Online auctions are very popular with 35 million Americans participating at some stage. Most auction goers are happy with their experiences, but four in ten buyers and half of sellers claim they have encountered problems with Internet auctions. (Source: Harris Interactive survey 2001)
Many buyers pay by sending a check, cashier's check or money order directly to the seller. This is ok if everything goes well, however, if there is a problem, the money is already gone.
The most common problem for buyers is late delivery. Other problems include receiving items that are different than those promised, items arriving in damaged condition, and never receiving the items at all. Sellers report problems such as late payment, non-payment, buyer's changing their minds, checks bouncing and buyers using stolen credit cards.
Prevention:
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Reduce the risk of Online Auctions by using credit cards for payment. This way the sellers get their money immediately, and buyers can dispute the charges if the merchandise was misrepresented or not delivered.
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Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the sellers obligations are before you bid.
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Find out what actions the web site/company takes if a problem occurs and consider insuring the transaction and shipment.
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Learn as much as possible about the seller, especially if the only information you have is an email address.
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Examine the feedback of the seller.
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If a problem occurs with the auction transaction, it could be much more difficult if the seller is located outside the U.S. because of a difference in laws.
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Ask the seller about when delivery can be expected and if there is a problem with the merchandise is it covered by a warranty or can you exchange it.
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Find out if shipping and delivery are included in the auction price or are there additional costs.
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There is no reason to give out your social security number or driver's license number to the seller.
When shopping online, you need to know:
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Who you are dealing with.
Ensure that you can find the merchants name, address and telephone/fax numbers so you can contact them if you require further information. Check the web site for quality assurance certificates or seals. You can also check who has registered the domain name by checking it out at
www.whois.net
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What you are buying.
When you buy online, you can't touch or test what you want to buy. Only purchase from web sites that provide a detailed description of the product.
Ensure you know the complete cost of the product. Are there any shipping or handling fees, taxes or duties that have not been included in the purchase price. Know what currency the purchase is in.
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What you are agreeing to.
The merchant should provide you with terms and conditions of your purchase in plain English. Read the conditions carefully so you know what you are signing up for.
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What you can do when you are not happy with your purchase.
What is the company's refund or return policy? Is there a process for handling complaints? Is it clear who is responsible for handling post-sales enquiries?
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What the business does with the information it collects you.
Many merchants user your information to develop marketing profiles or sell their lists to others. Merchants should make it clear what they do with your personal information by providing a privacy policy. If you are not comfortable with their policy or are unsure what they will do with your personal information, do not buy from them.
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Whether the payment system is secure.
Before you provide credit card or financial information, ensure the merchant has a secure payment transaction system. Look for one or both of these signs that the site is secure:
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A lock icon at the bottom of the screen, in the status bar of your browser. If the site is secure, the lock will be closed.
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The website address begins with https:// - the 's' indicates the site is secure.
