PennyAntix Discloses Use of “Automated Bidding System” to Cover Costs

Have you bid on PennyAntix.com? In their terms and conditions they admit to using an automated bidding system, aka “bots” to bid in their auctions so that they can cover costs of operating a penny auction site.

From PennyAntix’s terms & conditions:

“Advanced Bidding System

We have implemented a system to allow smaller auction sites to offer a larger range of products to it’s members. We strongly believe that it’s best to offer quality products and quality service to our members. As with all businesses we need to maintain a profit margin to cover operating expenses, wages, ect. in order to provide customer support, products and fast reliable delivery. Many site do not factor all this and end up not being able to deliver what they offer. This is why many sites are closed and no longer in business. We use a automated bidding system on some of our auctions chosen at random. We have chosen this system to be able to deliver a large quantity of products at a lower than retail cost to our consumers. You may read more on this here.”

pennyantix.com

“Bidding System

FAQ Regarding our Bidding system

Answers to the most common questions.

Answers:

  • Does this effect all products? – NO it is random based of sales from a 28 day period and varies on each product offered.
  • Can I win products with just a few bids? – YES, if you are the last bidder when the timer reaches 0.
  • I seen iPods go for as low as $3.50 on other sites can I expect this here? – Depending on the amount of users biding on your chosen product, YES.
  • Why? – To deliver more items at a low cost and have many satisfied members rather than one hundred members and one satisfied customer.

How does this benefit me?

It allows us to provide all products in a timely manner with free shipping.

Further Benefits

As with all auction site some products get over sold due to user competition. If a item is sold under these conditions any additional income generated over our rrp is divided evenly across the remaining auctions running for that day lowering the actual costs to offer even better deals for our members.”

 

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