The rapid spread of “entertainment shopping” spurs indignation

IT IS a familiar format: the stopwatch on the website counts down the time remaining to make bids in the online auction. The price slowly ticks up. Participants monitor the site, hoping to secure a great bargain. But there is a twist: it is the website itself that provides the goods being sold, and the prices only rise by a penny or two per bid. Each new bid, however, extends the length of the auction by a few seconds. That means that competition is fierce and protracted, but winning bids are often absurdly low, even by the standards of online auctions: a flashy new television for $3, say, or a laptop for $20. These enticing offers lure buyers, who must pay a fee of a dollar or so to place each bid. This format, known as “entertainment shopping”, has become so popular that it has spawned a host of websites.

“People will try it because they want to get a good deal,” says Lael Sturm, a co-founder of one such site, GoBid.com. “But it’s the experience that brings them back—they are in it for the thrill of winning.” GoBid, like most of its rivals, is new. It launched officially in America in April. Swoopo, the most prominent site, was founded in Germany in 2005 but in the past two years has expanded into Austria, Canada, Spain, Britain and America. It plans to set up a South Korean website before the end of the year. …