A MacBook sells for $12.05 on Quibids.com, an Oklahoma-based Internet auction website.

New internet auction websites offer deals for pennies

Internet auction sites like eBay have been popular for students who want to save money on everything from designer clothing to textbooks. A new type of auction site has emerged and most claim that bidders can save up to 90% off retail prices. The catch? Unlike eBay, bidders pay each time they place a bid with no guarantee of a win.

Quibids.com, based in Oklahoma City, launched in July 2009. The site specializes in selling electronics and gift cards. Popular items like Apple MacBooks and Kindles have sold for less than $30. Each bid costs 60 cents, and site users can buy packages that range in price from $27 for 45 bids to $180 for 300 bids. Bids are deducted from the bid account every time a user bids on an auction.

Jill Farrand, director of public relations for Quibids, said the company can afford to sell high-ticket items for low prices since the bidding revenue generates enough money to cover Quibid’s cost to buy a product. All items are brand-new and come with the manufacturer’s warranty.

Users who don’t win an item can redeem the value of their bids on another product by using the “Buy It Now” option.

“You won't lose your money and will be able to purchase that item at retail, minus the cost of bids you already used,” Farrand said.

Consumers should use common sense when using online bidding sites, said Shannon Tate, a deposit operations representative with First Fidelity Bank. Tate is responsible for investigating debit card fraud. She has noticed an increase in the number of claims regarding online shopping.

“You should know the site you’re working with and know that it’s genuine. Too many people haphazardly go out there and willingly hand over their information. The sites aren’t the danger. It’s the consumer themselves. We’ve become too trusting and willing to put our finances out there for everyone. Be in control of your own destiny. Don’t assume that everything out there is legitimate. Do your homework and check everything out before you hand over your bank information,” Tate said.