Company:Beezid

From HandWiki
Beezid
TypePrivate
IndustryE-Commerce
FoundedJune 6, 2008 (2008-06-06)
FounderMax Bohbot
DefunctOctober 11, 2016 (2016-10-11)
Headquarters
Montreal , Quebec
,
Canada
Area served
United States , Canada
ProductsOnline Bidding Fee Auction with "Buy It Now" option & Store
Number of employees
50
Websitewww.beezid.com

Beezid was a Canadian online retailer and penny auction website located in Montreal , Quebec.

History

Beezid CEO Max Bohbot had previously worked on developing other E-commerce websites, and decided on the bidding fee auction model after observing its success in the European market. Following nearly a year and a half of development, Beezid launched in October 2009.[1] The company's name is a play on the word "bid," using a form of slang similar to izzle-speak.[1]

On September 30, 2016 Beezid auction site was placed on standby.[2] Beezid confirms the site is not functional on October 11, 2016 on their Facebook page.[3]

Auctions

Beezid's auctions require the purchase of bids to participate. Members purchase bids in "Bid Packs," with the cost per bid ranging from $0.00125 - $0.90.[4][5] Bid packs can be purchased in sizes ranging from 30 to 16,000,000 bids at a cost of $27 to $20,000.[6]

Auctions open with several hours on the timer; each bid placed raises the auction price by a penny, and, in the final seconds, additionally resets the timer to a low value, to allow other members to bid.[5] Placing a bid uses up a bid from the pool that a user had purchased, meaning that the cost of placing a bid is relative to the per bid price of the bid pack that you purchased.[7] When the timer reaches 0, the auction closes and the last member to place a bid wins the item.[8] Since there can only be one winner for each auction, participants can end up losing money while bidding without winning an item.[9]

In October 2012, Beezid added a "Buy It Now" function to their auctions where, should a participant not win an auction, they can choose to pay the retail price for the item and have the bids that they used in the auction returned.[10]

Store

In November 2013, the Beezid Store opened as a retail extension of the penny auction site, offering the same merchandise found in their auctions that could be purchased directly rather than having to be won in a bidding fee auction.[11] The Beezid Store additionally allows the members to sell their auction wins from Beezid directly. Upon winning an item, a user can choose to sell the item instead of claiming it, and other website visitors can then purchase the items in the store.[12]

Critical reception

Beezid has drawn criticism of its business model for requiring the purchase of bids to participate, and for not disclosing the cost of bidding in their advertisements.[5] Only one person can win any given auction, while the website profits from the bids spent by all the losing participants. Even the winner pays the cost in bids needed to win an item over and above the closing auction price.[13]

References

  1. ↑ 1.0 1.1 "Beezid Online Auction: Easy as 1 2 3". Urban Male Magazine. http://www.umm.ca/articles/article.php?article_id=1492. Retrieved 12 February 2015. 
  2. ↑ generator, metatags. "BEEZID ON STANDBY HOLY CRAP" (in en). https://pennyauctionsforum.com/showthread.php?tid=570. 
  3. ↑ "Beezid - Dear Beeziders, We realize that by now you must... | Facebook" (in en). https://www.facebook.com/TheBeezid/posts/10154704092608921. 
  4. ↑ Ellis, Blake (June 24, 2011). "House-bound Lindsay backs Lohan Penny Auction Site". CNN Money. http://money.cnn.com/2011/06/24/pf/lindsay_lohan_beezid_auction/. Retrieved 19 June 2015. 
  5. ↑ 5.0 5.1 5.2 Steele, Chandra. "Can You Really Buy An iPad for $1.00?". https://www.pcmag.com/article2/0,2817,2460600,00.asp. Retrieved 13 April 2015. 
  6. ↑ Worley, Becky. "Hidden Dangers of Penny Auctions". https://news.yahoo.com/blogs/upgrade-your-life/hidden-dangers-penny-auctions-163331290.html. Retrieved 19 June 2015. 
  7. ↑ Worley, Becky. "Hidden Danders of Penny Auctions". Yahoo News. https://news.yahoo.com/blogs/upgrade-your-life/hidden-dangers-penny-auctions-163331290.html. Retrieved 19 June 2015. 
  8. ↑ Zimmerman, Ann. "Penny Auctions Draw Bidders With Bargains, Suspense". https://www.wsj.com/articles/SB10001424053111903392904576512280986981242. Retrieved 13 April 2015. 
  9. ↑ Press, Associated. "Penny Auction Sites Could Cost a Chunk of Change". http://www.foxnews.com/tech/2011/06/24/penny-auction-sites-could-cost-chunk-change/. Retrieved 13 April 2015. 
  10. ↑ "Error: no |title= specified when using {{Cite web}}". http://www.prlog.org/11989294-buy-it-now-added-to-beezidcoms-massive-repertoire-of-features-most-in-its-industry.html. Retrieved 28 May 2015. 
  11. ↑ "Beezid Revolutionizes Online Shopping With New Store". http://www.prnewswire.com/news-releases/beezid-revolutionizes-online-shopping-with-new-store-229681921.html. Retrieved 12 February 2015. 
  12. ↑ Lee, Amanda. "Beezid is No Longer JUST a Penny Auction". http://www.pennyauctionwatch.com/2013/11/beezid-store-allows-users-to-flip-resell-items/. Retrieved 13 April 2015. 
  13. ↑ Grant, Kelli B.. "The Truth About a $3 iPad". http://www.marketwatch.com/story/how-penny-auctions-work-1300313918147. Retrieved 13 April 2015. 




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