Buying and Selling Online

Online auctions are a useful way of selling things you don't want and buying items at less than the usual price. Companies as well as individuals now sell items this way. As goods are not always in best condition and fraudsters are now using these services, here are points to watch. (While much of this 2005 information may remain true, there may have been some changes since then.)

How it works

• Sellers put details of goods on the site. The person with the highest bid by the end of the auction must buy the item and the seller must sell it to them. Sellers pay a fee (usually between 15p and £2) for listing the item as well as a percentage (up to 5.25%) of the selling price.
• Most people set up an online PayPal account; buyers pay into it with their credit or debit card, so the seller knows the money is there before sending out the goods.
• If the item is sold by a retailer, you have your usual consumer rights, so goods must be of a satisfactory quality and fit for their purpose.
• If the item is sold by a private seller, those consumer rights do not apply. The item must match the description but if the item breaks down you can't claim a refund. 
• Most sites offer protection if goods never arrive.
• You can sell or buy a more limited range of items for a fixed price at www.amazon.co.uk. Amszon emails you when someone agrees to buy, then collects your earnings and deposits them in your bank account. There is a listing fee and you pay a percentage of what you make.

Buying safely

• Read description carefully, check postage costs and how seller wants to be paid.
• You cannot back out once you have bid, so check it is a bargain. Look for same item elsewhere on site or price comparison sites.
• Check buyer feedback for this seller, so you don't buy from anyone with a poor track record.
• Email the seller of an item to check any details before you make a bid.
• Decide on your top limit and enter this on the site as well as your bid. The seller and other buyers won't be aware of this but the auction site will automatically increase your bid each time someone outbids you, up to that limit.
• Use a credit card to pay for anything that costs more than £100 - the card company is then equally liable if something goes wrong.
• For expensive items (say, over £500) consider using an escrow service (e.g. www.escrow.com) which means your money won't be passed to the seller until you have received the goods.
• Don't make payments except through the auction site, otherwise you will lose all protection. Fraudsters' tricks include emailing bidders directly, claiming to be a seller whose buyer has dropped out, then pocketing the money but never sending the requested goods.
• Always give feedback about the seller of the site.

Selling successfully

• For valuable items set a reserve price. On eBay this must be at least £50 (2005). If bids don't reach this amount you are not forced to sell for less.
• Don't send goods until you've received payment, unless you are using an escrow service (where the payment is handled by a third party such as www.escrow.com).
• Give feedback about your buyer on the website.

Source: 'How to bag a better bargain online' in Good Housekeeping, September 2005