Online Auctions.
Getting the Best Buy.

Online auctions are a bountiful bargain source of new and used items from A-Z. There is however, an element of risk. With the proper precautions you can protect yourself and find a bargain.

Fraudulent Practices

The most common types of fraud related to internet auctions involve sellers who fail to send the item, send an item that is worth less than the one advertised, do not deliver in a timely manner, and/or do not disclose important information about the item or the terms of the sale.

Buyers have also experienced other problems such as:

Bid Shielding - In this situation the con is the buyer. Double shame on him/her. The con bids very high, discouraging other bidders from bidding. Right before the auction ends, the con retracts the bid and one of their cronies picks up the item cheap.

Bid Siphoning - The con tries to lure you off of a legitimate auction site by offering you the same item at a lower price. They take your money and give you nothing. Any protection the legitimate site may have offered is lost.

Fraudulent Escrow Service - The con puts an item up for sale at an online auction site. He/She insists on a specific escrow service. The buyer sends payment to the service but never gets the item and can't locate the seller.

Because the escrow service was part of the fraud, the money is lost. If you use an escrow service, always make sure it is a reputable and legitimate service.

Phishing - If you ever get an email or pop-up message that asks for passwords, personal information, or account information, do not reply. If there is a link in the message, do not click on it.

Even if it looks and sounds like it's from a legitimate auction website or payment service, know that it is not. Legitimate companies never ask for this information by email.

This email is from someone who is phishing for information so they can hack into your account. Call the company that supposedly sent you the email by using a verifiable phone number, if possible.

You could also close your browser session, open a new one, and type in the company's correct web address. Do not cut and paste the URL from the fraudulent email.

Second Chance Offers - When an auction closes and you are not the winning bidder, the con will offer you a second chance to purchase an item. Again, you get nothing and lose any protection you may have had.

Shill Bidding - The con, or his/her buddies drive up the price of their item by bidding on it. Check the past sales and feedback ratings of this seller. If you see the same names over and over again, you may want to find a better bargain elsewhere.

Fraud Prevention

There are numerous online auction sites. Not all of them operate the same. Take the step by step tutorial if it's available. Know how the bidding procedure works for that site. Some sites may offer insurance or guarantees.

Learn all you can about the seller. Some online auctions have seller feedback ratings based on the comments of other buyers. Make sure you can contact the seller by phone and/or a physical address and not just by an email address or P.O. Box.

Call the phone number and/or write the address to verify it is legitimate. Beware of sellers that try to lure you away from the internet auction site.

Make sure of the item itself. Read the description and examine the pictures closely. Know what it is worth before you bid. Does it come with a warranty? Is it new, used, rebuilt, or refurbished? How much is the shipping? Insurance? What about returns? What form of payment is accepted?

If you have questions about anything ask the seller before you bid. Determine in advance what the top price is that you are willing to pay. The idea is to get a bargain, not just to win the auction.

Some payment options available are cashiers check, credit card, debit card, electronic bank transfer, escrow service, money order, online payment service, personal check, and wire transfer.

Some of these methods are safer than others. Some of them are accepted by sellers and online auction sites while others are not. Make sure before you bid.

Credit cards allow a buyer to seek a credit, or charge back, if the item isn't delivered or isn't what it was supposed to be. Online payment services offer the benefit of using a credit card or electronic bank transfer without having to share your financial account information with sellers.

Online payment services differ in the service and protections offered to the consumer so check them out good. Read the terms of service and privacy policies.

If your questions can't be answered to your satisfaction from the site and/or you can't get in contact with a real person, find a different service or use a different method of payment.

Cash equivalent methods such as cashiers check, debit card, money order, or personal check should only be sent to sellers you trust, and never to P.O. Boxes. Avoid wire transfers. They offer no recourse if a deal goes bad.

If you are going to use an online payment service, or an online escrow service, make sure they are a legitimate and reputable service.

Check them out with the Better Business Bureau, the Attorney Generals Office, or a consumer protection agency where you live and also where the service is based. Read and understand the service company's terms of use agreement and privacy policy.

Always protect your identity. Never give out your social security number, drivers license number, your PIN, or account passwords.

Taking these precautions will help your online auction experience to be a pleasant one and keep your bargain a bargain. If however, you run into a problem, try to resolve it with the seller or the internet auction site.

If that does not solve the problem then file a complaint with the Better Business Bureau, the Federal Trade Commission, the Attorney Generals Office in your state, and/or a local consumer protection agency.

Online Auction Sites

Sellers usually set a time limit for the auction to end. They may also set a reserve price. If the bid does not meet the reserve price by the end of the auction, the item does not sell.

A seller may also list a "buy it now" price in which you can buy it for a specific price before the auction ends. Some sites specialize in reverse auctions where the price drops until someone bids on the item.

Online auction sites differ in the way they do business and in auction procedures. Be informed. Read the terms of use and any other information they have. Understand their procedures so you are not surprised later.

Whatever it is you are looking for, you will probably find it at an online auction. Most people think of ebay when they think of online auctions. They are king of the hill.

However, there are many more big players in the field and countless smaller sites also. Just put online auctions into your search box and you will get the idea.

You can also enter what it is you are looking for. Perhaps online jewelry auctions or online boat auctions. If your looking for a cheap car try online car auction, or online auto auction.

There are reverse auto auctions where you put in what car you are looking for and dealers give you their lowest prices. You know what you are looking for better than I do. Just add what you are looking for with online auctions and the hunt begins.

Many government auctions are conducted online. These may include GSA auctions, IRS auctions, and Police auctions. There are sites that compile these different auction sites into directories that may be of use to you.

Online auctions are an excellent bargain source and the number of online auction sites are almost endless. My philosophy is, "So many online auctions, so little time."

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