You might have come across an advert of Kobobid Penny Auction and you are wondering if you should join and start bidding for items. Maybe you are even doubting and thinking if this Kobobid thing is even legit or a scam.
Well, that is why you need to read a review of Kobobid Penny Auction. That way, you would know the bidding process on the site works and how you can start bidding if you choose to.
But the question remains that many similar sites like Kobobid have come and gone in Nigeria. They come with mouthwatering promises that will entice you to join them. So, how is Kobobid different? What does it offer this time and is it worth your money? Is it worth the risk?
Let’s take a look.
What Is Kobobid?
Kobobid is a penny auction website in Nigeria where you can bid for items at cheaper prices. You get to bid and win items for way less than they cost in the market. For example, if a fridge costs 100k in the market, you can bid and win that same fridge on Kobobid for let’s say 10k.
But like many other auctions, there is a catch.
Penny auction is quite different from the normal auction where you get to bid for items and then pay for it once you win the bid. With Penny auction, you pay as you make your bid, and when someone bids higher than your bid price, you forfeit the money you used in bidding.
Let me illustrate it.
Let’s say you are bidding for a fridge that normally costs 100k in the market. When the auction starts, the price of the fridge will be at zero. So, the first bidder bids 5k for the fridge, you then bid 10k for it. If the bidder makes another bid of 15k to counter your bid, you will have forfeited the first 10k you bidded with and will need to risk more money to bid again.
In this case, Kobobid has already gained 30k of the bid amount made by you and the first bidder. You will have to continue bidding until nobody counters your bid, before you can win an item.
How To Bid For Items on Kobobid
To start bidding on Kobobid, you need to first sign up on the website and then buy a Bidpack which will be used to make bids on several auctions on Kobobid. Without purchasing a Bidpack, you cannot make a bid or participate in auctions on Kobobid.
The Kobobid Bidpack comes in different Token sizes at different prices. You can purchase a Kobobid Bidpack at 5k, 10k, 25k, etc; depending on how many bid tokens you intend to use on the platform. For example, if you buy the 5k Bidpack, you can make up to 50 bids plus 3 extra free bids.
If you decide to join any Kobobid auction, it is better to buy a higher Bidpack so as to have enough bid tokens and avoid your bid token getting exhausted in the middle of an auction. Just imagine how bad you would feel if you were about to win the bid for an item and your bid token gets exhausted and you cannot finish the auction. That is simply money and time wasted.
Is It Possible To Lose Money With Kobobid?
Yes, it is very possible to lose money with Kobobid. If you don’t win an auction, you lose money in terms of the value of tokens you used in that auction.
Let me give an example.
So, let’s say you sign up on Kobobid and purchase a Bidpack of 5k which gives you 50 bid tokens plus 3 extra. That means you can bid 53 times before your bid token is exhausted. Now, let’s say you participated in that auction to win a fridge, and you exhausted your bid token of 53 bids without winning the auction, you would have effectively lost 5,000 Naira.
Now, if you lose 10 auctions in similar fashion, you would have lost 50,000 Naira on Kobobid. So, there is a risk of losing your money on Kobobid. If you decide to join Kobobid, you will have to zero your mind that loss is inevitable and you should participate only with money you are willing to lose.
Is Kobobid Legit Or Scam?
There is no way to know if Kobobid is legit or a scam. My only suspicion is the legitimacy of the bidding process. Since bidding on Kobobid is a digital process and not a physical one, there is no way to know the real identity of people who are participating in the auction alongside you.
What if you were about to win that fridge that originally cost 100k with a bid of 5k? What is the guarantee that a Kobobid representative would not jump on the auction and inflate the bid price?
Well, your guess is as good as mine.
Is Kobobid Worth The Risk?
In my honest opinion, Kobobid is not worth the risk. My view of Kobobid is like that of playing the lottery. You are guaranteed to lose money, but you are not guaranteed to win the item. And most importantly, you do not control the auction or the bidding process. Heck, you don’t even know who is competing with you on the auction.
In a country where there is lack of trust in the system and many shady schemes are allowed to run wild, there is need not just to create transparency but to prove it.
If Kobobid had utilized the traditional auction model where everyone gets to bid in an auction without committing any money, and only the winner of the auction gets to pay to consolidate or claim the item, then it might be worth the price.
Kobobid could even make money by asking for an auction entry fee where you have to pay a small fee to join an auction and bid for an item. If they required 500 Naira as an entry fee for the auction of a fridge that is valued at 100k, and 100 persons join the auction, they would make 50% of the item value even before the auction begins.
The Kobobid penny auction is a good idea, but there are many discrepancies that may hinder its adoption and growth, especially in a disorganized country like Nigeria where anything goes.
I like the Kobobid idea, but I have my doubts about the legitimacy of the bidding process. I would rather go to the market and buy an item I need than commit money and item to a bidding process that doesn’t guarantee my chances of winning.
If you enjoy gambling or playing the lottery, then you would enjoy bidding on Kobobid. But if you are risk averse and very strict with your time just like me, then Kobobid isn’t for you.