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Online Auctions – How to Determine If They Are Legitimate?

November 18, 2016

Traffic volume and locality are two things to look for in a good site. Here are some things you might like to watch for when you are looking at online auction sites:

Privacy policy – is it prominently posted on the site? Does it guarantee that the site will not sell any of your information? Does it guarantee that there is no spam involved? And does the site provide a secure link to use whenever you are required to enter credit card information?

Procedures for disputes – make sure that there are clearly defined policies for disputed transactions.

Rating systems for both buyers and sellers – this is an important feature because it give both buyers and sellers an opportunity to rate each other so that all who use the site will know who have not kept their end of the bargain.

Clearly defined fees and commissions – you will likely find that many, if not most, sites do not charge any fees to the buyers / bidders but they do charge a small fee to the seller for listing the item(s) and then additionally a commission to pay when an item sells. Doing a comparison of several of the larger sites will help you see the relationship here.

Do they offer support for escrow services, like PayPal for example? These services are a source of protection for both the buyer and the seller in the payment of the transaction. These services allow for the purchase price to be deposited in an escrow account by the buyer when the sale is completed. The funds remain in escrow until the item has been received by the buyer and is determined to be in acceptable condition. It is then released to the seller less the appropriate fees.

Do they offer international payment and shipping options? Most commercial online auction sites will state whether they support international sales. If you are dealing with a person-to-person type of site, it is generally left up to the buyer to consider the option of international shipping methods.

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In your attempts to pick a site, a good piece of advice is given in order to save yourself a good deal of energy. That piece of advice is simply to focus your attention to the larger online auction sites with heavier traffic. If there is a specific item that you desire, run a search for it on BidFind. This is a site that tracks auctions on many sites and provides you with a platform with which to search by keyword or category. While this site is not always up to date, it can be a solid beginning for you.

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Online auctions can be entertaining and enlightening. They don’t have to be scam or fraudulent experiences if you follow some simple guidelines and use common sense. Try your hand at this new experience. How much can you save?

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