Tips for Participating in Online Auctions
Online auction sites have become an increasingly popular way to buy and sell goods. While eBay is, perhaps, one of the most popular online auction Web sites, plenty of other auction sites also exist online. Through online auctions, you can buy or sell nearly anything, ranging from small items like DVDs to larger, more expensive items such as cars and homes.
However, the ease and convenience that comes with online shopping also carries certain risks. To avoid overspending or being victimized by online scams and cons, be sure you understand how to participate in online auctions so that you can use them as a stress-free way to buy and sell goods.
Tips for Buying and Selling at Online Auctions
Using online auction sites can be a risky process because you usually don't know the seller, nor do you get to see the item for sale in-person. Here are some tips to avoid getting swindled and ensure a successful transaction:
- Inquire about warranties/guarantees: If the auction ad doesn't mention a warranty or any sort of guarantee, e-mail the seller and ask. If a warranty is offered, make sure to get it in writing so it's legally viable if you ever need to take the matter to court.
- Pay attention to the feedback: Almost all online auction sites offer a feedback forum for previous buyers and sellers. If a potential buyer or seller has too many negative comments, you may want to rethink the purchase. Remember to take the time to read this feedback because it can save you money and a lot of hassle.
- Request a return receipt: If you send money to a seller on an online auction, a receipt can protect you against the seller saying they did not receive the money. Return receipts are cheap and available through the postal service.
- Use insurance: Postal insurance is very cheap and essential in case the item you purchased gets damaged or lost en route. Even if nothing happens to your item, the minimal cost of insurance is well worth the peace of mind it will give you, especially on more expensive purchases.
Warnings for Online Auctions
Protect yourself from being victimized by online scam artists by remembering these warnings when buying or selling items through online auction Web sites:
- Be wary of contact outside the online auction: Credible sellers will almost always deal with you through the auction Web site. If you get a direct e-mail from a "seller" about an item on which you have bid, you may be dealing with a hacker who has broken into your account and is posing as the seller of the item. In these instances, e-mail the seller through the auction site to see if the other communication is, in fact, legit.
- Be wary of out-of-country sellers: Sellers not in the U.S. are harder to track down and almost impossible to retrieve any money from if they are indeed trying to swindle you. This is especially true when dealing with high priced items.
- Be wary of overly enticing deals: As the cliché goes, if a deal sounds too good to be true, it probably is. At the very least, do a bit of research on items that seem to be extremely under-priced. While a seller may just be looking to unload the item quickly, under-priced items may also indicate that you are dealing with a scam artist who only wants you to send money.
- Verify addresses: If a "seller" asks you to send money to a location that is different than that listed on the auction site, you probably should not deal with that seller.
Dealing with Online Auction Fever
“Auction fever” occurs when buyers get swept up in the competitive auction process. Online auctions can arouse a competitive nature in individuals seeking to win the bid on a certain item. As auctions progress and the bidding gets near the end, buyers' competitive juices begin flowing and can sometimes lead to bad purchasing decisions.
A strong desire to win an item at these auctions can be hard to tame. Circumstances that can lead to auction fever include:
- pressure: As time expires on a particular item that you want, you may be inclined to make a rash decision and increase your bid on the item. In this situation, there isn't much time to sit back and think rationally about the purchase.
- rivalry: When you feel the competition is down to just you and someone else, it is easy to get caught up in the desire to win. This can encourage you to buy an item for more than it's worth or more than you could pay for it through other retailers.
The key to avoiding auction fever is to stop for a moment or two and make the decision based upon information and not emotions.
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