> For the complete documentation index, see [llms.txt](https://docs.tipo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tipo.io/tipo-auction/auction-rules-and-bidding-features/charge-per-bid-penny-bidding.md).

# Charge per bid (Penny Bidding)

### ℹ️ How it works?

A **Penny product** (also known as **bidding fee**) is a non-refundable product that customers must purchase in order to place bids in a penny auction.

Instead of bidding for free, customers use bidding turns.\
Each bid consumes one turn.

Simply put:

* Customers buy Penny products
* Penny products give them a number of bidding turns
* Each bid = 1 turn
* When turns run out, customers must buy more to continue bidding

#### Why use Penny products?

Using Penny products helps you:

* Prevent fake or spam bids
* Ensure bidders are serious and committed
* Earn revenue from:
  * bidding fees and
  * the final winning bid

In many cases, the total revenue from bidding fees + winning bid can exceed the product’s original price.

***

### 🛠️ Admin: Set up Penny products

#### Step 1: Create Penny products in Shopify Products

Create penny products in Shopify **Products**

<figure><img src="/files/qujruWAid5RAe5WBOg5U" alt=""><figcaption></figcaption></figure>

Example:&#x20;

<table><thead><tr><th width="169.25006103515625">Penny product</th><th width="207.0499267578125">Bids included</th><th>Price</th></tr></thead><tbody><tr><td>Basic</td><td>10 bids</td><td>$5</td></tr><tr><td>Advanced</td><td>30 bids</td><td>$10</td></tr></tbody></table>

#### Step 2:  Add penny products in Tipo app&#x20;

1. Go to the app > click **Penny products** > click **Create new penny** button&#x20;
2. Enter product detail

&#x20;In **General** session, enter the penny product **Name** and **Number of bid**

<figure><img src="/files/Rz0kiqiBHEyO2Cj4pwAj" alt=""><figcaption></figcaption></figure>

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

For example: link the penny products "Basic - 10 bids" with Shopify product "Basic - 10 bids"&#x20;

4. Click **Save**

<figure><img src="/files/FEguTCL0ID2GCgtaKgcm" alt=""><figcaption></figcaption></figure>

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

#### Step 3: Turn on "**Charge per bid" option**

1. Go to the app > click **Auctions** > open an auction you want to set up
2. Find **Additional** **options** > turn on **Charge per bid** option
3. Click **Save**

<figure><img src="/files/K0lBiznRDeL8pqMRaVUP" alt=""><figcaption></figcaption></figure>

***

### ✅ **How penny products work?**&#x20;

When a customer tries to bid without enough turns:

* A message appears asking them to buy Penny products
* A popup shows available Penny product options
* Customer selects a product and clicks **Buyout**

<figure><img src="/files/Byq9sVw36EC37W8K29xQ" alt=""><figcaption></figcaption></figure>

Example:&#x20;

**Scenario:**

* Customer buys **Basic – 5 bids – $5**

**What happens:**

* Customer now has **5 bidding turns**
* Each time they click **Place bid**, 1 turn is used
* After 5 bids → turns = 0
* Customer must buy another Penny product to continue bidding

***

**🙋 Still need support?**

If you still need help, please feel free to contact us at <hi@tipo.io>. We’ll be happy to assist you further.