Swoopo raises $10 mln from August Capital

Online auction site allows consumers to get products at deep discountsSwoopo, an online auction marketplace that helps consumers buy products at deep discounts, on Thursday announced it's raised a $10 million round of financing from August Capital, joining Wellington Partners, which invested in late 2006.  The idea behind Swoopo, which takes inventory of the goods it sells, is to start the bidding price very low. For each bid, a person has to pay 75 cents. When a person is bidding for an iPod at $5.00, 75 cents isn't much. Swoopo often sells products below retail. But as long a product sells for more than 20% of the retail price, Swoopo can break even. This is because the bidding revenue can cover the remainder of the cost.  Recently, Gunner Piening, CEO ... [http://vator.tv/n/746 read more]

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[iparxo]

just checked the canadian site people are so fucking stupid

current live auction id#325498 for i phone current auction amount is $103.60 the increaments are at 1 cents per bid cost is 0.65 per bid

DO THE MATH PEOPLE

$103.60 div by 0.01 =10360 total bids so far on the auction

Now take 10360 bids multply by 0.65 cents per cost of each bid TOTAL IS$6734

This is how much swoopo has made so far and the auction is not over yet on a $700-800 i phone but you can get it free for 4 year contract

[iparxo]

this is all bull shit that he says

maybe lost money on this one byt they make 3 times as much on big items like tvs ect

[21carmelita]

Check out this new site penny auction world dot ning dot com

[V8Countach]

Sounds like just another sneaky gambling site where most users lose their ass. No thanks...I prefer REAL shopping.

[samljer]

Naw its the bids that get ppl

60 cents a bid, auctions go up sometimes as low as just 2 cents

at even $1 thats 50 bids....

Losers still have to pay that

[DYLANSTORM1]

o ya and the bids r like .75 or .60

[DYLANSTORM1]

So that item is $22.80 and + shipping so that is $35.70. So that person did not win it for $17.10. That is where they get u.

[hitssquad]

From the description: " But as long a product sells for more than 20% of the retail price, Swoopo can break even."

Maybe that was a typo. "Retail" should be "wholesale"?