OzzieBids Not a Bargain
Earlier this morning I received an email advertising ozziebids, which claims to be “a comprehensive Australian online auction website offering an alternate method of online shopping”. It lists brand new products on its website and its members can start bidding on these items.
While thinking, oh yeah, another eBay wannabe, I actually went and checked out the site. Then I saw items like a PlayStation Portable which usually retails for around AUD$400, is waiting for bidding at maximum bid of $50! That is right — the yummy PSP will sell for no more than 50 dollars. There are other “bargains” like a 42inch LG plasma TV with maximum bid of $500. How does it work? Until I read about it…
In a “normal auction”, usually it is the one who is willing to pay the most wins. However in ozziebids, the successful bidder needs to be the one offering the highest unique bid, i.e. no on else is putting in the same amount before the closing time. Being someone willing to pay the most does not guarantee you a sale, but you need to choose a number that no one else would have chosen, and has to be bigger than every other unique numbers picked by other bidders.
Moreover, there is an “admin fee” of between $10-$25 that is payable whenever you are making a bid. It is not only charged for successful bidders, but everyone who puts in a bid.
In another word, everyone puts in a fixed amount of “entry fee”, and the one who guessed the right number wins the game. He or she can then claim his/her prize by paying another 1/10 of the cost of the unit.
That sounds like gambling in my dictionary. Yeah — legalised on-line gambling, operated from Perth, hosted in Brisbane, masqueraded itself as an “online shopping site”.
To say that you can find bargain in this kind of operation is like saying you can earn good money in lottery. True for some, but totally not the case for most other participants. Finding a real bargain in ozziebids? Only for the lucky few.
Update: There seems to be quite a number of sites that use the similar strategy — winning on the maximum unique bid. Again, I’ll say none of them offers real bargain. You might buy things cheaply there, but so can you “buy” a dream home at Gold Coast for $10 if you win the lottery. Here are a list of similar sites
- Aussie Fuel Auction — bidding on fuel cards
- Bid and Win
- SMS2BID — bidding with SMS messages.
So how do they CONSTANTLY get people to particpate, surely people would think “hey Ive spent $5 a time to bid, its now up to $50, Im not bidding anymore!”. Yet they seem to have a steady flow of particpants will ing to constantly play?
Is it legal in WA????
They have certainly been operating and advertising. I think they are “legal” as they have detailed how it works, so consumers are held responsible themselves. But still — it smells fishy to me.
On the other hand, Australia is probably one of the biggest “gambling country”, where people are willing to buy lotto tickets, play poker machines, watch horse racings, and play dodgy on-line auctions. Not surprising.
As adults we are responsible for our own choices and actions. If you view ozziebids in a realistic way then there should,nt be a problem. Compare it to buying a raffle ticket, you get a 1 in 120 chance of buying a product for 10% of retail value, if this is a product you already intended to buy then the opportunity to buy it at 90% off is very appealing. The admin fee (price you pay to have a bid) actually starts at $2 on some items and is often $5. Therefore if you spend $5 bidding on a product you were already buying then you have’nt lost out too much. This website is not for the faint hearted or poorly disciplined. If you dont have it in you to restrict yourself to 1 bid on something you were already buying then it would be best to stay away.
Kerrie,
I agree that as an adult, we are responsile for our own choices and actions, especially when all facts are present. When they bid on OzzieBids, they need to acknowledge that the chance of winning is not sorely determined by whoever is winning to pay the most, and they need to accept the fact that it is possible they will loose their admin fee.
The raffle ticket analogy is good, however, whoever paying 10% of price for a raffle ticket does not think that he/she is paying for the actual product, but for the chance of winning the product. The admin fee in OzzieBids is also the same — people are buying the chance that they can pay for the product at a lower price.
At the end, it is gambling to me, and I feel it has twisted the meaning of “auction” and “bargain”, which both you have used on your website.
So that being so “can you contribute a variation or better proposition/s using one of the Auction methodologies?”..
hi i think this new concept is good a long as you understand how it works on ebay you could get an even better bargin if everyone waited till the last five mins o so then bid the price would be much smaller rather bidding each other out this only raises the end price
i’m glad i did a search on ozziebids before doing anything silly. i was contemplating bidding on an item but after reading the reports, i won’t be.
Thanks
I guess it comes down to a matter of understanding the concept before bidding. All of the information is provided for you.
I have actually placed several bids on Ozziebids - an auction site???? A gambling site
oh yeah!!!!!without a doubt - how this passes the law of complying with ‘auction’is
questionable. After you place a bid the site confirms whether you are the highest
unique bidder at that point, if you find that you are not, the temptation to place
another bid is very strong….and also very COSTLY…for the unlucky 99%, no bargain
on Ozziebids.
My take on the site is that it provides more chances that any lottery.
Paying $5 for an entry seems chicken feed considering my calcs say you have 1 in 1000
chances of winning compared to TATTS, TAB, On Course Racing etc etc at 1 in MILLIONS.
local Girl Guides lotteries would even be at say 1 chance in 200,000!
Seems great bargain whichever way you look at it!
SMS2BID have an auctioneers license. If you take your time and read the auction sales act, you will see that unique auctions fall under the definition of an auction. My recommendation is do not use one of these sites that do not have such a license.
Im not sure if you are aware, but these licenses arnt easy to come by, and each application is submitted to the court and is decided over by a magistrate.
Like any online experience, go with reputable sites and companies.
If you dont like the idea of the site, then dont use it, its really that simple.
Sounds like a modified version of a Dutch auction
I agree with Sam
(If you dont like the idea of the site, then dont use it, its really that simple. )
But with peter’s comment he is actually saying that is gambling and that is all us
Australians need more places to loose your money.
Regards
fin212
Common Peter - the only way you win is to have shares in the company. Your stats are a little way off. One in 200,000 for a local girl guide lottery - if they sold 2000 tickets in their raffle they would be over the moon.
You coveniently ignore the payout. $5 at 100:1 is no deal if the payout is $50 and that’s what you save with some of these items. vs $5 at 1000:1 for a 1000 payout.
But tahst how thse sites work, they promote the facts they wannt and ignore those that they don’t. And for the unaware they become the sucker. The only true stats these sites work on, is that one is born every day!!!
But hang in there Peter when the stock goes public, the wins will be the best. This is your “ticket to freedom”..
Here is another one, and it operates based on “lowest unique bid wins” motto instead.
I agree 100%, these sites are lottery.
http://probargainhunter.com/2007/04/10/dissecting-bassabids-online-auctions/
Hi
I was in fact today going to direct debit $100.00 to start bidding on Ozziebids but I just happened along to the site of disgruntled bidders and have now changed my mind.
Thank you for making me aware!!
I will now put my $100.00 into our savings account or better still in our Superannuation account.
Thanks Ozziebids but NO THANKS!!!!
Chezablye
This type of online auction certainly is legal throughout Australia.
I have looked into it and spoken with Fair Trading about licenses etc.
Ozziebids themselves have a great set up with all the info necessary to make a judgement of wheather you desire to participate or not.
As far as, will i have a chance at winning or not, is no less or greater, than entering a meat raffle, chocolate wheet, lottery or guessing competion. In fact, as the number of bids required is quite small, you are far more likely to win the item offered, than if you bought a lottery ticket, Lotto entry or scratchy.
When you look at the markup on items you are buying in the stores you regularly visit, online auction sites are great value. As far as being able to win just because you have enough money to make the highest bid is poor, at least on sites like Ozziebids - everyone is equal! Happy hunting.
No one said it was illegal, so why the comment? As one of the stooges above says its been passed by a magistrate - appointed by our State government. The state government makes so much out of gambling of course it accepts this.
And then there is this rubbish about only those with enough money to bid…. In this one you have to PAY to bid - so how is THAT fair… oh yes conveniently forgotten about in the fairness argument.
As another stooge above said - dont like it - dont bet!! - so likewise if you don’t like the comments here - don’t come here and pretend its a bargain!! - its betting.
I have actually won on ozziebids but unfortunately are yet to have anything delivered. There fine print states 10 days and I have now been waiting 22 days, which seems a long time by courier. I have emailed them a couple of times and finally got a response to state that it would be sent on Tuesday but it still has not shown up.
I would like to hear from anyone who did receive there item they won, as I’m at the stage now of thinking its a scam and are hoping I’ll be able to get my money back through paypal.
Gambling??? Come off it! It is FAR from gambling! I have won 5 items from Ozzie Bids! One of them a PS2 for $1.91!!!!! And I have it! So yeah full on, it is gambling. It is just a good place and a darn good idea for people like me who cant afford all these luxuries of life, but you can $14.99 per month to bid on most things for free, so how can you call that gambling? It is a fantastic site, and unfortunately the site is not going at the moment, what has happened I dont know, but I am still waiting on one item I paid for, but for some reason something has gone wrong. Dee, I see you have not received your things, I really dont know what is going on, but something has happened, but I am just keeping an eye on the page to see if it comes back up, but I have got 4 of my 5 things I won, so believe me it isnt a scam.
Amanda
Sure and my uncle has three heads - believe me. Internet words are cheap no wonder its where all the new age scams are found, unfortunately this will finally lead to internet regulation.
That said, when you pay to bid, and the most unique bid “WINS” then its a gamble.
Dictionary definition of gamble
An act or undertaking of uncertain outcome; a risk.
and this is an uncertain outcome……