Auction Buying Secrets

Avoid Bad Deals When Using Auctions

Auctions offer lots of great deals, but also the opportunity for you to get taken by online hucksters.

Online auctions are enticing millions of people to bid on everything from Beanie Babies to works of fine art. Total spending at online auctions during the next four years is expected to reach $7.1 billion, according to NUA Internet Surveys. While the majority of online bidders have good experiences, complaints about online auction fraud are on the rise.

EBay makes it easy to run a background check on the person you're buying from.

Know whom you're dealing with by checking out the seller before you begin bidding. Click the "Seller's Feedback Profile" link under the seller's name, and then browse the comment list carefully. Disregard the comments this person has accrued as a buyer. You want to know what they're like as a seller: Look for comments regarding shipping, e-mail response speed, whether the goods were accurately described, and so on. Pay special attention to negative comments--and any rebuttal from the seller--and don't hesitate to e-mail a buyer for a more thorough recommendation or an explanation of a problem. Most Auction buyers will be happy to help.

How can you protect yourself at auction sites,

• Less than 1 percent of all transactions on auction sites have experienced fraud. Though it's rare to get ripped off, it's always good to take precautions.

• Protect your purchases by using a credit card. This lets you put a stop on a transaction if you are dissatisfied.

• Another option is to use an online escrow service. Escrow services are third-party administrators that hold your money until you tell them that you have received the item and are satisfied.

• Escrow services charge a fee. So you may want to limit your use of escrow services to purchases of $100 or more.

• Avoid sellers with negative feedback. Do not send money to a seller after a close of an auction until you get an email with ordering specifics.
  
  
• You may also want to be wary of new sellers when buying items over $100. Send an email to them and see if they reply in a timely matter with a good answer to your question.