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Internet Auctions – Tips for Online Auction Buyers

Posted on 09. Mar, 2010 by admin in Online Safety

Not all Internet auction sites are created equally. Read the rules and “how it works” sections before bidding. If a tutorial is available, take a few minutes and review it. Read the small print about buyer protection policies. Buyers will want to find auction sites which offer free insurance or guarantees in case an item is not delivered or is improperly represented by a seller. Knowing the policies of the auction site will offset disappointments later.
Research the Item Before Bidding:
Begin the research by reading the product description provided by the seller. Look at the picture for markings of authenticity or possible flaws. Watch for words such as refurbished, closeout or off-brand, especially when considering electronics or computers. Use comparison sites or shop locally to get a realistic price on the item. If it sounds too good to be true on auction proceed with caution.
Warranties and Service:
Consider whether the item comes with a warranty and where you will get follow-up service if you need it. Many sellers do not have the expertise or facilities to provide services for the goods they sell. If that is the case with your seller, be sure you are willing to forfeit that protection before placing a bid.
Find Out About the Seller:
Many Internet auction sites provide feedback on sellers by other buyers. This area is helpful when researching the seller’s reputation. Although this information is helpful, it can easily manipulated by sellers through self-created “shill” testimonials.
Get a telephone number for the seller and use it to confirm that you have some way other than email to contact the seller. In addition, be leery of sellers who try to pull you away from the auction site with promises of better deals.

Forms of Payment:
Before you bid, find out what form of payment the seller will accept. If the seller accepts only cashier’s checks or money orders, decide whether you are willing to take the risk of sending your payment before you receive the product. Most sellers will not ship out the item before payment is received.
Shipping Charges:
Find out who pays for shipping and delivery. Generally, sellers specify the cost of shipping the item and give buyers the option of express delivery for an additional fee. If you are uncertain about shipping costs, check with the seller before you bid. Beware of inflated shipping charges. If a shipping charge seems unreasonable, email the seller and ask how they determined the rate then verify the information with your local postal and delivery services.
Return Policy:
Check on the seller’s return policy. Look for time limitations on returns. Also, find out who has to pay to ship the item back and if the seller charges a restocking fee.
Ask Questions:
If you have any questions about the item or the seller’s policies, email or call the seller to get the answers before you bid. Do not place any bids until all questions are answered to your satisfaction. Although having a phone number of the seller helps verify who they are, having a copy of an email documenting communications with the seller will help later in case a problem arises. What is said over the telephone cannot be documented and used as proof.
Bidding – Stick to Your Price:
Once you have researched the item you will want to set a top price you are willing to pay for the item. Stick to this price. Often bidders are caught up in the process and end up paying too much for something, simply because they wanted to have the winning bid.
Protect Your Privacy When Bidding:
When bidding, take steps to protect your privacy. Do not give out personal identifying information like your Social Security number, driver’s license number or bank account number. No seller should need it.
Keep Documentation: Save all your transaction information. Print or make note of the seller’s identification, the item description and the time, date and price you bid on the item. Print and save a copy of every e-mail you send or receive from the auction company or the seller.

Only Bid If You Intend to Buy: Do not bid on an item you do not intend to buy. Remember that if you are the highest bidder, you are obligated to follow through with the transaction. Auction companies often bar non-paying bidders (those who back out of a deal), from future bidding.

Wrapping Up the Deal: After you receive an e-mail with news that you have “won” an auction, arrange to pay for your purchase. Pay with a credit card, if possible, but it is likely that the seller will require payment by certified check or money order. If you are not comfortable sending a certified check or money order to the seller, consider using an escrow service or paying for your item cash on delivery.
from: About.com Guide