Swoopo.com does not work more than a week
The ancestor of the “paid online auctions” genre is experiencing hard times: the site has been closed since March 17, and there were rumors that the founders of the project initiated a bankruptcy procedure. Since its creation in 2005, the Swoopo.com project has been a topic of controversy. What is it - the original business idea or disguised fraud? Is it possible to mix shopping with gambling?
The idea of Swoopo is that the user makes paid bets on price increases. At a rate of $ 1, he raises the price of the product by 15 cents. As a result, it turns out that the goods are sold at ridiculous prices: for example, the iPad 3G can be bought for $ 250.05, but the players paid $ 1667 for participation (250.05 / 0.15 * 1).
To participate in the auctions, it was necessary to register on the site and buy one of the “packages” of paid rates for $ 20, 50, 100, 200 or 500. When buying large discount packages were not.
In the early years of its existence, this project was quite successful. Founded in Germany in 2005 under the name Telebid, the business quickly gained momentum. In 2007, they opened a branch in the UK , and in 2008 - in Spain . In 2007, the company announced revenues of 11 million euros and planned 20 million euros in 2008. The business also planned expansion into the American market: 50,000 customers in 2008 and 800,000 in the following. As you can see, these ambitious plans did not come true.
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Of course, the profit margin of such an “online auction” must be very large. On each product, he can earn two to three times his cost, but there is an obvious problem with customer loyalty. Anyone who has spent a couple hundred dollars to participate in auctions, but never won anything, feels deceived and considers this site to be fraudulent. Unlike eBay, such a project will never have a large, loyal audience.
On March 17, an announcement appeared on the Swoopo.com main page that the service was “temporarily unavailable due to technical problems,” and soon they plan to return to work, but temporary problems have been going on for more than a week. At the same time, unconfirmed information appeared that the founder of this project, the German company Shopping Entertainment AG, also filed in Munich court documents for the protection against creditors in connection with bankruptcy. Already allegedly appointed liquidator for the sale of assets.
According to experts, Swoopo traffic has fallen sharply after the appearance of numerous clones, including BigDeal.com and BidCactus .
On the BigDeal.com website, the price rises in steps of 1 cent, which gives the organizers an order of magnitude more profit and makes auctions more interesting for the participants.
As you can see, the business model did not discredit itself at all, and even in RuNet there are several projects that successfully use the same scheme at the junction of e-commerce and casinos.
The idea of Swoopo is that the user makes paid bets on price increases. At a rate of $ 1, he raises the price of the product by 15 cents. As a result, it turns out that the goods are sold at ridiculous prices: for example, the iPad 3G can be bought for $ 250.05, but the players paid $ 1667 for participation (250.05 / 0.15 * 1).
To participate in the auctions, it was necessary to register on the site and buy one of the “packages” of paid rates for $ 20, 50, 100, 200 or 500. When buying large discount packages were not.
In the early years of its existence, this project was quite successful. Founded in Germany in 2005 under the name Telebid, the business quickly gained momentum. In 2007, they opened a branch in the UK , and in 2008 - in Spain . In 2007, the company announced revenues of 11 million euros and planned 20 million euros in 2008. The business also planned expansion into the American market: 50,000 customers in 2008 and 800,000 in the following. As you can see, these ambitious plans did not come true.
')
Of course, the profit margin of such an “online auction” must be very large. On each product, he can earn two to three times his cost, but there is an obvious problem with customer loyalty. Anyone who has spent a couple hundred dollars to participate in auctions, but never won anything, feels deceived and considers this site to be fraudulent. Unlike eBay, such a project will never have a large, loyal audience.
On March 17, an announcement appeared on the Swoopo.com main page that the service was “temporarily unavailable due to technical problems,” and soon they plan to return to work, but temporary problems have been going on for more than a week. At the same time, unconfirmed information appeared that the founder of this project, the German company Shopping Entertainment AG, also filed in Munich court documents for the protection against creditors in connection with bankruptcy. Already allegedly appointed liquidator for the sale of assets.
According to experts, Swoopo traffic has fallen sharply after the appearance of numerous clones, including BigDeal.com and BidCactus .
On the BigDeal.com website, the price rises in steps of 1 cent, which gives the organizers an order of magnitude more profit and makes auctions more interesting for the participants.
As you can see, the business model did not discredit itself at all, and even in RuNet there are several projects that successfully use the same scheme at the junction of e-commerce and casinos.
Source: https://habr.com/ru/post/116342/
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