ASK MR. MODEM

Minding Your Bid-Ness

Follow These Online Auction Buying Tips, and You’ll Be Sure to Get What You Pay for

By Richard A. Sherman

very day, millions of people participate in a virtual open-air market, buying and selling everything from family heirlooms to Beanie Babies to Mr. Modem's favorite collectible—pink lawn flamingos. Online auctions or e-auctions, while exciting and profitable for some, can be a bit intimidating for others. Concerns about dealing with strangers, or purchasing something only to find that it never gets delivered, are legitimate. Still, if you follow my suggestions, any online auction can be a safe place to buy, sell, and exchange goods with others—and have a heck of a lot of fun in the process.

Mr. Modem’s Top 10 Tips for Online Auction Safety

1. Understand how the auction works and know what you’re bidding on. Some sites list items for sale without verifying that the merchandise exists or is described accurately. If there is anything in an item description that gives you the heebie-jeebies, ask questions until you’re satisfied with the answers you receive. If you're not comfortable, don't bid on it. 

2. Check out the seller. Look for a “feedback” section on the site with comments about the seller from other purchasers. Keep in mind, however, that comments might be planted by the seller. The Better Business Bureau Online (www.bbbonline.org) may have additional information. Listen to the voice of your inner modem: If you’re the least bit suspicious, don’t participate.

3. Get the name and contact information of the other party to your transaction. The name, street address (not P.O. box) and/or telephone number can be helpful in checking somebody out or following up, if you experience a problem. If a seller refuses to provide that information, walk away from the transaction.

4. Don’t assume that all claims about merchandise or value are true or that photographs are accurate. Print and save descriptions and any photos to document claims made.

5. Understand delivery, returns, warranties and service before paying. Get a commitment for a definite delivery date and insist that the shipment be insured. Print a copy of the return policy and any warranties that may apply.

6. Look for insurance information. Some auction sites provide insurance for buyers up to approximately $250. Other sites provide links to third-party insurance programs. Read the terms of any insurance policy carefully. Specific limitations and restrictions usually apply.

7. Pay by credit card, if at all possible, or by cashier's check or money order. Never send cash. Ever. Paying by credit card allows you to dispute a charge if the merchandise fails to meet representations.

8. Use an escrow service. For a small fee, an escrow service—available through most auction sites—will hold the buyer’s payment, sending it to the seller upon the buyer’s receipt and approval of the item purchased. One popular independent escrow service is www.escrowamerican.com.

9. Report any problems immediately to the auction site. Sites want to know about sellers who don’t deliver or who misrepresent merchandise. 

10. Use common sense and stay focused. Getting caught up in an auction buying frenzy is easy to do. So be sure you really, really want that lava lamp or Louis XIV Pez dispenser before bidding. Know something about what you're bidding on or seek assistance from someone who does.

            To paraphrase an old adage applicable to today’s online auctions, "You make your bid, you lie in it." So have fun, but stay safe!

What You Can Do If a Problem Arises

            It’s easy to let your mind run wild and believe that fraud abounds in online auctions, but that isn’t the case at all. The reality is that the majority of sellers and buyers are honest people who deliver on their promises. According to eBay, only one transaction in 40,000 ends with a case of confirmed fraud. So be careful, but there's no need to be paranoid. If my suggestions for safe auctioning slip your mind (gasp!) and you wind up getting burned or even virtually scorched by a seller who vaporizes after receiving your money, all is not lost. There are a number of things you can do to salvage the situation:

1. If you paid by credit card, notify your card issuer; if you paid by cashier’s check or money order, contact your bank to determine if the cashier’s check or money order has been cashed. Ask your financial institution what options are available to you if your check or money order has not been negotiated.

2. Send a demand letter. Place the seller on notice, by e-mail and certified mail (with return receipt), that you are going to file a complaint with the auction site, dispute the charge, and aggressively pursue the matter legally if your money is not returned by a given date and time.

3. Report the incident to the auction site. Provide names, dates, your auction number, and any additional information that you might have within your possession.

4. If your transaction took place via U.S. mail, go to your local post office and fill out a mail-fraud form and request an investigation. 

5. Report the incident to the National Fraud Information Center at www.fraud.org  and the Federal Trade Commission at www.ftc.gov.

6. File a complaint with your state attorney general’s office. Contact information is available through http://law.freeadvice.com/resources/state_attorney_general.htm.

7. If your local newspaper, radio or TV stations have a “Consumer Advocate” who investigates cases of consumer fraud, contact that person, as well.

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Richard A. Sherman, a k a Mr. Modem, is a nationally syndicated columnist, whose “Ask Mr. Modem!” column appears in more than 60 publications throughout the U.S. and in Canada. As publisher of the popular “Ask Mr. Modem” weekly newsletter, he provides easy-to-understand, non-technical, computer- and Internet-related answers to questions received from subscribers worldwide. He is the author of eight books, including “Mr. Modem’s Internet Guide for Seniors” (Sybex) and “Ask Mr. Modem,” a collection of hundreds of frequently asked computer and Internet questions received from readers. Richard is a contributing editor to TechTV and host of the daily "Mr. Modem Minute" television segment produced by FOX-TV.

Surfing Beyond eBay: Auction Web Sites That Want Your Bid-Ness!  

Auction Oddities

If you've ever visited an auction site and wondered to yourself "Where's all the really ugly stuff?" do I have a site for you! Whowouldbuythat.com scours the Web each day for people selling such exquisite gems as macrame/Fresca-can hats, fighting rooster ashtrays, and paintings of religious figures on scooters. What’s not to like?

www.whowouldbuythat.com

BidXS

This auction search engine will help you quickly locate items available on more than 300 online auction sites. Searchable and sortable by category, price range, and length of time available.

www.bidxs.com/

eBay

The mother of all auction sites. Whatever you're looking to buy or sell, make eBay your first stop.

www.ebay.com

Internet Auction List

Links to auctions of every type—both online and offline.

www.internetauctionlist.com

Strong Numbers

Known as “The Blue Book for Everything,” here you can locate the current market value of a particular piece of merchandise. It canvases auction sites, looking for the price histories of everything from cars and electronics to cameras and collectibles.

www.strongnumbers.com

uBid

Right up there with eBay, uBid was named as a Bidder's Edge Trusted Auction site—an auction site at which buyers can make purchases with confidence.

www.ubid.com

Yahoo! Auctions

Thousands of domestic and international auctions. If it's being auctioned, you can find it here.

http://auctions.yahoo.com/

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