Oct 02, 2022
Buying Items on Internet Auction Sites
Tips for Buyers...
Despite complaints of fraud, online auctions remain a fun, efficient, and relatively safe way to shop â€” if you act prudently. Hereâ€™s how:
Become familiar with the auction site. Never assume that the rules of one auction site apply to another. If the site offers a step-by-step tutorial on the bidding process, take it. It may save you frustration and disappointment later.
Find out what protections the auction site offers buyers. Some sites provide free insurance or guarantees for items that are not delivered, not authentic, or not what the seller claims. Know exactly what youâ€™re bidding on. Read the sellerâ€™s description of the item or service, and if a photograph is posted, look at it. Read the fine print. Look for words like â€œrefurbished,â€ â€œclose out,â€ â€œdiscontinued,â€ or â€œoff-brandâ€ â€” especially when shopping for computer or electronic equipment â€” to get a better idea of the condition of the item. Sometimes this information and other important terms are in a contract that may be found by following a hyperlink in the listing to the sellerâ€™s online store.
Try to determine the relative value of an item before you bid. Be skeptical if the price sounds too low to be realistic. â€œBrick-and-mortarâ€ stores and price comparison sites may be good for reality checks.
Find out all you can about the seller. Avoid doing business with sellers you canâ€™t identify, especially those who try to lure you off the auction site with promises of a better deal. Donâ€™t trust emails alone. Some fraudulent sellers have used forged email headers that make follow-up difficult, if not impossible. Get the sellerâ€™s telephone number as another way to get in touch. Dial the number to confirm that it is correct. Some auction sites post feedback ratings of sellers based on comments by other buyers. Check them out. Although these comments and ratings may give you some idea of how youâ€™ll be treated, comments sometimes are submitted by the seller or â€œshillsâ€ paid by the seller. In other cases, a seller may build up his reputation by selling many low cost items before making fraudulent sales of higher cost items.
Consider whether the item comes with a warranty, and whether follow-up service is available if you need it. Many sellers donâ€™t have the expertise or facilities to provide services for the goods they sell. If this is the case with your seller, be sure youâ€™re willing to forfeit that protection before placing a bid.
Find out who pays for shipping and delivery. Generally, sellers specify the cost of shipping and give buyers the option for express delivery at an additional cost. If youâ€™re uncertain about shipping costs, check with the seller before you bid.
Check on the sellerâ€™s return policy. Can you return the item for a full refund if youâ€™re not satisfied with it? If you return it, are you required to pay shipping costs or a restocking fee? Sometimes the return policy is found in the listing, but other times you may have to access it by following a hyperlink in the listing to the sellerâ€™s online store.
Email or call the seller if you have any questions. Donâ€™t place any bids until you get straight â€” and satisfactory â€” answers.
Establish a top price and stick to it. This can help ensure that you get a fair price and protect you from â€œshill bidding.â€ Donâ€™t bid on an item you donâ€™t intend to buy. If youâ€™re the highest bidder, youâ€™re obligated to follow through with the transaction. Some auction sites bar â€œnon-payingâ€ bidders, also known as â€œdeadbeats,â€ from future bidding.
Save all transaction information. Print the sellerâ€™s identification, the item description, and the time, date, and price of your bid. Print and save every email you send and receive from the auction company or the seller.
Protect your funds. Know what form of payment the seller accepts. If the seller accepts only cashierâ€™s checks or money orders, decide whether youâ€™re willing to risk sending your payment before you receive the product. Never wire money to a person you donâ€™t know or whose identity you canâ€™t verify.
If the seller insists on using a particular escrow or online payment service youâ€™ve never heard of, check it out. Visit its website. Be suspicious of any site that is generally of poor quality with misspelled words or claims that it is affiliated with the government. Call the customer service line. If there isnâ€™t one â€” or if you call and canâ€™t reach someone â€” donâ€™t use the service.
Before you agree to use any online payment or escrow service, read the serviceâ€™s terms of agreement. If itâ€™s an online payment service, find out whether it offers buyers any recourse if sellers donâ€™t keep their end of the bargain, whether it prevents sellers from accessing their funds if buyers are not satisfied with the product, and who is responsible for paying for credit card charge backs or transaction reversal requests. If the online payment service cannot recover the loss from the seller, it might try to recover its loss from you, using the credit card or bank account information in its file. To limit your exposure, consider reserving a separate credit card, stored-value card, or bank account to use just for your online transactions.
Be suspicious of an online escrow service that cannot process its own transactions and requires you to set up accounts with online payment services. Legitimate escrow services never do this.
Check with the Better Business Bureau, state attorney general, or consumer protection agency â€” where you live and where the online payment or escrow service is based â€” to see whether there are any unresolved complaints against the service. A lack of complaints doesnâ€™t mean that a service doesnâ€™t have any problems. Many scammers change their company names often.
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