06-07-2015, 11:33 PM
You may hear many of the following terms used in the Penny Auction industry.
Terms & Conditions - T&C - Each site has a listed page with terms for bidding on their site. Each bidder agrees to the terms of the site upon registration.
Jumpers/Jumping -- A bidding strategy used by some. A jumper starts bidding on the auction late, well after another bidder (or bidders) has invested a significant amount of bids and time into the auction. Jumpers try to jump in late in an effort to steal the auction for as few bids as possible.
Tagging/Stamping - Being the initial bidder at .01 before the auction goes live. These bidders are stating their intention of bidding on that auction.
Tag & Defend - A bidding strategy used by some. A bidder will tag an auction at .01 or very early and defend by bidding until they win the auction, or bid until they reach the bin amount.
Challenge Bidder - a bidder that comes in early in the auction and challenges the bidder that has been the strongest n the auction to that point.
Third Party Software - Using any outside application, that is not approved by the site, to assist in bidding. All third party software is against the rules on most sites.
Shill Bidder - A shill bidder is usually a real person actually bidding but who is bidding with free bids given to them for that purpose. It also may be an employee or friend of the company.
Bot - Usually a computer script that is designed to bid at a specific time, usually at the last moment. Bots can either be used by a non-trustworthy penny auction site or by bidders using illegal third party bidding software.
Clicker - Someone who clicks the bid button each time to place a bid instead of using the auto-bidding feature.
Auto-Bidder - The feature on a penny auction site that allows you to automatically bid on an auction using the parameters you set. Called by different names depending on the site - bid agent, bid butler, bid-o-matic and generally referred to as an auto bidder. This site tool bids on your behalf.
BIN - Buy It Now - If a site has a BIN feature it means that you can buy the item and either get all your bids back that you placed on that auction or you can apply the value (or portion) of the placed bids towards the purchase price. Each site has different BIN rules. Some also let you BIN even if you haven't placed any bids on the item.
Going to BIN - Placing enough bids to pay the BIN price trying to win the auction is "going to bin." This is also known as "binning it." To calculate how many bids it takes to reach BIN, divide the retail price of the item by the price you paid for each of your bids (your Bid DNA).
Bid DNA - Real cost for bids, including bids won in auctions, and free bids. To figure bid DNA, divide the price paid for bids by the number of bids you have had in your account. Ex. 100 bids cost $60, $60 divided by 100 is $.60 per bid cost = Bid DNA.
LSC/Bottom Bidding/Sniping - last second bidding - A strategy used by some to keep the auction open and try to exhaust or outlast all other bidders.
Team-Playing - When two or more bidders work to together to influence the outcome of an auction. Some examples are "Hand-Off" and "Tag-teaming."
Hand-Off - This is a term when two (or more) bidders work with one another. The current bidder will hand off the auction to another bidder to take over bidding at an agreed upon time.
Tag-teaming - When two or more bidders work with another, bidding in a fashion to allow one or the other to win the auction. One strategy is to make it appear as if there is more activity in the auction by both using an auto at the same time and one cutting quickly to let the other team member win.
Another tag teaming strategy is to run up an auction of any other bidder by taking turns keeping the auction open so their victim pays more than they should have.
Filling Your Limits/Locks/Locked Out - Penny auction sites have win limits and if you fill your limits it means you have won as many auctions as the site allows for that period of time. You are not allowed to bid until your limits open up again.
Power Bidder (PB) - A power bidder is a bidder who has established that they will use an extremely high amount of bids in order to win. Becoming a power bidder is a penny auction strategy, "PB's" bid till they win no matter how high. Their hope is that they might overpay in the beginning in order to get incredible deals in the future because others know they won't quit bidding.
PB's makes it known that they are going to bid on an item. This often causes other bidders to not even place any bids because they are afraid the PB is willing to pay a high price so it is a waste of time even bidding. They also won't bid because the PB will punish the competing bidder by driving up the bids on their auctions.
Imposter - Someone who appears to copy (or resembles) an established bidder's name in order to take advantage of their reputation.
Bid Throttling/On Top - Overbidding another bidder each time to keep themselves on top as the current winner. Actual throttling is constantly clicking the bid button even if you are already high bidder. Some sites don't allow the latter definition of throttling.
Bid Collector - Someone who focuses on winning bid packs as a big part of their strategy and building up a large volume of bids. These bidders are also referred to as bid hoarders.
Chargebacks - Reversing charges on a credit card or PayPal for services or items not received but paid for. Normally the deadline for chargebacks is 180 days for credit cards; 180 days for PayPal, from the transaction date.
Bidder Collusion - The most common type of collusion occurs when bidders conspire to reduce the level of competition and therefore reduce the amount paid for an item.
In penny auction terminology, bidders agree to NOT bid against others. This reduces competition and allows for each one to win an auction very cheaply and with very few bids.
In on-site auctions, there are a small number of regular buyers who form a bidding group. The auction buyers all agree in advance to certain levels of bidding. The other members driving up all of the offending member's bids can punish any member of the bidding group who violates the rules. More common are informal bidding groups. This collusion can be overt without any actual conversations occurring. Just a look or a nod is enough to make the collusion agreement. In a case where colluding bidders are buying many items, they may decide to engage in bid rotation by making alternating bids allowing first one bidder then the other bidder to have the winning bid on items.
Another example of a bidder influencing auction bids is the case of the heavyweight bidder that makes it known that they are going to bid on an item. This often causes other bidders to not even make opening bids either because they are afraid the powerful bidder is willing to pay a high price so it is a waste of time even bidding or because the heavy weight bidder will punish the competing bidders by driving up the bids on other items.
Site Collusion - Site collusion involves trying to increase the amount of the final bid. This can be done by artificially increasing the number of bidders by using a registered bidder as a shill. Sites also can influence the outcome of auctions by revealing the bid status of bidder accounts, or by revealing the bid habits of another bidder.
Terms & Conditions - T&C - Each site has a listed page with terms for bidding on their site. Each bidder agrees to the terms of the site upon registration.
Jumpers/Jumping -- A bidding strategy used by some. A jumper starts bidding on the auction late, well after another bidder (or bidders) has invested a significant amount of bids and time into the auction. Jumpers try to jump in late in an effort to steal the auction for as few bids as possible.
Tagging/Stamping - Being the initial bidder at .01 before the auction goes live. These bidders are stating their intention of bidding on that auction.
Tag & Defend - A bidding strategy used by some. A bidder will tag an auction at .01 or very early and defend by bidding until they win the auction, or bid until they reach the bin amount.
Challenge Bidder - a bidder that comes in early in the auction and challenges the bidder that has been the strongest n the auction to that point.
Third Party Software - Using any outside application, that is not approved by the site, to assist in bidding. All third party software is against the rules on most sites.
Shill Bidder - A shill bidder is usually a real person actually bidding but who is bidding with free bids given to them for that purpose. It also may be an employee or friend of the company.
Bot - Usually a computer script that is designed to bid at a specific time, usually at the last moment. Bots can either be used by a non-trustworthy penny auction site or by bidders using illegal third party bidding software.
Clicker - Someone who clicks the bid button each time to place a bid instead of using the auto-bidding feature.
Auto-Bidder - The feature on a penny auction site that allows you to automatically bid on an auction using the parameters you set. Called by different names depending on the site - bid agent, bid butler, bid-o-matic and generally referred to as an auto bidder. This site tool bids on your behalf.
BIN - Buy It Now - If a site has a BIN feature it means that you can buy the item and either get all your bids back that you placed on that auction or you can apply the value (or portion) of the placed bids towards the purchase price. Each site has different BIN rules. Some also let you BIN even if you haven't placed any bids on the item.
Going to BIN - Placing enough bids to pay the BIN price trying to win the auction is "going to bin." This is also known as "binning it." To calculate how many bids it takes to reach BIN, divide the retail price of the item by the price you paid for each of your bids (your Bid DNA).
Bid DNA - Real cost for bids, including bids won in auctions, and free bids. To figure bid DNA, divide the price paid for bids by the number of bids you have had in your account. Ex. 100 bids cost $60, $60 divided by 100 is $.60 per bid cost = Bid DNA.
LSC/Bottom Bidding/Sniping - last second bidding - A strategy used by some to keep the auction open and try to exhaust or outlast all other bidders.
Team-Playing - When two or more bidders work to together to influence the outcome of an auction. Some examples are "Hand-Off" and "Tag-teaming."
Hand-Off - This is a term when two (or more) bidders work with one another. The current bidder will hand off the auction to another bidder to take over bidding at an agreed upon time.
Tag-teaming - When two or more bidders work with another, bidding in a fashion to allow one or the other to win the auction. One strategy is to make it appear as if there is more activity in the auction by both using an auto at the same time and one cutting quickly to let the other team member win.
Another tag teaming strategy is to run up an auction of any other bidder by taking turns keeping the auction open so their victim pays more than they should have.
Filling Your Limits/Locks/Locked Out - Penny auction sites have win limits and if you fill your limits it means you have won as many auctions as the site allows for that period of time. You are not allowed to bid until your limits open up again.
Power Bidder (PB) - A power bidder is a bidder who has established that they will use an extremely high amount of bids in order to win. Becoming a power bidder is a penny auction strategy, "PB's" bid till they win no matter how high. Their hope is that they might overpay in the beginning in order to get incredible deals in the future because others know they won't quit bidding.
PB's makes it known that they are going to bid on an item. This often causes other bidders to not even place any bids because they are afraid the PB is willing to pay a high price so it is a waste of time even bidding. They also won't bid because the PB will punish the competing bidder by driving up the bids on their auctions.
Imposter - Someone who appears to copy (or resembles) an established bidder's name in order to take advantage of their reputation.
Bid Throttling/On Top - Overbidding another bidder each time to keep themselves on top as the current winner. Actual throttling is constantly clicking the bid button even if you are already high bidder. Some sites don't allow the latter definition of throttling.
Bid Collector - Someone who focuses on winning bid packs as a big part of their strategy and building up a large volume of bids. These bidders are also referred to as bid hoarders.
Chargebacks - Reversing charges on a credit card or PayPal for services or items not received but paid for. Normally the deadline for chargebacks is 180 days for credit cards; 180 days for PayPal, from the transaction date.
Bidder Collusion - The most common type of collusion occurs when bidders conspire to reduce the level of competition and therefore reduce the amount paid for an item.
In penny auction terminology, bidders agree to NOT bid against others. This reduces competition and allows for each one to win an auction very cheaply and with very few bids.
In on-site auctions, there are a small number of regular buyers who form a bidding group. The auction buyers all agree in advance to certain levels of bidding. The other members driving up all of the offending member's bids can punish any member of the bidding group who violates the rules. More common are informal bidding groups. This collusion can be overt without any actual conversations occurring. Just a look or a nod is enough to make the collusion agreement. In a case where colluding bidders are buying many items, they may decide to engage in bid rotation by making alternating bids allowing first one bidder then the other bidder to have the winning bid on items.
Another example of a bidder influencing auction bids is the case of the heavyweight bidder that makes it known that they are going to bid on an item. This often causes other bidders to not even make opening bids either because they are afraid the powerful bidder is willing to pay a high price so it is a waste of time even bidding or because the heavy weight bidder will punish the competing bidders by driving up the bids on other items.
Site Collusion - Site collusion involves trying to increase the amount of the final bid. This can be done by artificially increasing the number of bidders by using a registered bidder as a shill. Sites also can influence the outcome of auctions by revealing the bid status of bidder accounts, or by revealing the bid habits of another bidder.
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