Internet auction is a successful business model for the online penny auction sites are known in Germany under the name experience auctions or also known as Penny auctions. The time of experience auctions began in 2005, when the auction house Telebid, later was renamed Swoopo, founder of entertainment shopping AG. Internet auctions have become one of the successful business models in E-commerce. The ever-increasing number of Penny auctions testifies to the popularity of these platforms. Penny auction is a type of auction of American auctions, where the bidder with the past and thus highest bid wins the auction.
All bids are subject to a charge and on average amount to 0.50 and thereby are not refundable. The shipping of the goods is usually 10 days after payment. Also, customers have the opportunity again to return purchased items within four weeks. At the penny auctions are high-quality fashion items, like jewelry of trendy brands and luxury designers, Luxury – handbags, accessories, wellness coupons or about watches admitted. The men who are notable for their fashion sense, can bid here also many products. A distinction is also lowest bid auctions/bid auctions and reverse auctions/down auctions. The lowest and only one bid is awarded the contract to the lowest bid auction.
The highest bid, which is the only after the expiry of the time wins the bid auction accordingly. Called also reverse auction reverse auction. An example is the auction of Dutch tulips. The starting price is visible here, and decreases in the course of the auction. The principle of the auction of Aufdeck is similar, except that the price is covered. Internet auctions for consumers are one of the earliest and successful innovative business models. Although they have been followed up barely in their early years by economists, this underestimation ended at the latest, as among the few survivors of the new business models Economy was mainly the auction model. Internet auctions are today as an example of successful E-commerce. More about Penny auctions here softau.de