Responsible,development,penny, ecommerce Responsible development of penny auction sites
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Ever since penny auction sites first emerged on thee-commerce scene they where fault to a lot of accusations from differenttrading organizations and consumer rights groups questioning whether or notpenny auctions use a scam business model to operate. It's a complicated debate that even managedto attract the attention of the US federal trade commission as they issued awarning note asking costumers to be extremely careful when using PA sites. Now to be completely true in answering thisquestion we have to first understand what penny auctions are in truth and atwhat levels do dishonest businessman initiate scams models and is there aresponsible and legitimate approach to developing and operating pennyauctions. For some reason a lot ofpeople think that penny auctions are discount sites and think of them as ofsites like groupon and other daily deal sites. At a first glance this might betrue because in both cases the site's lure in customers with extreme discountson eye catching products. But the goalsthe two sites have are completely different and from a costumers point of viewmight seem somewhat sinister. Daily dealsites encourage you to subscribe to the mailing list to stay updated on all thefantastic deals in your aria this in return provides them with a big targetaudience with personal information that allows them to stay an effectivemarketing and advertisement platform for companies looking for a fast pacedmarketing campaign. Penny auction siteson the other hand try to attract users because they need high volumes oftraffic to stay profitable. If we takea short walk back in time the first penny auctions as far as I remember wasSwoop and the tag line they advertised was "entertainment shopping" and that's exactly what it is. Pennyauctions might offer attractive bargains but they tend to provoke socialcompetitive behavior using for their advantage certain human philology patternsas well as basic game theory principals to achieve high levels ofengagement. Even the currentorganizations that present penny auctions and software providers is titled:entertainment auction association. Soclaiming that the model itself is a scam is unfair, and comes from a misunderstandingrather than rational analysis. Scamsoccur on the operating level when owners use either software methods to scampeople (boy bidders, timer lag control etc) or methods that can be met anywhereelse and are in no way specific to the industry for instance simply not sendingwon item to auction winners. Responsibledevelopment Over the past years theindustry matured and managed to learn from past mistakes. Software providersthat want to be taken seriously no longer advertise the use of bidbots toensure success and even more than that don't offer them even when askedadvising for alternative methods that give a fighting chance to a penny auctionin the longer run. A lot of developershave turned their time and effort towards legitimate modules and features thatcan make a penny auction a truly pleasant experience. For instance a lot ofpenny auction software providers attracted to offer an Buy now feature or buynow with discount. That allows a costumer to buy the auctioned item at any timevia the retail price or with a discount calculated depending on the amount ofbids he spent on the auction, so even if you haven't won the end auction youcan still get your money's worth. Forpromotional courses penny auction software developers review a lot ofpossibilities for improvement and occasionally whip up new features to keep theindustry healthy and riding on the cutting edge of modern technology. Thingslike "Virgin" auctions -auctions restricted only to those who haven'twon before and social interaction rewards (bids for facebook likes) are beingactively developed. Providing a solidplatform for responsible development and operations of a penny auction sites,so I wouldn't say it's fair to red flag the industry as a whole but sadly forwhatever reason at this point it seems to attract quite a few dishonestentrepreneurs and caution is a thing well advised.
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