What is Penny products?

Penny product, also known as bidding fee, is  a non-refundable fee for bidder to place each incremental bid.

Simply, bidders need to buy the penny product to buy the bidding turns.

Benefits from penny products:

• Prevent fraud bids in auctions
• The auctioneer profits from both the fees charged to place bids and the payment for the winning bid; these combined revenues frequently total more than the value of the item being sold

Set up Penny products

1. Create penny products in Shopify Products

2. Go to the app > click Penny products > click Create new penny button 

4. In General session, enter the penny product Name and Number of bid

5. In Product session, click Select product to link button to link to the penny product created in the step

6. Click Save

 7. After that, go to the Auctions > Profiles > Advanced settings > Enable Penny auction > Save

Admin can create multiple penny products and each one costs a certain amount of money and a certain number of  bidding turn.

How penny products work? 

• Admin/Host  sets up the penny products 
• Bidders log  in their account, there’s a link to buy penny products. A penny product is equal to the number of turns the bidder can place a bid.

For example: Admin can add 2 types of penny products as below. 

• Basic – 5 bids – 5$
• Advanced – 20 bids – 10$

If the customer wants to place the bid on an active auction, he must buy one of the penny product types – Basic (for ex).  After paying for the Basic penny product, he will have 5 turns of bidding in the running auction.  

When the 5 turns is out, he must buy another penny product to continue placing bids.