- Report: #659591
Complaint Review: xbids - Internet
Reported By:
webyourstuff -
North Reading, Massachusetts, USA
Submitted:
Updated:
-
Author Not Confirmed
Why?
xbids
Internet, United States of America
Phone:
Web:
www.xbids.com
Categories:
Business Rating:
(0)
Tell us has your experience with this business or person been good?
xbids Auctions you can't win, and you pay anyway! Internet
This auction site looked good in an advertisement I saw.
I signed up for a free and temporary account. A credit card number was required for this free account, because, afterall, you may win a bid and buy something.
WRONG. My credit card was charged the full sign up amount ($75) anyway.
It didn't take much to see what the game was. A bunch of people sitting at their computer issuing 1 penny bids on an item. When it gets down to 10 seconds left, each time a bid is made, it bumps the timer up to 15 seconds. So, as long as at least two people are bidding, it doesn't end.
Each bid costs 60 cents. Check out this calculation:
Amazon 3g Kindle, listed as $219.99. Sells everywhere else for $189.
Yesterday, I was watching one that was at $15.00 (roughly). I made well placed bids, and gave up when it reached 24.42. Even though I entered at the 10 second mark, this auction was still live 2 hours later. It eventually closed at $35. +.
$35 * 60 cents = $2100. That's how much people spent in bids on this item. Plus the auction price of $35.00 ... this company took in $2135 for a $189 item. Pretty slick, huh?
Even if it had closed at $5.00, that's $300 in bids: a total of $305 for an item that retails for $189!
I thought, "this is pretty good, I should open a site like this. Trouble is, I can't get my morals to fall that low.
I signed up for a free and temporary account. A credit card number was required for this free account, because, afterall, you may win a bid and buy something.
WRONG. My credit card was charged the full sign up amount ($75) anyway.
It didn't take much to see what the game was. A bunch of people sitting at their computer issuing 1 penny bids on an item. When it gets down to 10 seconds left, each time a bid is made, it bumps the timer up to 15 seconds. So, as long as at least two people are bidding, it doesn't end.
Each bid costs 60 cents. Check out this calculation:
Amazon 3g Kindle, listed as $219.99. Sells everywhere else for $189.
Yesterday, I was watching one that was at $15.00 (roughly). I made well placed bids, and gave up when it reached 24.42. Even though I entered at the 10 second mark, this auction was still live 2 hours later. It eventually closed at $35. +.
$35 * 60 cents = $2100. That's how much people spent in bids on this item. Plus the auction price of $35.00 ... this company took in $2135 for a $189 item. Pretty slick, huh?
Even if it had closed at $5.00, that's $300 in bids: a total of $305 for an item that retails for $189!
I thought, "this is pretty good, I should open a site like this. Trouble is, I can't get my morals to fall that low.
2 Updates & Rebuttals
Flynrider
Phoenix,Arizona,
USA
Sadly
#2Consumer Comment
Mon, November 08, 2010
"It eventually closed at $35. +. $35 * 60 cents = $2100. That's how much people spent in bids on this item. Plus the auction price of $35.00 ... this company took in $2135 for a $189 item."
If most people bothered to do some basic math (as you did) it would become readily apparent that these "penny auctions" are for suckers. Sadly, the world is full of people who don't take the time to do the most basic research before parting with their money. Most will eventually end up posting on this site after their cash is gone.
Ronny g
North hollywood,California,
USA
Sounds to me like this is online gambling...
#3Consumer Comment
Mon, November 08, 2010
..the site may look good in an advertisement..I mean who would pay for an ad and want it to look bad?
I agree the site does not openly admit this is actually closer to gambling then an actual auction..but they do not hide how it works. They do not mention anything about trying it for free that I could find.
The best way to avoid any charges to your account..is to not give out account information. How could this site possibly survive if it was free? You state you saw them take in over $2,000 for a $189.00 item. But it closed at $35.00. So if this site was free..how could they survive by selling a $189.00 item for $35.00. ANSWER: They could not..not for a minute.
So..unlike eBay, they charge anyone who bids, win or lose. Unlike eBay, the time ending means nothing..since it is increased whenever there is a bid...when does it end?? Who knows? If you do not know when it ends, but still pay for bids even if you lose..what else could this be considered but gambling? And like any other gambling site (or casino) it is always in the best interest of the "house" that as many gamblers as possible... lose.
Your report is legitimate and complaint worthy I agree..but if people continue to give out credit card information to ANY websites without investigating what is is they are giving the info for..these rip offs will continue. Anytime you submit credit/debit card/ bank account information out..it is a safe bet you have authorized someone to charge the account. And then it is not always easy or possible to get refunded.
