Auction Action Online: Buying and Selling On eBay
Just twenty years ago the word “auction” was associated with
the names Christie and Sotheby.
It also conjured up images of distinguished ladies and gentlemen in fine clothes gathered in plush rooms
bidding for rare and / or luxurious items and antiques.
Today the Internet has changed all that with online auction sites.
The most popular of which is eBay.
Anyone with Internet access can participate in an auction.
Bidders don’t even have to be in the same time zone, much less in the same room.
Whereas before when items for auction were limited to expensive antiques and works by master artists;
today, almost anything can be auctioned, even one’s own creations can be put up for sale.
An auction on eBay works as follows.
- All participants (particularly sellers) need to sign onto eBay and establish an account.
An account is identified by a user chosen screen name (e.g. TheOnLineAuctionSeller123).
Should the user turn out to violate eBay rules consistently,
the website can discontinue the account as sanctions against the user.
- With the exception of drugs, pornography and illegal items,
a seller can put up anything for a bid (e.g. glow in the dark dog collar).
The seller can set a reserve price, and a minimum bid (e.g. $2).
- He announces the item for sale along with a sales pitch,
the product’s description and photo (e.g. Never Need to Look for Rover at Night with Glow In the Dark Collars!).
A bidding period is set for the auction, averaging around 2 weeks,
after which the bid is closed and the highest bid is set as the selling price.
- Once a buyer finds an item they’re interested in.
They can place a bid for the item.
That bid has to be greater than the minimum bid and higher than bids previously placed by other interested parties.
- As more and more bids are placed by different bidderes, the price increases.
The highest bidder when the auction ends becomes the auction winner.
After that, it’s simply a matter of coordinating with the buyer to arrange payment and delivery of the item.
It is simple. That is why online auctions have become one of the most popular
ways to sell and buy goods online.
It is now easy for buyers to locate and purchase hard-to-find items.
Is is also easy for sellers to find buyers for their unusual items that may have a very limited market.
It also allows a fair deal to be struck between buyer and seller.
Unfortunately - like all markets - it id not free of fraud.
In fact, according to the Federal Trade Commission (FTC), Internet auction fraud ranks as one of the most
filed consumer fraud complaints over the past three years.
And the complaints aren’t exclusive to buyers,
sellers have also been scammed by deceitful buyers.
If you know what these scams are you should avoid becoming a victim. Keep an eye open for the following:
Bid siphoning
After you have shown an interest in an item,
the person selling will contact you (usually via email)
to tell you that there is an “alternate” auction site
where you can get the item for much less than the current top bid posted on eBay.
Legitimate auction sites like eBay offer protection for buyers in the form of insurance.
Should a seller fail to deliver an item you have paid for,
eBay may be able to refund your money, and recharge the seller.
However, if you made the transaction outside eBay, then you will have no protection.
Shill bidding
A shill is a swindler’s accomplice who will try to drive up the price by bidding against
legitimate bidders thus inflating the value of the item.
The shill places high bids for the item luring other bidders to beat his offer.
In the end, the person who made the highest bid pays for something that is of inflated or compromised value
(stolen, knock-offs, refurbished instead of brand new, etc.).
Bid shielding
A scam perpetrated by buyers. An item is shielded from a fair bid by a buyer when he places
a very high bid for the item.
Other bidders leave the auction when they see the high price they have to compete with.
Just before the bid closes, the scammer will withdraw his bid and then under another name,
will place a much lower bid.
Since the auction is about to end, the lower bid is set as the item’s final selling price.
These are the most filed cases of
Internet auction fraud. Being aware of these should help
in avoiding the unpleasant experience of being scammed.
Nevertheless, buying and selling on Ebay is still a good way to
buy and sell the items you want at prices that are fair to everyone.
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