August 23rd, 2013
Ever see a sidebar ad like this one? QuiBids is an auction site, but it may not be as great a deal as it seems, and many consumers are worried it’s a scam. Everyone has to pay to bid, and you don’t get that money back if you lose the auction. A bid costs 60 cents. There is an option to “buy it now” if you lose, but you must pay full retail price for the item plus the cost of the bids you made.
According to Business Insider:
In actuality, if you’re committed to winning the auction, but there’s also at least two others committed, you’ve got yourself a pretty good bidding war. Let’s say three users want an Xbox 360 worth $300.00 and each are committed to winning the auction for $200.00. Each of them uses about $120.00 in bids to win it at $200.00, but only one can win. So, two people have lost $120.00 each, while the other is forced to pay $120.00 for bids + $200.00 for the final auction price + $12 in shipping, which equals out to well above the original $300.00 price tag. And they probably weren’t the only ones bidding, which means QuiBids probably made over $400 from bids just for hosting the auction.
There are a lot of complaints online about this auction site, with many accusing Quibids of being a scam. The only way to assure that you get a fair price seems to be to use the “buy it now” option without bidding first, but there are so many fees and the process is so confusing that maybe it’s better to just shop elsewhere.
See our article on penny auctions for more information.
Sidebar ads appear on the edge of a webpage.