DealDash

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DealDash
TypePrivate
IndustryE-Commerce
FoundedFebruary 22, 2009 (2009-02-22)
Founder(s)William Wolfram
HeadquartersManhattan, New York City, United States & Finland
Area servedUnited States
ProductsOnline Bidding Fee Auction with "Buy It Now" option
Employees65
WebsiteOfficial website
 
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DealDash
TypePrivate
IndustryE-Commerce
FoundedFebruary 22, 2009 (2009-02-22)
Founder(s)William Wolfram
HeadquartersManhattan, New York City, United States & Finland
Area servedUnited States
ProductsOnline Bidding Fee Auction with "Buy It Now" option
Employees65
WebsiteOfficial website

DealDash is an e-commerce company based out of New York City, New York. The company was founded in February 2009 and operates the longest running bidding fee auction website in the United States. Having more than 2 Million registered users makes the company one of the largest providers of pay-to-participate auctions in the world.[1][2] In February 2012, DealDash obtained the domain name for Swoopo.com, previously occupied by a European based bidding fee auction website, which had recently failed.

History[edit]

DealDash launched in the United States in February 2009 and has stayed in business longer than any other similar auction site and become one of the largest companies to operate in its field. Its unique selling proposition is that if a customer loses an auction they can purchase the item they were bidding at for a regular retail price and get a full refund on the bids placed in the auction, thus eliminating the risk that usually exists in pay-to-participate auctions.[1][2][3][4]

According to AdWeek and research from SocialBakers, for research covering the period May 1 until May 13, 2013, DealDash was the most talked about brand in the world on Facebook's "People Talking About This" metric.[5]

Mechanics[edit]

In order to participate, registered bidders must first buy Bids before entering into an auction. Bids cost 60¢ each and are sold in lots (Bid Packs) varying in amounts from 60 to 1000 bids. Standard auctions begin with an opening price of $0.00 and every time someone bids the price increases by $0.01. The auction clock restarts from a maximum of 10 seconds every time a bid is placed. If no new bids are placed before the clock runs out, the last and highest bidder is declared the winner of the auction and owns the rights to purchase the auction item at the final sales price within 14 days of the auction ending.[6][7]

Bidders who are unsuccessful at winning an auction can choose to purchase the same auction item at retail price (“Buy it Now”) within 7 days of the auction ending and get back all the bids used in the auction for free. The price offered less any "discount" for the unsuccessful bids need not be competitive with the same item purchased elsewhere. Any unsuccessful bidder not using the option, loses the value of the bids placed. A company spokesperson says DealDash generates significant business from bidders who choose to “Buy it Now”, with hundreds of orders processed daily.[8]

Bids can be placed in two ways. Bidders may choose to place single bids, which requires the person to be present on the site and manually click the bid button. Alternatively, Bidders can place bids through an automatic bidding tool called the "BidBuddy". Bidders can add the number of bids they want to place and click “Book a BidBuddy” from the auction page. Once a BidBuddy is active, it will automatically bid in the final seconds of the auction in an attempt to keep the bidder as the highest bidder and as long as the bidder has bids left in their BidBuddy. Bidders can cancel or add bids to the BidBuddy at anytime. If an auction is won using the BidBuddy, the unused remaining bids are returned to the bidders account.[6]

While DealDash promotes being able to buy high-priced items, such as electronics, for far less than their retail value, the company discloses in its terms of service that site users are likely to spend more money by bidding on auctions than they receive in merchandise. DealDash claims the "entertainment value" of its service justifies bidders paying a premium for products.[9]

Penny auction sites like DealDash have often been criticized for failing to disclose or include the cost of bids in what customers actually spend in total to win a product. Often, users can spend substantial sums of money without winning anything.[10]

Finances and funding[edit]

According to a company announcement, the company was profitable in 2011 and closed a $1 million investment from venture capital firms and angel investors in the last days of December 2011.[11]

See also[edit]

References[edit]

  1. ^ a b "Deal Dash". CrunchBase. Retrieved August 21, 2012. 
  2. ^ a b Laila Escartín-Sorjonen (June 14, 2012). "DealDash - Turning Shopping Into a Game". The Huffington Post. Retrieved August 21, 2012. 
  3. ^ "Dealdash Reviews – Is Dealdash.com Legit or a Scam?". Legit Auctions. Retrieved August 21, 2012. 
  4. ^ Lee, Amanda (April 2, 2010). "Bidray is Now DealDash.com". Penny Auction Watch. Retrieved August 21, 2012. 
  5. ^ "Obscure Direct Response Brands Dominate Facebook Chatter". Adweek. Retrieved May 24, 2013. 
  6. ^ a b "Deal Dash - Frequently Asked Questions". DealDash. Retrieved August 21, 2012. 
  7. ^ Anderson, Greg (October 24, 2011). "DealDash Sees Explosion Of Growth". ArcticStartup. Retrieved August 21, 2012. 
  8. ^ Vilpponen, Antti (May 5, 2011). "Interview With William Wolfram, CEO of DealDash". Arctic Start Up. Retrieved August 21, 2012. 
  9. ^ "DealDash terms of use". Retrieved December 9, 2013. 
  10. ^ McCarthy, John (February 6, 2011). "Penny auctions promise savings, overlook downsides". USAToday. Retrieved December 7, 2013. 
  11. ^ Vilpponen, Antti (January 11, 2012). "DealDash Recruiting Talent With Strong Growth And $1M Investment". Arctic Start Up. Retrieved August 21, 2012. 

External links[edit]