Penny Auction Software

5.0/5 stars

Start your Own Online Auction Website!

Penny Auction

How does Penny Auction work?

Penny auction which is characterized by the low prices for auctioned items and high profits for the operator is the “win-win” concept.

The price for auctioned items starts at zero and then increases with each new bid. The price increase is usually set to a minimum amount. To place a bid however, the bidder must pay a fee to the operator. The price of one bid is higher than the amount of increase.

Additionally, each new bid resets the timer to allow others placing their bids, too. The most active bidding begins when the auction timer almost expires.

What do you need to know before launch?

How long does it take to start Penny auction?

Out-of-the-box solution with a pre-defined set of functions and modules (which are selected in the order page) together with a standard skin can be deployed within a few business days. The time of deployment depends on whether the client has already created accounts in the payment systems or not.
In case of an individual design creation and heavy customization, the time of deployment is from 15 business days to several months (depending on the complexity). It is critically important that the client invests their time and stays in close cooperation with the development team providing timely responses and approvals of the suggested options.

What costs do I carry when launching Penny auction website?

– Penny auction software cost.

– Monthly costs of the server rent.

– Support. Our experience shows that having an agreement for continuous support is more cost effective than handling each new fixture as a separate order (getting an estimate for each task, approving the estimate, signing an order and making prepayment). E.g., if your server is down and you don’t have an agreement for technical support, you will lose valuable time for settling formalities instead of having the issue fixed immediately.

– Auction administrator salary (in case you are going to hire a person for this position).

– Marketing costs.

What marketing steps I should follow when launching Penny Auction?

Marketing is the king. If you don’t invest enough of you time, efforts and investments in your platform marketing and promotion it won’t be used by people.

Make your auction participants feel like a community. Find the right communication channels. All successful online auction businesses have a strategy for attracting customers to their sites. Without a carefully thought-out plan, turning a profit becomes much more difficult. Various marketing options online businesses have at their disposal include SEO, PPC advertising, email and SMM campaigns.

Additional options include bonus and partner programs which can help either to attract new clients or retain the existing ones. Try as many instruments as you can and find out what works best for you.

Think of your future clients’ retention by organizing special advertising campaigns for existing clients, get feedback and improve your business.

What losses Penny Auction owner can bear at start?

It’s a standard situation when  an auction owner bear losses at the initial stage because the number of users is limited. At first you need to attract users, make them feel the taste of victory and give them a possibility to share it with their friends. About 60% of goods are sold at a loss in the initial phase, but the other 40% cover the losses.

What are the legal aspects of Penny Auction?

Due to the possibility of participants spending a lot of money and still losing an auction, or ultimately spending more than the retail value of the item they end up winning, some analysts have criticized the model or compared it to gambling, even when operating without fraud.

That is why in some countries Penny auctions are under restriction.The open legal question is whether the outcome of the penny auction is determined by chance or by skill. If chance, then penny auctions likely would be illegal gambling and/or illegal lotteries. If skill, then the penny auctions are likely legal, but still dangerous. At the end of the auction, the”winner” has not won the item, but rather has won the right to buy the item. Without full, clear and conspicuous disclosures, a penny auction site may deceive a consumer who does not understand the process.

If you are a penny auction owner, it is critical that you consult with an experienced eCommerce attorney with the background to advise you about the latest information in the online penny auction industry in your country, specifically with regard to fair and safe bidding practices.

How can I receive payments on Penny Auction website?

Merkeleon offers the following payment solutions that can be integrated to the website:

1. Online Payment.

The following payment systems can be integrated in the trading platform upon request:

  1. PayPal
  2. Skrill
  3. eBanking Sofortüberweisung
  4. Giropay
  5. Clickandbuy
  6. Paysafecard
  7. Google Checkout
  8. Bill4Net
  9. Wirecard
  10. PostFinance
  11. QIWI
  12. Robokassa
  13. Webmoney
  14. LiqPay
  15. WalletOne
  16. Epay
  17. OnPay

The only thing you need to do to start using payment system is to register merchant account and inform Merkeleon about registration data. All further steps are taken by us.

2. Offline Payment

Invoice system integration allows a user to generate an invoice and pay for the services by bank transfer, for example.

How do I choose server and hosting service provider?

Merkeleon covers all technical issues, taking care about the hosting and server. We provide dedicated servers for each of the projects which is a guarantee of impeccable platform working.

What kind of customization is available?

All levels of customization are available for auction platform. Additionally, new skins can be developed to create a completely unique design. The flexibility of “Merkeleon” system does not restrict any sort of changes and allows realizing practically any ideas. It is even possible to create multiple designs that can be rotated or switched by one button click in admin area.

What to sell on Penny auction?

See the list of the most popular products from different business spheres to sell with penny auction soft!


  • Watches
  • Purses
  • Jewelry
  • Gemstones


  • Travel packages
  • Trips
  • Cruises
  • Air-tickets


  • Smartphones/telephones
  • Tablets
  • Laptops/Ultrabooks
  • Smart watches


  • Yandex money
  • Webmoney
  • Bitcoins
  • Real money (EUR, USD etc.)
Digital certificates

  • Store certificates
  • Cosmetic services
  • Consulting services
  • Sport activites


  • New cars
  • Used cars
  • Tuning
  • Vintage cars


  • Vacuums
  • Mixers
  • Audio systems
  • TV-sets
Real Estate


  • Hotel rooms rent
  • Apartments rent
  • Summer houses
  • Caravan rent


Training Auctions

Penny Autobid

Day/ Night Auctions

Auctions for Newcomers

Coupon Module

Auction with Bids Compensation

Limited Bids Auction

Auction with Price Compensation

Voting for putting a product up for auction

Affiliate and Bonus module


Contact us for any additional information on Penny Auctions!

“We had pleasure of working with Merkeleon e.U. team in Austria on one of our partner’s project. They have quickly managed to understand requirements  and delivered integration with a complex API. The project involved cross-border funds transfers, payment settlements in different countries and foreign exchange. The team has shown high professionalism and rapid turnaround on all project related matters. We will be glad to work with Merkeleon again.”

Victor Vilmont, Sr Product Manager - PartnershipsWestern Union Business Solutions

“After taking the decision on launching one of the most ambitious auctions among the CIS countries, we chose several potential partners providing services in the area. Merkeleon team proved to be real experts in the online auction development and the professional approach they applied convinced us to use their Merkeleon platform as the basis for our application. Merkeleon always try their best to understand our tasks in the most complete way and bring all our ideas to life.”

Juri Trofimov, CIOBuyon Auctions – Buyon

“The team has been working extremely professional since the day one. We are partners for 2 years now, and I’ve never had a reason to doubt in that. Reliability, honesty and, once again, professionalism are yours undeniable qualities.”

Arthur Fayzullin, CEONews&Score

“Your team is a partner we’ve been looking for. It is so good to know that from both technical and managerial points of view your work meets our requirements. We’re glad to be your partners.”

Andreas Ransch, CEOTrigonon GmbH, Hamburg/Berlin
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