Swoopo: scam or not a scam? Is the online auction site Swoopo a scam or is it legit? There seems to be a lot of controversy over Swoopo and it's authenticity among the bidders who are looking to buy items at extremely low prices. Items such as Sony cameras, HP computers, LG refigerators are often advertised as "90% off" which is the lure that brings bidders to the auction site where bidding begins at pennies for the dollar. Bidders expect to see a site such as Ebay but are instead surprised to learn that the rules of Swoopo are quite different.
Originally launched in Germany in 2005 as an auction site named Telebid, they moved into the United States in 2008 and changed their name to Swoopo. Copying the Ebay online auction site, Swoopo starts auctions off for a penny and then raises the price once bids are made. The main difference between the two auction sites is that Swoopo charges the bidder 60 cents each time a bid is made plus the price of the item is increased and the time clock is increased as to when the auction will end. Bids can be purchased in bid packs ranging from 30 and on up to 700.
Swoopo scam became the term associated with the auction site when bidders realized that every bid placed was costing them money and at the end of the auction they were out of bid packs and money. In addition if the bidder ran out of bid packs they were unable to purchase more packs in time for the current auction so they would be out of however much money they had bid up the item. Swoopo was collecting all of the bid money in fees. Each item goes up one penny per bid and Swoopo collects 60 cents. For example, an item that goes up to $40.00 will get 4,000 bids and at 60 cents per bid, Swoopo will collect $2,400 in fees. Swoopo executives do realize that the difficult part of the auction for bidders can be bidding on items that someone else wins but insist that Swoopo is not a scam.
Bidders who are familiar with the auction site know that they must come into the auction with a strategy. It is important to have an idea as to when an auction is about to end so that time and money are spent wisely. If a bidder is not serious about a particular item than it is a waste of time and money to place a bid on that item. The subject of whether Swoopo is actually a scam is a very gray area in the legal system. Swoopo is not a gambling site since it is actually an auction site and not a game of chance but paying for bids is not actually legal in most states but that is up to whoever seems to be interpreting the law.