Online Auctions

Online auctions have revolutionised the ways consumers can access products they would otherwise go without. Designer clothes, high tech electrical devices, kitchen appliances, fitness equipment, and cosmetics: literally every consumer good can be found through online auctions – and best of all – often at bargain prices.

Online auction sites are based on a simple process where users will register accounts and can be sellers, buyers or both. Sometimes companies will run their own online store through auction websites, but the majority of sellers are individuals auctioning off their own goods.

The most popular online auction site by far is eBay, where sellers are required to register and pay a fee each time they auction an item. Sellers will usually list a reserve price, or minimum amount that they are willing to consider, and a time limit for the auction.

The best sellers will provide a detailed description of the item for sale, authentic photographs (rather than stock photos) and are willing to respond to any questions about the item. At the end of the auction, the highest bid wins and the seller establishes contact to discuss payment, shipping costs, the refund policy and sometimes a follow-up service.

When an auction ends and the highest bidder is notified of their win, the seller usually specifies the payment options through a third party payment organisation, such as PayPal. In some cases, items of substantial value are subject to an escrow service, which holds they buyer’s money until the buyer receives the item and is satisfied with it. Not all auction sites offer this escrow service.

Unfortunately, online auctions can attract nefarious characters from time to time. Sometimes this will involve a dodgy product being sent out, or no product sent out at all even after payment has been received. Online auction sites do have policies and procedures to deal with such situations and protect buyers from being scammed.