payment Documents". It gives an ability to customer to print the invoice directly from "My Account" section at your penny auction website.
Again, private persons in EU do not get VAT or sales taxes back from the state, so the taxes do not need to be shown.

If your client definitely want that taxes should be shown, please order that option and show us how the invoice should look like with all needed taxes. We will calculate the amount of additional development, if any.

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:

Hello.

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:
http://www.bidclassic.com/penny-auction/464-Florida_villa_in_Orlando 

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.