Online penny auctions fall out of favor

Entertainment Shopping called Swoopo.com U.S. and parts of Europe, has over 150 competitors with names like BidCactus and price saver. Some are by venture capital. Atomico, the investment firm Skype Technologies SA founder Niklas Zennstrom and Janus Friis, has invested $ 6,000,000 in the last month in a start-up called in London Madbids.com.

Venture capital firm Google CEO Eric Schmidt, tomorrow Ventures LLC, recently an undisclosed amount in OohILove.com, a penny-auction site, the place specializes in luxury goods for women such as handbags.

not the audience for this combination of racing and the game growing up with the site, and sites the price of advertising on Google, have addressed such "iPad cheap." Buy keywords on search sites, the primary means of auction sites to sell advertising for products.

Traffic declined in the United States Swoopo 62 percent between January and July, after the company Compete web monitoring. Beezid's is 50 percent and 37 percent BidCactus the same period.

"There were no other out there making these kinds of services, and led the competition," Paul Tsyrlin, said co-founder of a penny-auction site in Atlanta called Wave. "Many people were not prepared to become the difficulty of this enterprise."

Traffic Wave has declined since the beginning of the year, partly because it stopped advertising.

Some customers have decided that the bids on auction sites makes no financial sense Penny. Bidders can spend a total of $ 1500, was able to win that one of them a $ 1000 laptop for $ 50. Sites found that many dissatisfied customers after payment offers left, but lose auctions.

Last year, many auction sites, including BidCactus, Swoopo, and Publisac QuiBids in Oklahoma City, has announced that the losing bidder, the amount she spent on a bidding process in the article apply to buy at retail prices. Those who destroy the profit margins of companies.

"These companies from the coining of money, more money from people who lose money order of the person who donated to make moves," said Tsyrlin. "The swing was huge, and the company has become untenable."

Some of the largest sites are rolling back changes to the rules. Publisac, in San Francisco the "buy now" no longer for popular products such as iPads, citing inventory constraints. Swoopo allows consumers to request money they spent directly on losing bids to only 25 percent of the purchase price. Before the spring, the user can request money to 100 percent. Follow This Link it may help you  - Online Penny Auction Site