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While online penny auctions and traditional auction websites, like eBay, both occasionally offer a Buy-it-Now feature, they differ in terms of the time limit system, payment process, and entertainment value. In short, penny auctions are more intense versions of sites like eBay.

Traditional auctions, like those available on eBay, often drag the auction experience out to a week or more. When the time runs out, whoever bids highest wins. For instance, they may auction off an iPod for 1 week with a minimum bid rule of $20. However, there will be stiff competition to get such a low price on the item. After a whole week of everyone trying to outbid each other, the item may sell fairly high, close to the retail price, or even higher.

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