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Online Auction Houses

How to Trade in Complete Security

With the opportunity you can find great bargains but beware, there are risks involved. Online auctions can cause problems unless you are properly prepared. If you are going to do your business through online auction houses, make sure you have familiarized yourself with the rules of the game. Hereís a quick checklist to make sure you can have a hassle free trade.

1. There are a large number of different auction houses offering different specialties. Each one of them will have slightly different rules and regulations covering how trades are conducted. Make sure you have read the rules of each auction house that you want to trade on. Familiarize yourself with the protections that they do offer, covering the return of faulty or damaged goods etc.

Note, almost no auction house will guarantee any part of the transaction. It is up to the buyer to verify that the seller will provide the promised product or service.

2. Almost all of the problems with online auctions (and there are very, very few) arise from the sellers. They do not ship the article, they ship it late, the quality is inferior to that which was advertised and so on. Make sure that you identify the buyer, do not just rely on an e-mail address and see if you can get a phone number, find out why the product or service youíre intending to buy is cheaper than you can buy in a store. If you have the slightest concern, donít make a bid Ė because remember, if your bid is chosen Ė you have to pay! Some auction houses have verified the credentials of their regular sellers; consider buying from these reputable dealers first.

3. Payment. Use a secured online service, often an auction house will recommend one. Donít be lured into making a payment into an escrow account, which has been recommended by the seller. Choose your own if you wish to go this route, the auction house will have some reputable recommendations.

4. Donít be lured off site. Some unscrupulous sellers will suggest that you do a separate trade with them privately. They will say this is to avoid the fees charged by auction houses. If you purchase privately, you lose all the protection offered by the auction house.

5. Donít bid for something you canít afford. And remember that it is usually the buyer who pays for the shipping; so donít forget to add that into the price you are prepared to pay.

6. Remember, the vast majority of sellers and buyers are honest, legitimate people who will honor the agreement reached at an online auction house. However, you need to take some precautions before you bid to make sure that you donít fall prey to a rogue seller (or buyer).

About the Author: David Baker is the owner and creator of where auction sellers and buyers meet.

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