Avoid the Penny Auction Scam

Penny auctions, you have probably seen banner ads in your browser and even commercials on TV. The auction prices sound too good to be true. That is because they are! It is a scam that could cost you more than buying the item directly.
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Penny auction sites, including QuiBids, Beezid, Deal Dash, and others, advertise that you can purchase items for pennies on the dollar. For example, you could get a $500 Apple iPad for as little as $50. WOW! That sounds like a great deal.

When you sign up for your "Free" account, they give you a nominal amount of bids for free. You have to purchase the rest. Bids are bought in bundles and, of course, if you spend more, the bids will cost a little less. The introductory offer is usually about $.60 a bid.

After you have purchased your bids, you can go try to win your iPad. The bidding starts at $0.01, but you will only see that price when an item is first posted. Each time you bid, it costs you a bid token and the price goes up $.01. So if they sell an iPad for $50.01(+shipping and handling), then there were 5000 bids on that item. Let's assume the average user paid $.50 per bid. The penny auction site just pocketed $2,550. That's the penny auction scam.

"Yeah, but somebody got that iPad for $50!", you say. Sure, but how many bids did that person use up to get there? How many hours did they spend waiting for that specific item to close, only to not win it and have to start all over? What are the chances that you will be the one to have the last bid when the price seems so rock bottom for the item offered? The probability is very, very low. Add to this the confusing and distracting way the items are presented on penny auctions sites, it is hard to focus on only bidding on one item. If you fall into the trap of bidding on more than one item, it becomes much more difficult to know exactly how you have spent on that item.

Let's say you spent $100 on 200 bids at $.50 per bid. For an item with 5000 bids, that's only 4% of the bids. So AT BEST, you have a 4% chance of winning the item. Better odds than Vegas perhaps, but like a casino, penny auction sites don't stay in business by giving money away.

So, you might get lucky and win an item for a good price, but you are going to spend a lot of time and money to do it. It is more likely that you will throw money towards an auction and never win that iPad. The penny auction site makes money no matter what.

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August 28, 20161 found this helpful

We went to that site and ended up having to have viruses and malware removed...bad sites

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September 1, 20160 found this helpful

You need to do more research on Deal Dash. I have never seen any bids sell for 50 each. They are usually 20 cents and have sale for 13 or 14 cents each. At 13 cents each you can get 300 for $39. You can book a bid buddy that will bid for you so you don't need to stay on site all the time. Holidays and a few days before them, the won item is free. There is free shipping. Usually you pay a nominal fee from 1 cent to 50 cents. SO that is your cost plus the bids. I have found that if an auction is starting in the afternoon or at night.

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there is a better chance of winning. I last won a kitchen aid mixer for free and paid 1 cent. I used 20 bids. You do need to know the cost of an item and not get caught up in the bidding. Right now 9/2/2016 at 12:51 there are free auctions. As for eBay. I have bought and sold on there for 1o years now. The only trouble I had was when I ordered something from Mexico. It took longer than it should. Found out later the seller was sick and he sent me something extra to make up for the lateness. Again do more research. I don't know about other auction sites.

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