Everyone is aware of what an online auction is: an area of electronic commerce that have bids and buyers and sellers and the one who offers the highest prices for the item wins. The principle is very close to the one of customary auctions.

Swoopo is an online auction site that sells high end electronics and other goods at very low prices. For example, plasma and LCD TVs regularly go for under $100 for those of over 40 inches. High end laptops and video recorders also regularly sell for under $100. One will definitely agree that the prices are incredible, however, what's the catch?

If you must know Swoopo's online auction system is different from that of EBay, for example. If on EBay one may bid any amount, so the Swoopo allows bidders to bid only in fixed amounts ($0.15) and then pay $0.75 per bid. That's the catch actually: the site charges people to make a bid. If you read the Swoopo site you will find this information there, fees are not hidden but made public.

When one goes to the Swoopo homepage he is enabled to see the ongoing auctions. As the auction gets down to the final seconds a bid raises the price by $0.15 and adds more time to the clock. Since it only costs a few cents to make a bid, why not take a chance? And that is what people do. Except there are also automated programs that allow bidders to set a limit on how many bids they are willing to make and/or how high they are willing to bid.

Many complaints about the Swoopo read that it is a scam site. Is it? The only thing that such comments appear is that some people get upset with the bidding structure or may not understand it. Bidders have to pay to make a bid, and once the auctions is to the end, the winner receives the item while less successful bidders go home without money and prize. After watching a few auctions and looking at the site, everything looks pretty sure as advertised.

People at Swoopo tend to sell high end items for pennies on the dollar. It is the best advertising they can get. Swoopo has stated they lose money on many of the items they sell, but think of the following... If each bid is charged at 75 cents and there may be up to 600 bids for one item at a time, so who is the loser here? And these penny auctions raise the bid price by one cent instead of fifteen cents thus attracting thousands of bids take place before the final sale.

Swoopo seems to be nothing more than a gambling machine: you pay hoping to win but your chances are so low. And even if you eventually win the score is on the house, because you must have lost tens of dollars before you succeeded on a purchase. If you are wiling to run a risk and get an expensive electronic item for pennies you my as well try Swoopo.

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