Getting Smart About Buying Online

Online auction houses can be a great place for those interested in saving time, money, and hassle when it comes to finding that perfect item, but it can also be a place of sheer hell if you become a victim of fraud.  Sure it's fun and thrilling to win the purchase but who are you bidding against really?  At times you could be bidding against bogus bidders recruited for the benefit of the seller.  Sure, that gorgeous hand bag you've been salivating over looks really nice in those pictures but are those pictures the real deal?  Is a sellers rating really an accurate depiction of the person you are buying from?  Sometimes not.  Here's a few tips to aid you on your way to a truly successful and satisfying buying experience. 

• Understand how the auction works. Some online auctions sites can't guarantee the sellers will keep their promise, or verify that the merchandise is described accurately or even exists.  Look for credible sites.
• Check out the seller before you bid.  Positive ratings can be pumped up by the seller who "plants" comments or can be lowered by competitors.
• Be careful if the seller is a private individual.  Many consumer protection laws don't apply to personal sales.
• Be especially cautious when dealing with sellers in other countries.  Physical distance, different legal systems, and other factors could interfere with a smooth sale.
• Beware of “shills.”  Sellers can raise the price artificially by recruiting bogus bidders which is illegal.
• Get the name and contact information of the seller.  Having the name, location, address, and even phone number can be very helpful when following up after a sale.  Don't do business with someone who refuses to give their personal information.
• Be wary of claims about collectibles and other expensive items.  A good tip is to print out and save any photos and descriptions of the merchandise for future claims.
• Ask about delivery, returns, warranties and service before you pay.  Get a definite delivery time, ask for insurance, and inquire about warranties (especially on electronics).
• Look for information on the auction site about insurance.  Some auction sites provide insurance up to a certain amount, others use third-party insurers.  Make sure to read the fine print.
• Pay by credit card.  By using a credit card, federal law will protect you in case the merchandise was never delivered.  By using an intermediary service ask what happens in case something goes wrong. 
• Look for bonded sellers.  Some sellers can be bonded by the auction site who has researched their business background and credit history and will guarantee your money back if your purchase wasn't fulfilled.
• Consider using an escrow service for expensive purchases that aren’t covered by insurance or bonding.  An escrow service takes your payment and forwards it to the seller once you confirm your satisfactory delivery, for just a small fee.
• Try mediation to resolve disputes.  Some sites provide a mediation service for disputes among sellers and buyers.  All problems aren't due to fraud, some can be just a misunderstanding or failure to hold up their side of the bargain in a timely manner.
• Inform auction sites about suspected fraud.  Auction sites will sometimes suspend or remove sellers if there are enough claims about fraudulent activities. 

As always, happy (and safe) bidding!

http://www.fraud.org/tips/internet/onlineauctions.htm

Tax Tips for Online Auctions

If you start to gain some money in Online Auctions, and the money is just about the amount you would earn in an actual garage yard sale, then you do not have to report the sale that you've earned. Basically, if you paid more for the items you sold then you don't have to report your sales. Pretty cool, pretty cool. You can also deduct business expenses if you are operating a viable online auction seller business. If you have some appreciated assets such as art, collectibles, antiques, ect. and the sales pricing is more than the cost you are selling at, then you would have a reportable gain which would include business income or capital gains. Also, if you are selling business assets or if you are closing your business then you might have capital gains, ordinary gains or depreciation recaptures to report. Just some tips you might need to know if you want to do business in online auctions.

http://www.irs.gov/businesses/small/industries/article/0,,id=202939,00.html

Auction Addiction

It seems that with any new online service, what is meant to be enjoyable, fun, and harmless can turn into a dangerous addiction if the user is not careful. The creation of eBay and other online auctions was followed swiftly by people becoming hooked on bidding..... This comes from being so obsessed with "winning" whatever product you're bidding on, it becomes overwhelming, consuming your life.

So, how do your know if you're addicted to online auctions? Here are some questions to consider:

• Do you need to bid with increasing amounts of money in order to achieve the desired excitement?
• Are you preoccupied with auction houses (thinking about being online when offline, anticipating your next online session)?
• Have you lied to friends and family members to conceal extent of your online bidding?
• Do you feel restless or irritable when attempting to cut down or stop online bidding?
• Have you made repeated unsuccessful efforts to control, cut back, or stop online bidding?
• Do you use auction houses as a way of escaping from problems or relieve feelings of helplessness, guilt, anxiety, or depression?
• Have you jeopardized or lost a significant relationship, job, or educational or career opportunity because of online bidding?
• Have you committed illegal acts such as forgery, fraud, theft, or embezzlement to finance online activities?

Source: http://www.netaddiction.com/index.php?option=com_content&view=article&id=88%3Aebay&catid=42%3Arecovery-resources&Itemid=86


This epidemic is a growing problem and it is only continuing to grow as time goes on and more and more unique and potentially more addicting online auction sites emerge in the e-commerce world.

In my opinion, I think that penny auction sites are the most addictive of them all because it is so easy to keep bidding and bidding and bidding and the dollar amounts start so small that it may seem harmless, so the money keeps increasing and increasing without notice. Not only that, but I think the shorter auction timers may add to the addiction. Being that the auction may only last 10-20 seconds after each bid, the fast pace inevitably increases the adrenaline rush more and more as time goes by.

On all auction sites, no matter what the time, addiction is highly possible if you're not careful especially since they are now available anytime, anywhere, considering the ease of access we enjoy with Web 2.0 and WiFi networks. It is now possible to connect to the Internet anywhere, whether on a computer at home, school, or work, not to mention on our fancy smartphones.

So the real question... Is it really worth it?

Outrageous Auctions on Ebay

How would you like to spend eternity with a super star?
The crypt above Marilyn Monroe's grave sold for $4.6 million dollars on eBay














How much would you pay for the Holy image of Virgin Mary on a piece of toast?
Someone bought this anointed piece of bread for $28,000



These items, of course, are quite absurd. Personally, I would not be very interested in being buried above Marilyn Monroe, or acquiring a Holy piece of bread. It's no problem if you do, as long as you are willing to pay.

Nevertheless, I do think that these type of auctions are quite the publicity stunts that certainly bring a lot of attention to eBay. These auctions are becoming a sort of trend that turn into free advertisements and free marketing to eBay's name and brand.

So why not enjoy them as a third party viewer? Why shouldn't eBay let a piece of toast sell for $28,000 dollars on their site? If there's someone hungry enough for some Eucharist bread, they'll pay for it. And all parties benefit... unless the bread gets moldy.

http://www.time.com/time/specials/packages/article/0,28804,1918340_1918344_1918380,00.html