> 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/~/revisions/PEkBh9esJi9c1nGTtNyz/auction-rules-and-bidding-features/penny-auctions.md).

# Penny Auctions

### ℹ️ What is Penny products?

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="https://272152876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4mjuzufW4nQwe72Yww3t%2Fuploads%2FHlJscBBA9N28C0SdHB0V%2F2025-12-26_11-28-03.png?alt=media&amp;token=f7d265a1-ea85-438a-8ffd-0addd89c1700" 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="https://272152876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4mjuzufW4nQwe72Yww3t%2Fuploads%2F0bG7u6yqXRZ0npky3ij4%2F2025-08-11_15-57-14.png?alt=media&amp;token=bb34158d-339c-433a-b8dc-b23074d7624d" 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="https://272152876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4mjuzufW4nQwe72Yww3t%2Fuploads%2FwkxXsW0pnS3LuV5RmfOZ%2F2025-08-11_15-58-05.png?alt=media&amp;token=6b884617-b3aa-43f7-8f6b-bf2131a09dae" 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: Activate penny auction

1. Go to the app > click **Auctions** > open an auction you want to set up
2. Find **Advanced settings** > enable **Penny auction**
3. Click **Save**

<figure><img src="https://272152876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4mjuzufW4nQwe72Yww3t%2Fuploads%2FdFgR0yjNi6TgsVdkM90t%2F2025-11-20_14-04-28.png?alt=media&amp;token=d37293a1-3cc3-487e-9fec-e18073958a71" 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="https://272152876-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4mjuzufW4nQwe72Yww3t%2Fuploads%2FBRpYJ83qvXXzVMjUg2PL%2F2025-08-11_16-05-30.png?alt=media&amp;token=a3e99885-a581-4bd7-89cc-fb2e1e67b525" 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

***

### ▶️ Tutorial video

{% embed url="<https://www.youtube.com/watch?v=rSmceJ1_Vk0>" %}

***

**🙋 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.