| If you are new to the world of auctions, you must | | | | changes, the market for them may collapse. |
| do some research before bidding on products or | | | | 7. Auction Newsletters: |
| services. New online bidders can be paying much | | | | You should sign-up for online auction newsletters, like |
| more for an item than is necessary. Here are some | | | | especially if you are a collector. Some items rarely |
| things that you should look for: | | | | come onto the market, and if you want to know |
| 1. Type of Auction: | | | | when they are available, you must be in the loop. |
| Is it a Dutch, English, Sealed-Bid or Vickrey Auction? | | | | Also, put yourself out there, especially with business |
| Most online auctions are the Dutch-style, which | | | | to consumer auction sites. Send them an email and |
| means the auctioneer asks a certain price as a | | | | tell them what you are looking for and they will put |
| minimum (called a reserve) and the bidders keep | | | | you on a list and notify you when and if the item |
| bidding until time is up. The person who has out-bid | | | | comes available. |
| the others wins and then must pay for the item. | | | | 8. Sniping: |
| Other types of auctions include business to consumer | | | | It has happened to all of us. No one has outbid you |
| or consumer-to-consumer. eBay is the | | | | on the item you want. Your bid has been the top bid |
| consumer-to-consumer model where almost anyone | | | | for about a week. You check your bid moments |
| can sell their wares and anyone can bid on the item | | | | before and when you turn away from the computer |
| or service. is a business to consumer auction site, | | | | for one second a sniper comes in and outbids you |
| where there are trusted vendors who sell new items | | | | and wins. Who is to blame? You are, in most cases. |
| like jewelry, tools, watches and electronics. | | | | A sniper can be bidding on his own or can use |
| 2. No Reserve Bids: | | | | automated bidding tools to outbid you. There is |
| This means there is no minimum amount you must | | | | nothing illegal about it. |
| bid before the auction will send you the item. This is | | | | In an effort to help, most auction sites will |
| a great way to save money and get great items - | | | | automatically extend an auction by five minutes if |
| generally, there is no catch. Check the details before | | | | there is a bid placed in the last 10 minutes of an |
| bidding. | | | | auction. |
| 3. Packing & Shipping Costs: | | | | Proxy bidding is the best thing you can do in this |
| Always, and I cannot stress this enough, always | | | | instance. Figure out what the maximum you wish to |
| check to see how much the shipping charges are | | | | pay is and enter the amount in the correct location. |
| before you bid! There are many examples of people | | | | The amount of your bid will only increase if someone |
| having the winning bid on an item and then realizing | | | | else bids against you. If the sniper comes in and bids |
| the shipping fee is more than the cost of the item. | | | | over you, you have your maximum price entered and |
| 4. Spending: | | | | you can feel good that you did not overspend. |
| Always know the maximum amount of money you | | | | 9. Bigger is Not Necessarily Better: |
| are willing to spend on an item. Also, do your | | | | Auctions that sell anything and everything are great |
| research to find the fair market value of an item. | | | | for someone who buys many different items. |
| Obviously, if the item is antique there are many | | | | Auctions that sell specific niches are definitely better |
| different facets to the auction pricing, including | | | | for collectors. To find auction websites that may be |
| quality, condition and original packaging. Never get | | | | of interest to you just enter a large-scale search |
| overly competitive and just bid to win. You will pay | | | | term like 'jewelry auction' or 'bracelet auction', etc. |
| more money and the other people at the auction will | | | | Bigger auctions may charge the vendor/seller more |
| not be happy since in future you may drive up the | | | | money to list their items and that extra charge will |
| price for items they will bid on. However, you will | | | | trickle down to you. My advice, shop around. |
| make the auction site happy | | | | 10. Oops... |
| 5. Questions & Contact Info: | | | | In the world of online auctions, or any other auctions |
| A reputable auction site or seller will have easy to | | | | for that matter, a bid is a bid, and it is like taking |
| find contact details to answer all of your questions. If | | | | your finger off a checker. You made your move and |
| you find no contact information, do not bid on | | | | now you must live with it. If you must renege, you |
| anything. You may be short-changed on your items | | | | will be considered a bad person, regardless of the |
| and if you cannot contact someone when you want | | | | issue. This is because you have driven up the cost of |
| to buy something, chances are if you want to return | | | | the item for other buyers, you have promised the |
| it or if the item is broken, there will be no one to | | | | vendor that you will buy and now you have just |
| contact then either. | | | | gone back on your word. What do you expect? |
| 6. Fads & Resale Value: | | | | Only, only, only retract your bid when absolutely |
| Items like Cabbage Patch Dolls were big in the 1980s | | | | necessary. Think before you bid. |
| and are now considered collectibles. However, many | | | | Following these basic rules will help you in the online |
| items that were mass produced are worth virtually | | | | auction world. These are not the only things you |
| nothing. Make sure you know the long term outcome | | | | should know, just the basics. Spend some time |
| before you bid. Also, if people are making foolish | | | | watching the auction before bidding and see how it |
| purchases now because they trendy, when fashion | | | | works. Happy Bidding! |