So how do these auction sites work? It’s simple. You may initially look at the auction, see that a playstation 3 valued at $400 sold for only $25, and think, “how in the world, is this auction site making a profit”? The Entertainment Shopping Sites work because the people who do not win the auction, the ones bidding against the winner are making up for the difference. Take for instance a penny auction with bid increments of a cent, which charges bidders $1 per bid. Now if that Playstation 3 gets a final bid of $25, the auctioner would have made 2500 X $1 = $2500.00 for that $400 Playstation. The sites never have poor owners.