« June 2006 | Main | September 2006 »

July 31, 2006

Mastering eBay: Buying

What is eBay and why should I care?

Founded in 1995, eBay (http://www.ebay.com) is by far the largest Internet auction site, boasting more than 100 million users. It’s become a worldwide phenomenon, radically expanding the marketplace for new and used items.

Sellers, once relegated to listing items in newspaper classifieds or unloading them at garage sales, can now use eBay to attract buyers from across the globe. Buyers also benefit. From the obscure to the nostalgic, eBay’s diverse and constantly changing collection of auctions offers something for everyone.

Isn’t it risky to buy from a private seller over the Internet?

It’s true that sending money to someone across the country in return for promised merchandise is a gamble. Of course, buying from someone’s classified advertisement in the back of a magazine can be equally risky.

Fortunately, eBay has systems in place to offer buyers some protection against fraud, though they are not foolproof. By trusting your instincts and using the tips provided in this report, you will be more likely to buy a nice item for a fair price from a reliable seller.

How do I get started on eBay?

If you just want to take a look around eBay to see the types of things available on auctions you can do so anonymously. However, if you want to buy or sell, you will need to register for an account. To create an account, simply click on the “register” link near the top of eBay’s home page and follow the instructions. If you access eBay on a public computer, be sure to sign out when you’re finished (there’s a link near the top of the page). If you don’t, someone could place a bid using your account information.

How can I become a better eBay buyer?

Tip 1: Find out what the item is worth.

A price comparison tool like http://www.pricegrabber.com will allow you to check current prices for an item from several online vendors. Keep in mind that items purchased through eBay may not carry manufacturer’s warranties, so reduce your bid to account for this factor. But how can you find the price of an item no longer being produced? Simply check eBay for winning bid amounts of recent auctions: Click on the “advanced search” link found directly beneath the search box on the upper right-hand corner of the site. Type in the name and/or model number of the merchandise in the search box. Check the “completed listings only” box and press the search button. You may need to experiment with abbreviations or alternate spellings to find what you’re looking for. If the item has been sold in recent weeks, the final price of that auction will appear on the search results page. This can give you some idea of what the item is worth. Many variables contribute to a used item’s value, such as physical condition, whether original packaging is available, and whether the owner’s manual is included.

Tip 2: Decide in advance the maximum you’re willing to pay.

As the end of the auction draws near, your desire to win may overwhelm your common sense and cause you to bid more than you should. Set a realistic maximum and don’t exceed it in the heat of the moment.

Tip 3: Investigate the seller.

eBay has a feedback system which allows buyers and sellers to evaluate their degree of satisfaction with the other party. These feedback scores are displayed on the item page next to the seller’s user name. The number in parentheses is the total number of transactions which received positive feedback. The percentage of auctions receiving positive ratings is also shown. The system is flawed (e.g., it does not differentiate between feedback from buyers vs. sellers), but it can help to provide some idea of the trustworthiness of the other party.

Tip 4: Watch out for high shipping costs.

Some sellers try to increase their profits by charging an arm and a leg for shipping and handling. When comparing prices across auctions, make sure to factor in shipping costs before you place your bid. This information is usually provided in the auction description.

Tip 5: Don’t bid too early.

It’s usually best to bid relatively late in the game. If you bid too early, you risk running up the price. In fact, it’s wise to place your bid within the last couple of minutes of the auction’s closing. eBay’s system will automatically bid on your behalf up to the maximum you specify.

Tip 6: Consider using a “bid sniping” service.

Veteran eBay buyers will sometimes bid at the last possible moment to increase their chances of winning. This technique, called “bid sniping,” uses a commercial service to place a maximum bid on your behalf within four or five seconds of the auction’s end. It helps to win auctions because rival bidders don’t have enough time to increase their bid in response. Many companies provide auction sniping services for a fee, including http:/www.auctionsniper.com, http://www.bidnapper.com and http://www.auctionstealer.com. Incidentally, eBay has not spoken out against the use of auction sniping services.

Tip 7: Pay promptly.

As a buyer, you can enhance your reputation by paying promptly in the form specified in the auction (for example, a money order). It’s perfectly acceptable to ask if the seller will accept an alternate form of payment prior to bidding, but don't expect to have any luck after the fact. Final Thoughts If you haven’t tried eBay yet, you probably have no idea of the incredible diversity of items available. You can find everything from sewing patterns to construction tools to ostrich jerky and librarian action figures. Good buys abound for the savvy bidder.

Resources

• Collier, Marsha. eBay for dummies (004.678 COL)
• Collier, Marsha. eBay Bargain Shopping for Dummies (004.678 EBAY)
• Griffith, Jim. The Official eBay Bible (004.678 EBAY)
• Karp, David A. eBay Hacks (004.678 KAR)

Posted by moetting at 2:04 PM | Comments (0)