Tips for the beginning auction seller

Understand how the auction works. Many online auctions simply list
items that people want to sell. They don’t verify that the
merchandise actually exists or that it is described accurately, and
they can’t guaranty that the sellers will keep their
promises.

Check out the seller before you bid. Some auction sites have feedback
forums with comments about the sellers based on other
people’s experiences. Be aware that positive reports may have
been “planted” by the seller and negative comments
could be from a competitor. Other sources of information are state or
local consumer protection agencies and the Better Business Bureau.
Negative information is a good warning sign, but a clean complaint
record doesn’t guarantee that your transaction will go
smoothly.

Be careful if the seller is a private individual. Many consumer
protection laws don’t apply to private sales, though
government agencies may take action if there are many complaints the
same individual or criminal fraud is involved.

Be especially cautious when dealing with sellers in other countries. If
you have a problem, the physical distance, difference in legal systems,
and other factors could make resolving it very difficult.

Beware of “shills.” The seller may try to raise the
price artificially by making bids under fictitious names or recruiting
other people to make bids. Using bogus bidders is illegal and a
violation of online auction policies.

Get the name and contact information of the seller. The name, physical
street address, email address, and phone number are helpful to have for
checking the seller out and following up later if there is a problem.
Don’t do business with anyone who refuses to provide that
information.

Be wary of claims about collectibles and other expensive items. Since
you can’t examine the merchandise or have it appraised until
after the sale, don’t assume that claims about its condition
or value are true, or that photographs are accurate. Print out and save
the description and any photos to document the claims that were made.

Ask about delivery, returns, warranties and service before you pay. Get
a definite delivery time and insist that the shipment is insured. Ask
about the return policy. If you’re buying electronic goods or
appliances, find out if there is a warranty and how to get service.

Look for information on the auction site about insurance. Some auction
sites provide insurance that covers buyers up to a certain amount if
something goes wrong. Others may have links to third-party programs
that offer insurance for a fee. Read the terms of the insurance
carefully. There is often a deductible, and there be other limitations
or requirements that apply. For example, you may not be covered if the
seller had a negative feedback rating on the auction site at the time
of the transaction.

Pay by credit card. Under federal law, you can dispute the charges if
you paid the seller with a credit card and the goods were never
delivered or if they were misrepresented. If you are paying through an
intermediary service, ask what happens in the case of disputes.

Look for bonded sellers. Some sellers are bonded through programs that
have investigated their business backgrounds and credit histories and
guaranty your money back if they don’t fulfill their
promises. Click on the program symbol to learn how the bonding program
works and verify that the seller is a member in good standing.

Consider using an escrow service for expensive purchases that
aren’t covered by insurance or bonding. For a small fee, an
escrow service takes your payment and forwards it to the seller once
you confirm satisfactory delivery. If there is a dispute, the
escrow service may act as a referee. Ask if the service is
licensed and bonded, and how you can confirm that with the appropriate
agency.

Try mediation to resolve disputes. Not all problems are due to fraud.
Sometimes people simply fail to hold up their side of the bargain in a
timely manner or there may be a misunderstanding about something. Some
auction sites provide links to third-party mediation services that help
people resolve disputes. There may be a small fee that is usually paid
by the party who requests the mediation.

Inform auction sites about suspected fraud. They may have policies to
remove sellers from their sites if they use
“shills” or don’t live up to their
obligations.