Frequently asked questions

In order to properly define the unique characteristics of the 'reverse auction' and why it is one of the most lucrative auction models in the world, it is important to explain the more familiar auction sites you'd typically see on the internet, i.e. eBay, eBid, uBid, Yahoo among others. These types of auctions are categorically referred to as "traditional auctions."

A traditional auction involves a "Seller" who is offering an item for sale while potential buyers compete with each other for the purchase of the item, which in turn causes the price of the item to continually increase in price until no buyer is willing to bid more...thus the auction concludes with the item being awarded to the "Highest Bidder."

The characteristics of a reverse auction are in fact very similar to that of a traditional auction by the fact that it also involves a "Seller" which for our purpose is DubLi.com.

DubLi.com offers an item(s) for sale on the online auction website attracting potential buyers who compete with each other for the purchase of a particular item, just like you'd see in a traditional auction. However, all similarities end here because in a reverse auction the price of an item is actually driven down with each bid placed by potential buyers until a single lowest buyer is identified. At this time the auction concludes and the item is awarded to the "Lowest Bidder."

To quickly summarize the key differences between the two; in a traditional auction, the price for an item is continually driven up from the bids placed by potential buyers, where as in a reverse auction; the price for an item is continually driven down from the bids placed by potential buyers.

The origins of the 'reverse auction' date back to the mid 1990's. The concept was created as a way for companies to bid on available government and private sector contracts. The auction would take place on the internet and potential buyers were invited to openly compete and bid amongst other companies vying for the available contracts; which would of course benefit the recipient by driving down the costs of the project. When bidders reached a threshold and could go no lower for a particular contract, the auction would conclude and the available contracts would be awarded to the companies with the lowest bids.

Prior to the creation of the reverse auction, competing for contracts was more localized and bids were often delivered through the mail as potential buyers had to patiently wait for the outcome of their bid. However, with the advent of the Internet, suddenly a paradigm shift transformed in the way companies and governments could post important projects and accept bidding from potential buyers and contractors from around the world. It is not known who officially coined the phrase 'reverse auction' but it's matured into a multi-billion dollar global industry and one you don't hear about very often. Perhaps it is because it's been used primarily by big companies and governments up to now.

DubLi.com's founder, Michael Hansen, carefully studied and examined the 'reverse auction' model starting in 2003 and concluded there was an even bigger opportunity for growth in the multi-billion dollar consumer market. He envisioned showcasing the best selling, in-demand products and services from the most well known and reputable companies in the world; only those with a household name would qualify. The key to success would be in the ability to drive customers to DubLi.com's auction website. He felt that buyers would be eager to check out the auction and proceed to bid...only if the products and services had instant appeal and credibility to the consumer.

The DubLi concept is simple yet savvy. By providing the consumer with the ability to purchase name brand merchandise at a fraction of the cost, it became an instant hit with shoppers. The auction website is open for business 7 days a week, 24 hours a day, and offers only the top selling genuine name brand items from the most respected manufacturers in the world.

A Credit is DubLi's form of currency that allows a consumer to participate in the reverse auctions. Consumers bid on the Company's online auctions by purchasing "DubLi Credits" either directly on DubLi.com or from DubLi's independent business associates who are members of the DubLi Marketing Network. When you first enter DubLi.com's auction website there are several categories that the buyer can pick and choose from. Perhaps they are in the market for something in the "electronics section" like a new flat screen TV or digital camera; in the "household items" like an espresso machine or a juicer or in general a gift card from some of the top retailers like Wal-Mart and Target and everything in between.

In an Xpress auctions, the product up for auction is displayed with a starting price, which is the lowest available retail price. Each time a consumer makes a bid (which costs him or her one Credit), the Starting Price is decreased by US$0.25 (EUR 0.20) and the reduced price becomes visible to the person making a bid and to no other person. The bidder can choose to purchase the item at the reduced price so shown or can opt to wait in the hopes that others will make bids and drive down the price. The actual purchase price is always less than the Starting Price and is often a substantial discount to the Starting Price. Can you imagine if you spent $0.80 and found a product worth $500 showing the bid at $200 how happy you would be with your purchase. It would be well worth the cost of the "Credit".

In the Unique Bid auction, an auction is scheduled with a definitive start and end time. At any time prior to the auction end time, persons can make bids (one bid for one Credit) on the price at which it would purchase the product. Bids must be made in $0.25 increments. The person who has placed the lowest unique bid (i.e. no other person has bid the same $0.25 incremental amount) is entitled to purchase the product at such bid price. The Unique Bid has hosted many popular auctions recently including The NY Spygame, a Mercedes-Benz, a trip to the Masters Golf Tournament, the new Samsung 3D TV and two Gold Bars.

The DubLi Shopping Mall is an additional shopping concept that allows consumers to do their everyday shopping at the same merchants they are shopping at anyway. With over 1,100 national merchants, consumers can earn up to 30% in cash value rebates at all of their favorite stores and restaurants including Walmart, Home Depot, Applebee's, Bloomingdales and Nike. At DubLi, we want to assist you in all your shopping needs and help you find real value in a fun, simple and entertaining environment.