Penny auction sites do not work well for everyone. Some users want to save money on auction sites, others look for unique products.
Penny auction sites offer great value-for-money, but for users who truly understand how these sites work. In other words, penny sites are high-risk, high-reward platforms.
Many established penny auction sites offer a guaranteed return of spent money for losing bidders. That offer also has a caveat in it.
As a starting point, DealDash isn’t for you if you are looking for quick cash rewards. Unlike many e-commerce and auction sites, you cannot resell the items on DealDash.
Here are a few compelling reasons for you to avoid DealDash, especially if you are not familiar with the auction site mechanism.
1) DealDash is not for novice bidders:
Any auction site will set the house rules to benefit the company first. DealDash isn’t an exception to that concept too. You’ll have to buy the bids pack before you can start the auction bidding.
Newcomers usually bid with more enthusiasm, but emotions don’t really work with auctions. Amateur bidders plan their bidding strategies well.
Most of the experienced bidders automate the bidding and set the budget limits. They identify the products with low competition. DealDash isn’t made for you unless you’re a novice bidder unless you learn how auctions work.
2) DealDash Does not offer International Shipping Directly:
If you live outside the US, you may still participate in the auction process. But DealDash does not ship outside of the US currently.
The site isn’t the best match for you if you’re looking for small-priced items with low volume purchases. Unless you’re interested in buying large volume or high price products, DealDash does not offer good value for you.
International shipping charges on most of the products can easily outweigh the product price itself.
3) You Cannot Resell On DealDash:
If you’re looking to make some quick profits by short-selling, DealDash does not offer the reselling option. In fact, all the inventory of products is selected and put on sale by them.
They secure branded items from retailers and put them on auction on their site. You can buy the items through bidding or directly with a “buy it now” option but cannot resell the item.
Business owners looking to resell or set up a store account have been deprived of the opportunity too. There is no store account or selling on DealDash like other auction sites. It practically limits the e-commerce function to a buy-only website experience.
4) You Lose All If You Do Not Buy:
This risk is particularly true for beginners. Remember, you bid several times to win an item. Many bidders at the same time participate in the bidding for each item.
There can be only one winner. The only way for you to save money is to buy the item at the listed price if you fail to win the auction.
In other words, you should only bid for the items you’re looking to buy. At first, you can strategize to win the item at a low price, else buy it at the listed price. You can save money on shipping charges with won items too.
For large product prices, it may not seem a lot of money, as the bid price is usually a few cents. However, it may be a significant amount without buying low-priced items.
5) Product range, Brands, and Pricing may not meet the Expectations:
Top-tier auction sites like eBay offer plentiful branded products and an unending range of products. Penny auction sites like DealDash come with limited choices of brands and product ranges. You may not find an ideal product with the brand tag you’re looking for.
If you participate in the bidding, each product auction starts at $0.00. You may win an item for as low as $0.01 (hypothetically). In some cases, if you win an item through bidding, the total cost of bids may be much more than the listed item price.
DealDash offers a wide range of branded products. The problem with these branded items though remains for the product quality. DealDash discloses the fact that they buy overstock and liquidation inventory.
Large retailers put the overstock or liquidation items on sale for stock clearing. No hot selling items are termed as “liquidation” inventory anywhere.
If you have just started outbidding on any penny auction site, be mindful of the potential risks. As a beginner, you need to be aware of certain realities about penny auction sites.
You can do well with DealDash if you can keep these noted points in mind and carefully plan the bidding strategy.