DubLi Online Reverse Auctions

Sunday, March 29th, 2009 at 5:40 pm

You may have heard of reverse auctions, which are offered by online sites such as DubLi.com, and wondered how these sites actually make any money. Reverse auctions are like traditional auctions but instead of the price going up with each bid it goes down.

It is clear how this would be beneficial to the consumer, but it may not be clear how a company could sustain this business model while remaining profitable. The fact is that thousands of people are taking advantage of this shopping opportunity and online auction sites are able to profit thanks to a unique business model and sales structure. Watch this short 55 second video clip about DubLi .

When you enter a web site such as DubLi.com to utilize the reverse auction, you will see numerous different products that range from electronics to house wares to designer fashions.

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Each item for sale will have a start price as well as a hidden current price, and the only way to view the current price is to use a "credit" that can be purchased from the site or from DubLi Independent Distributors. Every time, when someone views the price of a product in the Xpress reverse auction, 25 cents is deducted from the current price of the item, and then customer can decide whether that price is low enough to make an immediate purchase or not. If not they can come back later to see if the price has dropped further and hope that it is still available at that time.

When people use their credits on DubLi.com they drive down the price of the items for sale each time, but they are still contributing to the profitability of this reverse auction model because they have to purchase credits to shop.

On DubLi.com the cost of each credit is 80 cents and is so minimal that it doesn’t really affect the shopper much, but they do add up over time so you need to consider the cost of your credits in the overall price of the "yard-sale" prices that you can get. It is a win-win situation for buyers and sellers (as well as DubLi Network Business Associates).

The DubLi.com auctions continue to thrive because they offer the best quality and hottest selling genuine merchandise and the business model was designed to continue attracting new customers through word of mouth advertising.

If you would like to know more about the three different reverse auction formats offered either visit the site at DubLi.com or watch this short video below: