Auctions have been around since 500BC. Many websites are already following the business model built around years of transformation. One such auction-based site that adheres to auctioning products which can be quickly brought by the customers.
But recently, there has been a lot of controversy regarding the auction strategy. If you are curious to read an in-depth DealDash review of their business model, you have come to the right place.
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What is DealDash? How does DealDash work?
DealDash is a popular penny auction site. Started in 2009, the company runs bidding for products and offers at a price. Based in the US, it is one of the longest-running auction websites operated in the country today.
Founded by William Wolfram, who generated $500,000 in affiliate sales in years. Using the money, he started DealDash with a business model used in prior sites. But it is distinct from its predecessors because the losing bidders can apply for cash, which they otherwise spent unsuccessfully on bidding for items.
How does DealDash Work?
As a penny auction, it works differently than conventional sites. For each item, the price increases by one cent on every bid. This offers a much lower price for the items than intended. But paying money ahead of time for each bid is essential.
After placing the bid, it increases the auction timer for 10 seconds, and also the auction price will increase by one cent. The person who can buy the item is the person who reaches zero and will be able to buy the item at the bid price.
Before starting to bid on items, you need to purchase the bids ahead of time. The bids price is not definite; sometimes, it may cost more or sometimes at less. The process is that you can use those bids and win something on auction or more likely spend all the bids and end up with nothing.
To save the customers from having a total loss, DealDash allows customers to purchase the item anyway by buying it now, usually known as BIN price. This allows the customers to use DealDash to purchase items at retail prices so that users don’t have to run out of bids.
For example, you see a new Apple IPad for sale on the sire, and you want to purchase one. But the auction ends in 5 minutes. So within this time. You have to place the bid during the last 10 seconds of the auction.
The auction’s timer gets down to 10 seconds and places your first bid in 3 seconds. During the last second, someone can place another bid and replace you as the winner.
What are the Features of DealDash?
DealDash is a great auction site as there is nothing significant to do. One of the particular types of auction they offer is the “No Jumper” auction that helps restrict the competition. The bidding will close for new bidders once the auction price reaches a specific price.
This feature keeps the other bidders who enter the auction that has been running for a long time. Bidders can purchase the bids of 100 and various sizes. Not only that, but they also offer daily discounts depending on the bid pack.
The sales generated by selling these bids will fund the highly discounted auction prices on the website. When it comes to the quality of goods available in great deals, it buys stocks from premium quality brands and liquidators.
- On DealDash, winners have the option to buy items even if they don’t win the auction.
- If you use the Buy it Now option, you can get the bids back for free in addition to great deals,
Is DealDash Legit, or is it a Scam?
Over the years, DealDash has received many criticisms, and people even compared the sites to gambling. This is because people lose money on bidding for items. But despite the criticism, all the rules of the auction are specified on the website, so people are aware of the risks involved.
That’s why to get away with these hard criticisms, the website has introduced an option of “Buy it Now” so that any user can buy the product despite losing the bid. So is DealDash a Scam? Frankly, No, there are no proven records of any scam involved, such as shill bidding practices or computer usage to bid.
Usually, the tag is received by people who lose a lot of money as they are not so fortunate to receive the backlash of an auction website. Therefore, for healthy usage, it is better to limit the bidding on these websites.
DealDash refunds your money on your first bid back if people don’t want anything. But make sure to remember that only the first bid is fully refundable. After that, buyers must be beware.
Another reason is that the usage of DealDash is quite addictive as users tend to spend way more time on the site once they like it. Come to think of it; it even gets fun to watch the winners list and how much the items have been sold for.
In one way, winning low price items is very easy, but on the other hand, winning high-end items such as cameras, Apple products are relatively low. If the user gets greedy, losing money is a given.
Our recommendation would be not to win an item priced over $500 as the auction is quite unpredictable, and even the chances of winning are low.
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What are the Common Products Available in DealDash?
- TV Auctions like LED and Plasma
- Tablets
- Gift Cards
- Camping and Outdoor
- Tools like drills and saw
- Small Home Appliances
- Fitness
- Toys, Kids & Baby
- Appliances
- Cameras
- Bid packages
What is its Business Model? How does it make money?
DealDash business model is just like any other auction website, and the business model is focused on the idea where people can get what they want at an affordable price. The business model is exciting yet very simple.
It makes money by selling its bids. The more people bid, the more money the company tends to make. Let’s assume that DealDash is auctioning a shirt in which the total cost is $10. Yet the auction price starts from $0 and will go higher and higher as the bid takes.
DealDash will get $ 5 while the winner gets the shirt at $5 along with the total value of the bids.
Also read: 9 Top Clickfunnels Alternative for your Business in 2020
What are the Pros and Cons of DealDash? Does it Provide Free Shipping?
As an exciting place to shop, let’s look at the pros and cons of the DealDash platform given its business model.
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Yes, free shipping is one thing that customers love about DealDash. They provide free shipping for all auctions in the USA. However, the free shipping feature is not available in Hawaii, Alaska, or anywhere outside the USA. This is quite interesting because free shipping is rare in the penny auction world.
What do people think about DealDash? According to people’s review and internet research.
Here are the screenshots; take a look at the honest opinion of people who shop from the DealDash site.
The Bottom Line
Although there are many auctions and great product varieties, there is a cutthroat competition with lots of bidders, and it can be rough sometimes. Overall it has an excellent BBB rating and is also accredited.
With a good reputation in the industry, it is making the efficient auction available for customers. Not only that, the customer’s services with generous refund policies make it an even better choice.
FAQs
1. How much does DealDash cost?
At DealDash, you can expect to buy from as few packs as 60 bids leading to more than 1000 as well. Make sure to participate well.
2. How long do DealDash auctions last?
DealDash auctions will last as far as 20 minutes to an hour. Users can use from 60 to 200 bids. If not, they can even try BIN to buy the item which they otherwise lost in the auction.
3. What is a bid pack?
A bid pack gets you started with bidding quickly. It usually operates on a pay to play model. The bid pack processes enough leverage to take part in the auction.
4. How Should You Bid?
It is effortless; you can buy the bid and use them in the auctions. Each of your bid can increase the auction by one cent.
5. What is the catch with DealDash com?
DealDash is considered one of the largest penny auction website. But according to many customers, it has gotten the name “illegal gambling site” and deceptive site.
