As stated on their site, Bilibid.com is a penny auction site wherein users can bid for a specific item using bid points. Just like the usual bidding process, whoever bids the highest price for the item, wins the auction.
Instead of bidding for free though and cashing out only when you win a bid, these auction sites require you to pay for each bid. It means that you need to buy bids so you can participate in an auction.
A bidding fee auction, also called a penny auction, is a type of all-pay auction in which participants must pay a non-refundable fee to place a small incremental bid. When time expires, the last participant to have placed a bid wins the item and also pays the final bid price, which is purportedly significantly lower than the retail price of the item. The auctioneer makes money in two ways: the fees for each bid and the payment for the winning bid. -Wikipedia
I decided to try out this site when their Facebook page announced on my stream that they have Krispy Kreme GC bidding ending in 20mins. Just to see what the hype was all about (and hey it’s KK!) after hearing about this from the Cebu Bloggers Society members, I decided to give it a try.
Buying Bid Packs
What I did since I already had an account was to purchase 20 bids worth of pack for Php 300. That’s about Php15 per bid. A bit expensive for my taste. The good thing about it is that they made it easy for you to purchase bids. You can get your bid packs over LoadCentral, CashSense and Paypal. I got mine over Paypal of course.
When I got my credits, I had to redeem. It’s actually just a sort of “top up” page where you enter the Card Number and the PIN that you just purchased.
Bidding on an Item
After redeeming, I navigated to the Krispy Kreme GC bid page that I saw. There are other bid pages but some still have hours to go and some are already hot at the eight-seconds countdown so I settled at the KK GC that I came there for.
I started bidding at the last-eight-seconds countdown timer. This is said to be the most crucial part of the auction. This is the time when the bid wars begin. The more bidders, the longer this would take. And in the case of the GC card, it reached about Php 4.00 before someone won the bid.
Bidder Point of View
In the point of view of a bidder, you might be able to say that it was really good way to earn items like this at a very low price. Imagine buying a GC with the market value of Php 500 for only Php 3.82. It’s that cheap!
But when you try and put yourself on the other side of the table, you would realize that penny auction sites earn way, WAY too much in the process. If you are planning on building a penny auction site as a business, it could be very, VERY profitable.
Bidding Site Operator Point of View – The Real Winner
Take a look at this screenshot below where the bidding was already really tight. You can see that nine bidders were waiting to get their hands on the GC by trying to out bid the others. Every time someone bids at the last eight seconds, the timer gets reset to back to 8 seconds. Oh my.
At this point, the price was already at Php 3.82. It means 382 bids right? Multiply it by the amount of each bid (at Php 15 each) and you get Php 5730. Five thousand pesos plus for a five hundred peso gift certificate! Guess who’s the real winner?
And yes, that does not include the final payment of the winning bidder and the of course, the winner needs to pay for shipping.
TLDR; Penny auction sites can be a real money maker.
Is it a legitimate bidding site? Yes. It has been recommended to our blogging group and so far I have not seen complaints. So yes, you are very much welcome to visit the site and bid.
I still have 25 bids left but I want to hit myself for even purchasing Php 300 package. I know I will never win at this based on the circumstances that I need more than 25 bids to win a gift certificate. Maybe it requires skills and a whole lot of luck but it’s hard to join up when you are not under control of the situation.
Would you use penny auction sites?