DealDash is a penny auction site, where buyers bid on overstock items with the aim of getting a huge bargain.
DealDash is probably not a scam but make sure you understand the costs!
DealDash will do what it says on the tin. This is not a scam because as far as I can see they deliver on what they offer: if you win an auction you will receive your item. Bidding starts at ridiculously low prices and all bidding increments are $0.01 only. Sounds like a great way to snap up a bargain? Well, YES and NO.
The catch is in the actual costs of the bidding, which is well documented on the website so there is no scamming involved here. If you are going to use this, make sure you read ‘how it works’ section on the website. Here is my brief review of the workings:
How does the DealDash bidding system work?
This not your typical Ebay style bidding website. The main differences are:
- Each bid will cost you only $0.01
- There is an auction clock which restarts from 10 seconds every time someone bids
- Bidding fee of $0.60 every time you place a bid
- If you do not win the auction, you will STILL pay your bidding fees!
That last point is crucial. This is the catch. Remember that this is penny bidding. If the auction you are trying ti win is a popular one, you could easily bid 10, 20, 30 even 100+ times. So if you star bidding o a low cost item starting at $1.00. You bid 20 times, which means you were outbid 19 times, so the new price is now $1.39 and you win the auction. Still sounds like a bargain right? But remember to take into account the bidding fees.
You win the auction:
Final bid $1.39
plus bidding fees 20 x $0.60 = $12.00
Total Cost = 13.39
If you lost the auction:
Bidding fees of $12.00 and you walk away with nothing!
The exception: Buy it Now
There is also a “Buy it Now” option. If you opt for that, all bids placed in that auction are credited to your bid balance, which can be used in a new auction without buying more bids.
The problems with DealDash
- Pressure : The short time on the timers leave little time for buyers to think
- Risk: Once you start bidding you are always at risk of losing the auction and all your bidding fees
- When to stop: The penny increments on the bidding will make it hard to decide when to stop – it is easy to think you could win it with one more bid
- Tracking your costs: You really need to stay on top off your bidding and keep track of your bidding fees and check if you are still happy with the real cost of you purchase
- It is a gamble: You have no idea when the other bidders will stop. No-one will want to loose their bidding fees, which will motivate all the competing bidders to keep on bidding. In normal auction sites the bidders will stop when the auction price approaches the retail price of the item
- Popularity: The more popular the sites becomes, the less bargains will be available and more bidders will loose out
- Misleading ads: Their marketing campaigns are misleading by not explaining the bidding fees. This is a major difference from sites like Ebay and the majority of viewers will be under the impression that DealDash is just another auction site like Ebay
Conclusion: Is DealDash really worth it?
From my point of view, I would not recommend this. If you like gambling, then you probably understand the risk and this might be your thing. I suspect most buyers come to the site looking for a good bargain though, and are not likely to be willing to take on the risky bidding fees. If you decide to give this a go, please make sure you fully understand the workings of the bidding costs.
Is it a scam or not? From the point of explaining their terms on the website, I would say no. But I am not sure if it is ethical to charge bidders simply for the ‘service’ of placing a bid…
What do you think?
Have you tried DealDash before?
Any good or bad experiences?
Any thoughts, questions or comments about my review?
Please let me know in the comments below