In one line, Quibids is a penny auction. For those who do not know what is penny auction, it is a special type of auction (also called as bidding fee auction) that differs from the traditional auction sites like eBay. Here are the main differences:
- Bidding Cost: In traditional auctions, bidding is absolutely free. This is so for sites like eBay. However, in penny auctions like Quibids, each bid costs money. At Quibids, every bid you place costs you $0.60.
- Bid Value: In traditional auctions like eBay, you can place any bid value that you want. In penny auctions like Quibids, you are only allowed to bid to increase the price by 1 cent. This means you spend $0.60 for a bid and increase the price of the item by $0.01.
- Timer Increment: In traditional auctions, there is a timer that counts down to zero, never resetting and when the timer hits 0, the last and highest bid placed is the winning bid. In Quibids, the timer increments each time a bid is placed by 15-20 seconds. This happens every time you bid.
- Buying Obligation: Traditional auctions make money through the selling price of the item and therefore if you win an auction, you must purchase it. At Quibids, the main source of money is through the bids, so you are not obligated to buy a winning item but it is almost always in your best interest to do so.
- Loss and Risk: Traditional auctions can never get you in the red - if you lose an auction, you lose no money. However, at Quibids, if you are not careful, you can lose a lot of money.