Wellbid.com predicts a bright future for Penny auction sites.
September 14, 2010
Wellbid.com (http://www.wellbid.com), an online auction site that currently operates in the UK, France, Poland and Hungary, has announced plans to continue expanding internationally as it foresees a bright future for auctions.
Penny auction sites, a relatively new development in the e-commerce market, use an auction system that allows users to purchase high-value items at prices well below retail prices. Most of Wellbid.com customers are looking for great deals on high end products such as laptops, televisions, cameras, iPods and phones. Penny auctions are meant to be fun, competitive, and entertaining, which is why their users prefer traditional online auction entertainment purchases.
For years, the eBay model, in which users raise the prices of items by declaring what they are willing to pay, has dominated online auctions. What was lacking in this model was the pleasure of getting a good deal on expensive goods. For its part, Wellbid.com adds another dimension by allowing bidders to interact with each other. The site allows participants to compete against each other during the auction process, adding a level of excitement unmatched by any other type of online auction or shopping site.
“Wellbid.com allows users to bid and win items, as well as connect with other users,” said Martha Paluch, head of customer retention at Wellbid.com. “We find that auction winners are amazed at the great deals they get and the fun they have during the bidding process. We are working hard to improve the site experience for all Wellbid.com users.
While old critics of penny auction systems accused the early pioneers of putting profits before users by making promises that could not be kept, the industry has evolved rapidly and continues to mature. Currently, the most popular penny auction sites, including Wellbid.com, strive to educate users on the auction model and provide excellent customer service with a focus on basic services and by developing new useful features.
“An auction site like Wellbid.com is a hybrid between e-commerce and entertainment, creating an entirely new segment within the e-commerce industry,” said Andrzej Belczak, president of Welmory Limited. “Because more and more Internet users are spending more and more in these areas, Wellbid.com has experienced significant growth and the projections are very positive.”
Wellbid.com is owned by Welmory Limited, a Cyprus registered holding company. In 2009, the company received the first round of risk financing with a valuation of 4.5 million euros.
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