Carefully Navigating Online Auctions
- By Tom Selwick
- Published 11/12/2010
- Online Auctions
- Unrated
There are several things you should know about online auctions before you make a bid. If you are completely new to bidding online, you may have found a really great deal.
However, you will need to do some research before you go for the seeming 'great deal.' Unfortunately, there are many people out there who are trying to take your money without giving you anything or the item that you would really like.
In addition, hidden fees may make this 'great deal' a horrible one in comparison with the new price at the local department store. As you do your research there are several things you should look for.
The first thing that you should do is determine what kind of auction you are look at. Some of the various types you may run across include Dutch-style, English-style, sealed-bid, and Vickrey.
Most of the auctions you will come across are Dutch-style. This means that the auctioneer will ask for a minimum price and set a time limit.
The minimum price is called a reserve. The bidders must keep on bidding until all of the time runs out.
The person who has bid the most when the time runs out is declared the winner and must pay for the item. In turn, the item should be sent to the winner.
There are also auctions that are run between a business and consumers or between consumers. The most famous auction site is eBay.
EBay runs on the consumer to consumer type of model. You can sell anything or buy pretty much anything.
It is best if you can find an auction where there is no reserve. This means that there is not minimum amount of money you must pay in order to obtain the item.
In the end, this means that you could get the item for a very cheap price. There is a catch is not necessarily a catch if there is not reserve price.
Take advantage of the offer as long as everything else seems trustworthy. However, you must continue to examine many of the details.
The
next thing you will want to look at are the packing and shipping costs. Sometimes the shipping costs can be more than the cost of the item.
In these cases, the shipping costs are designed to make up for the great deal you thought you were getting. If the shipping prices are way too high, avoid that auction site.
Another thing you will need to decide on is how much money you are willing to spend on the item. When you start bidding, you will feel the pressure of the battle and you will be tempted to go higher and higher.
However, in the end you will regret it when you spend more than you can afford or more than the item is worth. Set a limit to how much you will pay and stick to it.
If the auction site and item have passed the test so far, you will want to send an email to the auction seller. Reputable auction sellers will generally have their contact details in a location that they are easy to find.
In addition, they will send a quick response to your email. Non-reputable sellers will not have contact details, will not send a prompt response, or will not send a response at all.
It is a very good idea to ask some questions about the item which are not covered in the description. This way you will be able to test the knowledge of the seller.
Sometimes the seller is not trying to trick you, but he or she simply does not know whether the product is quality or not. If you do not find any contact information, do not purchase from the seller.
If you cannot contact them now it will be a miracle if you can contact them is something goes wrong with your order. Be very careful who you purchase from.
It is also a very good idea to know which items are fads and which ones will have true worth or resale value. For example, you could spend an arm and a leg for a collectible item only to find out it was mass produced and even though it is a collectible, it is not worth very much.
As you carefully navigate the world of online auctions, you will be able to avoid fraudsters. In addition, you may come across some really great deals that can save you a lot of money.
However, you will need to do some research before you go for the seeming 'great deal.' Unfortunately, there are many people out there who are trying to take your money without giving you anything or the item that you would really like.
In addition, hidden fees may make this 'great deal' a horrible one in comparison with the new price at the local department store. As you do your research there are several things you should look for.
The first thing that you should do is determine what kind of auction you are look at. Some of the various types you may run across include Dutch-style, English-style, sealed-bid, and Vickrey.
Most of the auctions you will come across are Dutch-style. This means that the auctioneer will ask for a minimum price and set a time limit.
The minimum price is called a reserve. The bidders must keep on bidding until all of the time runs out.
The person who has bid the most when the time runs out is declared the winner and must pay for the item. In turn, the item should be sent to the winner.
There are also auctions that are run between a business and consumers or between consumers. The most famous auction site is eBay.
EBay runs on the consumer to consumer type of model. You can sell anything or buy pretty much anything.
It is best if you can find an auction where there is no reserve. This means that there is not minimum amount of money you must pay in order to obtain the item.
In the end, this means that you could get the item for a very cheap price. There is a catch is not necessarily a catch if there is not reserve price.
Take advantage of the offer as long as everything else seems trustworthy. However, you must continue to examine many of the details.
The
In these cases, the shipping costs are designed to make up for the great deal you thought you were getting. If the shipping prices are way too high, avoid that auction site.
Another thing you will need to decide on is how much money you are willing to spend on the item. When you start bidding, you will feel the pressure of the battle and you will be tempted to go higher and higher.
However, in the end you will regret it when you spend more than you can afford or more than the item is worth. Set a limit to how much you will pay and stick to it.
If the auction site and item have passed the test so far, you will want to send an email to the auction seller. Reputable auction sellers will generally have their contact details in a location that they are easy to find.
In addition, they will send a quick response to your email. Non-reputable sellers will not have contact details, will not send a prompt response, or will not send a response at all.
It is a very good idea to ask some questions about the item which are not covered in the description. This way you will be able to test the knowledge of the seller.
Sometimes the seller is not trying to trick you, but he or she simply does not know whether the product is quality or not. If you do not find any contact information, do not purchase from the seller.
If you cannot contact them now it will be a miracle if you can contact them is something goes wrong with your order. Be very careful who you purchase from.
It is also a very good idea to know which items are fads and which ones will have true worth or resale value. For example, you could spend an arm and a leg for a collectible item only to find out it was mass produced and even though it is a collectible, it is not worth very much.
As you carefully navigate the world of online auctions, you will be able to avoid fraudsters. In addition, you may come across some really great deals that can save you a lot of money.
Tom Selwick
Tommy Greene has worked as an auctioneer for the past 18 years and written hundreds of articles about penny auctions and Bidsauce. Contact Info: Tom Selwick TomSelwick09@gmail.com http://www.bidsauce.com
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