Listia: Free things to auction online

This is one of the most interesting startup that I came across recently, as we all know, there are a lot of auction websites that exists today (like eBay). The normal auction stuff applies like seller posts their items, buyers bid for items and then winning buyer pays for the item. A new startup called Listia, is going to change a little bit on the system by having free auctions…

… How is it free? Buyers don’t necessarily need to buy to get items, they simply have to either sell something and earn credits, referring friends or just buying credits from them. What I found really interesting is that the concept evolved out of the recession, where people can dispose unwanted items and earn something out of it and use that credits to exchange for something else. The interface is somehow exactly like eBay but the difference is that they have a map (which is a limitation explained below).

– Listia Auction Screenshot –

When you first join, you don’t have to pay anything and you get an automatic 500 free credits. Their credits are priced at 10 credits = $1, so you get free $50 right away. How it works is:

1. User list unwanted item for sale
2. Other Users use credits to bid on the item
3. Highest bidder wins

The only limitation that I found is that you won’t be able to transfer the item to the winning bidder (as it is free, unless one party would like to shoulder the costs), so most of the time, it only applies locally where transfer of possession isn’t so hard.

People could earn credits for items they don’t want and exchange it to something that they like. At this time of recession, people are tight on budgets and the thought of exchanging items they don’t want is an attractive offer. There are other barter trades before, but this makes it very different because there’s a value attached to each item (10 credits = $1) and it is valued by people who want it. The freedom of people to then exchange their credits into something else without being limited to the person they trade with is just a great concept.

I’m amazed and support Listia for their cause, it’s a very innovative and attractive startup especially it’s released at the perfect time. People have moved on with Barter trade and want value but don’t want to spend money, and this has finally solved that problem. I hope they do well with their system, this is just a great freemium in the making.