It’s an auction site with a difference. A bid increases the price by $0.01 (one penny). I think it also extends the auction time by 40 seconds. (Except that auctions get suspended between midnight and 10 am. I think.)

There is a catch. It costs you $0.80 to place a bid.

Here’s an example: An item sells for $25. This means that 2,500 bids were placed on it, and the seller (I’m presuming Pennylord is selling their own stuff) made $2,000 is selling fees.

I’m currently looking at a $250 Lowes Gift Card which is in its final moments. It’s currently selling for $4.34, meaning that Pennylord is already making a profit on the card (even if they purchased it at retail!) There’s about five or six people bidding against one another for this, meaning that each person has already spent over $50 for this card.

What a unique business model!