Penny auction sites have been around for a few years but only after a huge advertising blitz have they become household names. Are sites like Beezid.com and Quibids.com a scam? Some people who have lost hundreds of dollars on those sites think so, but like every other thing you participate in the key to not getting ripped off is to read the fine print and know the risks before participating. Beezid and Quibids are “penny auction” sites. Their commercials state that you can win things like an iPad for pennies on the dollar. This part is true, but the devil is in the details. The way that these sites make money is that they charge you for your bids, even if you don’t win the auction. For example, you might see an iPhone at auction for twenty dollars, which is far below the normal price. You decide to place a bid, which might cost sixty cents or so, and if you are the bidder who wins, you get the product for a ridiculously low price. However, if you lose, and if you have bid multiple times, you could be out a hundred dollars or more.
It’s true that you can sometimes come across a product on Beezid or Quibids.com that nobody else is bidding on, but this is rare. When these sites first came out your chances were a lot better for walking away with a bargain. Now that they are widely known about, the chances of getting a good deal on Beezid or Quibids is much less than before.
These sites are much less like auction sites and more like gambling sites. When you gamble you pay for the chance to win more money with the knowledge that you could lose all of your money. This is exactly the way that Beezid.com and Quibids.com work. If you can’t stand the thought of losing all your money and walking away with nothing, stay away from these sites.
Beezid.com and Quibids.com vs. eBay.
It’s hard to compare Beezid.com and Quibids.com to eBay. It costs nothing to bid on items on eBay. If you lose, you lose. On Beezid.com and other penny auction sites, the money you pay for your bids is what keeps the site going and making tons of money for the owners. On eBay it is the seller who pays for most of the costs, not the buyer.
Penny Auction Sites A Scam?
So to answer the question, “are Beezid.com and Quibids.com a scam?”, the answer is not really, but bidder beware. Where these sites fall into “scam territory” is when they lead consumers to believe that they can get expensive consumer items for cheap prices on a regular basis, and don’t fully explain (except in the fine, fine print), that you will most often lose money rather than win things for low prices. If penny auction sites did not make so much money from losing bidders, they would not be able to give away items at such cheap prices to winning bidders. Penny auction sites scam consumers by not properly explaining to consumers how they work. For this reason many are being closely examined by state’s attorney general’s offices.
There are some tricks to winning penny auctions, and some are detailed in the book “Your Strategy Guide; How To Win And Profit From Penny Auction Sites.”
Like any other game, there are tricks which can help you end up a winner more of the time, but you must always remember that like Las Vegas, penny auction sites would not exist if the owners were not winning more of the time than most of the players.