Short Story: The Truth About DealDash Scam

We all have heard the catchy advertisements offering huge discounts around 90% on various products. And many people around the world thought it in a way that this would be a part of a scam through online medium. It becomes possible with the execution of online auction of various products similar to some giant online marketplace like Amazon where sellers bid different prices for the same product. As an entrepreneur, to run an auction-based business model, you will require to do a lot of market research and also the adherence to legalities otherwise your business model will get labeled as a scam.  So, one such online services namely DealDash which runs on auction-based business models, where it executes the auction of different products that eventually the global customer will buy at a comparatively lower price than the actual price of the product. 

Now in this article, we will provide you the short story on the truth about DealDash scam with the discussion on the following topics.

● What is a penny auction service?

● How does DealDash work?

● Misconception about DealDash scam

But, the question arises that how these online sites will offer the products at lower prices? And if these sites are all scams then how they make more profit and sustain in the global market?

So, in this article, we will take you behind the curtain and explore the truth behind the DealDash scam to properly understand the world of penny auction websites. For this purpose, the first step in the path of truth about DealDash scam will be in the next section of our article.

What is the penny auction service?

Penny auction service is also known as bidding fee auction which involves the participants to pay a non-refundable fee to buy a bid. In this manner, the customers or participants indirectly involved in the entire penny auction services. That simply means that the customers have to pay a non-refundable fee for every incremental bid that they place in the entire process of the auction. In this context, each bid will carry equal weight and helps to marginally increase the price of the item by a small amount, similar to a penny and that will extend the time of auction by few seconds.  So this auction process involves the penny then it gets the name as a penny auction service. The auction will end if no one can place several bids more than the current bid in a predetermined time interval, then the product will get sold according to the last bid price.

DealDash uses this strategy of penny auction services as a business model which lets the global customers place a bid for an exhibited product and offers the same product to them at a price they bid for on a condition that they become the final bidder. It simply means that no further bids get placed on the produce after the bid for the customer.

How does DealDash work?

DealDash works similarly as the penny auction website that makes most of the money by selling the bids. The bids get sold into variable sizes of packs to the customers as well as bidders so that when they bid more for a product, the company makes a large amount of profit. DealDash also receives the final price at which the product gets sold to the customers. 

To understand properly the working of DealDash which takes place in four steps as follows.

● When the bidder will place their bid each bid raises the price by $0.01.

● Then the auction clock restarts after a few seconds every time someone places a bid.

● If no bids are available from the customers before the clock runs out of time, then the last bidder wins.

● Before the customer takes part in an auction, then they need to buy bids, because this small fee will make massive savings possible on the final product.

To understand the entire working process of DealDash, let us take an example where the gaming console product is at an exhibition on the business website of DealDash with an auction price of $9.42. That simply means that only 942 bids get placed in the auction by all the participating bidders, and with each bid, the price of the auction will increase by  $0.01.  

In this manner, the DealDash will generate total revenue of 942 * cost of bids + the final auction price. Bids are usually available for less than $0.20 for each bidding process. Now, the total revenue that DealDash will generate for this particular product is as per the calculations. 942 bids * $0.20 per bid =  $188.40 + the final price of $9.42 from the auction that comes total result of the sum of $188.40 + $9.42 = $197.42 of revenue. And the winner will pay the final auction price of $9.42 and used 33 bids that mean (33 * $0.20 = $6.6), so the total cost for the auction winner is $16.02. And DealDash will offer free shipping to the customers.

● Misconception about DealDash Scam 

Most people criticize the service of DealDash because they are not releasing the bidding amount to the customers or bidders who fail to win the auction process for the product and treat as one type of online scam, so they have given the name DealDash scam for the entire auction process. But, this is not true because of the two advanced facilities DealDash provides to its customers are as below.

● Buy it now facility - Through this advanced facility, DealDash allows the not so fortunate bidder to buy the product with its original selling price at the time of product exhibition into the website.

● Money-back guarantee program - In this program, DealDash will offer the latest facility to bidders that they will receive back their bidding amount for the execution of the penny auction process of products.

So, with the above-mentioned two advanced facilities, we can say that DealDash is not a scam.  Now, we will sum up our entire discussion with the conclusion that with the help of this short story, the truth about DealDash scam gets revealed.