Auctions Online

Online Auctions

You are walking down the street and you see someone holding a picture of an item you are interested in buying with the words For Sale underneath the picture.

The person doesn't say anything to you but it is obvious the item is for sale. You walk up to the person and ask them how much?

They tell you a price and it sounds like a real bargain — almost too good to be true.

You want the item but you hesitate, uncertain if you can trust the vendor. The vendor senses your hesitation and, from an inside coat pocket produces letters of reference for you to read.

Satisfied with the price and letters of reference you tell the vendor you wish to purchase the item. The vendor looks at you and says Pay me the money now and meet me back here in one week and I will give you the item.

Would you do it?

Is an online auction any different?

When you visit an online auction you:

  • look at a picture of an item you wish to purchase
  • you check the price
  • then check the rating (references) of the vendor

    • If you're happy with all of this you then:

  • communicate with the vendor via e-mail
  • pay him for the item
  • expect that you will receive the item you purchased
The only difference between these two scenarios is that in the former, you at least see the vendor face to face and, in the latter, you don't.

Are online auctions bad?

Of course not. Using common sense and armed with some knowledge anyone can have a positive online auction experience. We have included some excellent links to assist you in selling and purchasing at online auction sites.

Being Careful

One of the most important things you can do when purchasing through an online auction is to avoid sending/transferring money directly from your bank account to someone else's and never pay for an item with a personal or cashier's cheque (for our American friends that would be "check") and never pay by sending a money order postal or otherwise.

Our suggestion is to pay using an Escrow service such as PayPal® or a credit card. If you are going to use a credit card we suggest that you have a card that is specific for on-line purchases with a minimal credit limit. This will protect you from a large loss should something go wrong and it will also limit the loss to an innocent retailer should your card be somehow compromised.

Selling On-line

When selling on-line, beware of the over-payment scam. Many a vendor has received a cheque or money order for the item they are selling and the amount is in excess of the agreed on selling price. Usually there will be a note accompanying the payment stating that the buyer forgot the exact agreed upon price or there was extra included for shipping and the buyer will request that you just refund them the difference. If this happens to you do not cash the cheque or money order it is most likely stolen or counterfeit. If you cash the item you will be held responsible when the cheque is returned to your bank.