Is the future bleak for eBay drop off stores?

Back in 2002 the first eBay drop off stores began to appear on the West Coast. Auction Drop was in the forefront of this move and attracted millions of dollars of venture capital. There plan was simple, they would open a nationwide chain of stores were people with items to sell could drop them off and Auction Drop would list them on their behalf on eBay.

The model assumed that there were enough clients who would not or could not list an item on eBay for them selves. It sounded like a great idea and drop off stores began springing up not only across the USA but Internationally in Canada, Germany, England, Holland and Australia. Auction Drop quickly had to rethink its business model when in June 2004 it announced it had partnered with UPS. This would allow consumers to drop off their items at any of over 3,000 UPS locations. By early last year Auction Drop had closed 4 of their 5 stores. Since then there have been closures amongst other drop off store companies and the expected boom in consignment selling just does not seem to have happened.

No doubt commission fees in the region of 30% or higher have deterred some consumers. And did anyone ever really ask the question, is there a big enough market of people who could not be bothered to list for themselves. Even if there was, would they be prepared to pay someone else a big wad to do it for them. Currently very few of the stand-alone drop off stores appear to be making very much money and many are closing down. One company that does on the face of it appear to be growing is I-soldit. They currently have a turnover of over $20 million through their 140 franchised outlets. This represents an average per store turnover of $150,000, which with a 30% commission would only represent a gross profit of $45,000 before costs. Not a great amount when you consider the investment required for the franchise.

Of course the truth could be that eBay have developed such a simple system for listing items for sale that very few people need to use the drop off stores services. It is probably quicker to sit at your computer and list the item yourself than to go out and take it to a store. There is also little evidence that drop off stores get any higher prices than most individuals and definitely not 30% more. So if it does not save you time or money what is the point?
And it would seem the answer for many is that there isn’t one.

EBAY AUCTION TIPS

Buying things in an auction is the most affordable way to obtain the item a person wishes to have. That is why even the Internet had provided such sites like eBay in order to provide more affordable items than what the typical market has to offer.

Best of all, net auctions sites like eBay can provide a number of potential profits for the small time entrepreneurs who want to, in some or way or another, earn extra income.

Through eBay, sellers do not have to build a site just to sell. In fact, there's no investment capital needed in order to start the business.

There just simple things a seller has to do in order to come up with a good sale. Here are some things the seller has to know before putting up a sale:

1. The Market Value

It's a must for every seller to do some homework first regarding the price of the item in the market. This is to enable the seller to come up with a price that is reasonable enough to compensate the purchasing power of the buyer and the much-needed profit of the seller as well.

The seller may also look for the other sites that offer the same item so as to give him or her an insight on how he or she should stipulate the price.

2. The item description.

It is important for a seller to come up with a detailed description of the item. That is, the seller should be honest enough to put everything that depicts the items actual state and appearance. It should be based more on information and not just propaganda.

3. The photograph.

Pictures are enough to sell the item. But it takes skill to get the right angle and the perfect aura of the item so as to illustrate the best point of view. If the item is clear enough for the buyer to see its specifications, chances are, the buyer will purchase it.

4. The seller's requirements.

It is an essential thing for the seller to state his or her payment requirements. It's best for the sellers to include everything especially the additional charges that will apply like shipping fees.

5. The customer service.

In order for the seller to close a sale, he or she must be well adept on customer service. That is, the seller should know that it is important to reply on a buyer's inquiry, to answer whenever there is confusion, and to do some follow-ups even if the transaction is finished.

As they say, a happy buyer makes a happy seller.

TO SELL OR NOT TO SELL

Since its inception, eBay seemed to be godsend entity to many especially those who want to find a lucrative way of earning a living. A lot of people contend that it is only with eBay that they were able to supplement their finances and extra necessities.

But the question of the majority still remains. Do people really need to sell something first before they can profit from eBay?

The answer is, undeniably, yes! Here some facts about eBay to support the answer:

The nature of eBay is focused on one thing: ONLINE MARKETING.

The concept behind eBay is the fact that it is an auction website. Therefore, to gain profit in a site like eBay is to sell something. It involves monetary transactions and deals, a niche market, and some strategies that can be commonly found in a typical market site.

Hence, a person that has no intentions of selling something on eBay does not actually have any business on eBay.

However, others may contend that buying a quality at the same time affordable product can also be considered as a profit. But nevertheless, taking a closer look at what profit really means, all of these boils down to the fact that whoever earns money benefits more.

Everything is a commodity.

Nowadays, everything seems to be a commodity, from mobile phones to even ideas. With an increasing rate on financial crisis, everybody seems to be finding ways how to earn a living. This goes to show why there are people who sell even the weirdest thing on eBay.

Some may assert that these things may not be true at all. But the question is, what if it is, indeed, true? What if there is really somebody out there who is in dire need of money and that there is nothing that he or she can trade but his or her own virginity?

These things may seem like too nuisance and may seem cheaper than what they had bargain for, but when necessities butts in, it's down to a now or never battle in life.

Indeed, the realities of life are clearly manifested on the kind of transactions that goes on in eBay. In fact, what eBay has on its context is the same as what goes on in real life. Like eBay, life is like an auction, there are those who win and there are those who lose.

With all these facts, the concept of whether a person has to sell something first just to profit from eBay breaks down to two realities in life: money, thus, makes the world go round, and that profit is claimed where there is money.

BIDDING ON EBAY: WHEN IT PAYS TO KNOW THE RULES

With the dawn of the new era of technology, the Internet has evolved in such haste that people find shopping online an alternative. That's why eBay is considered as a viable place to bid on things that they want to acquire.

The nature of eBay is based on the bidding concept of shopping. People need to bid on the item first before they can have the rights to purchase it. To make online shopping a lot more convenient, eBay uses an automated bidding system that facilitates the auction. The bottom line is that the highest bidder gets the chance to buy the item.

Shopping on eBay is relatively easier than when doing it on a traditional market. However, it could be a little more complicated especially if the bidder doesn't know how to do it properly.

Hence, it's a must for every bidder to know the process and equip himself with the principle of creative bidding.

The first consideration when bidding on eBay is the item itself. Bidders should be aware of its composition from the price down to its technical details. This is to assure themselves that what they are trying to obtain is worthy of their money.

Bidders should also take note of the descriptive details of the item. They should assess themselves if they can tolerate any blemish on the item such as scratches, slight cracks, or dents.

It's also a must for every bidder to do a little background investigation on the seller based on the seller's feedbacks, demographic profile, and the other items that were already sold on his or her behalf, if there's any. This is to ensure the buyer if it's safe enough to proceed with the bidding process.

Consequently, the potential buyer should contemplate on the item first before bidding. The buyer should make it a point that he or she is ready to purchase the item in case he won the bid. This is because the bid is already deemed as a contract that will bind the buyer to an agreement that he or she would have to buy the item in the event that they got the highest bid.

The buyer may also opt to wait until the small hours of the listing period before bidding, that is, if he or she is really determined to get the product.

Bidding on eBay could be an exhilarating activity while shopping online; yet, it could also be a buyer's worst nightmare if done inappropriately. So, it's a must that a buyer takes bidding on eBay a serious matter to avoid any trouble.

How Much Is It Worth? Estimating Your Item’s Value for Sale on eBay

Proper pricing of items to be listed for sale on eBay is one of the most important aspects of generating interest in one’s auction listing.

If the price is too high, interest will be low, and the possibility of a sale decreases.

If the price is too low, the seller generates enormous traffic, yet the final bid might be too low to satisfy the seller’s need for a profit.

The following are steps that will aid in that process.

Step 1: How Much Was this Item Originally Worth

First of all, one must find out how much the item was when it was bought. This helps the seller set realistic goals as to how much he will expect to profit from that item.

The seller must remember that the going price for that item nowadays will be different from its original price. And depending on the demand for that item, he may get a price that is better, or worse than the original price.

The seller must also come to an acceptance of the fact that the buying power of today’s $1 is different from that of ten years ago.

Step 2: Do a Little Research

Sellers should research on the current price of similar items. This gives them a good standard as to how much they should price their wares. Searching eBay for successful auctions of similar wares is the best way to do this.

Step 2: How Much Has the Item Depreciated?

The seller must check the item for damages and other irregularities from a mint conditioned item of the same kind. He must then deduct a reasonable amount from his asking price. Wear and tear tends to bring down the price of an item considerably. It is wise to make sure the items are repaired, or spruced up before being auctioned.

Step 3: Start It a Little Lower than Usual

It is wise to start an auction a step or two (or even three) lower than a sellers intended price. This generates interest in the item. It may be hard to believe, but auctions that start lower than its intended price actually have a better chance at overshooting that intended price.

Professional opinions are available if the seller is in doubt of the value of his or her item. Third party appraisal companies help in this regard. A list of such is available at the Authentication & Grading link under Protection and Authentication on eBay.

THE POWER OF WORDS

It is a known fact that a business could never be successful without the aid of advertising. In fact, it is considered as the lifeblood of almost all kinds of businesses. That's why sellers and entrepreneur wannabes on eBay understand the impact of an effective advertising technique on their items listing.

Basically, the sale of an item on eBay is dependent on the so-called eBay keyword program. This program asserts the fact that the probability of an item to be sold is based on the keyword used by the seller.

The eBay keyword program suggests that the maximum number of keywords to be used in an eBay ad is 100, the least is 50. This is because the essence of the description of the product or the ability of the ad to promote the item against a thousand similar items is lessened.

This does not necessarily mean that the sellers will also limit the amount of keywords that they will use. The eBay keyword program further suggests that the number of keywords should be congruent to the identity of the product. That is, it should be very specific even down to the last details of the product.

For example, one seller may make his or her descriptive title and ad using the word "mobile phones". Then, another seller posts the same item but used the words "Sony Ericsson mobile phones". And lastly, another seller does the same but used the words "Sony Ericsson k700i". Applying the keyword principle, the third seller will most likely gain more exposure than the other two, such that when a person search for a Sony Ericsson k700i, that person will most likely be lead to the third seller's listing.

Choosing the best category for the product is another effective advertising technique.

There are those online shoppers who search items on the category first. The reason behind this is that they don't have any specific product in mind. For example, a buyer may be looking for a mobile phone but doesn't know what brand to have. So, it's a must that the seller places his or her item in a category that is active or is frequented by most buyers.

But the most important advertising technique of all when selling an item on eBay is to create a sales pitch that comes from the heart. Clichéd as it may seem but, in reality, it is the basic concept of selling. A good seller believes on the product that he or she is selling, other wise, he will have a hard time convincing people of he personally doesn't accept it as true.

EBay announce fee restructuring for Store owners

EBay have announced changes to their pricing and commission structure for ebay stores. The good news is that the listing fee is going to be lowered from 5p to 3p per item. However, the final valuation fees for items sold for up to £600 will rise.

For sales up to £29.99 the fee will increase from 5.25% to 6.75% . For items sold in the price range of £30 to £599.99 the fee rises from 3.25% to 3.75% . Above this the fee of 1.75% remains unchanged. The monthly subscription fees also remain unchanged. Full details of the new prices can be found at
http://pages.ebay.co.uk/storefronts/importantinfo/

One much welcomed change is that eBay are going to increase the visibility of shop inventory by adding the store items to eBay,s search engine. Further improvements in the shops functionality are promised in the coming months.
For more details visit: http://www2.ebay.com/aw/uk/200601190402432.html

eBay University 2006

EBay have just announced the dates for their next 3 eBay University events.
This weekend there is an event in Bristol which is a “Beyond Basics “ course. There will also be a similar day held in Manchester on the 18th February. In March both a “Beyond Basics” and a “Top Sellers Course” on 11th March in Central London.

This year they are offering two different courses, “Beyond Basics” and a “Top Sellers Course”. The Bristol and Manchester events will both be “Beyond Basics” while the London event will be offering both courses. There will be further eBay University events at these and other venues during the coming year.

The Top Seller University is a two stream course aimed at serious eBay sellers. Attendees can choose from two different classes that run concurrently. The first stream is presented in association with the Institute of Business Advisors (IBA) and offers delegates the opportunity to gain the foundation of knowledge required to turn your eBay trading into the beginnings of a fully fledged business, covering diverse business subjects such as taking your first steps in business, Tax and VAT and writing your first business plan.

The first course is called 'Beyond the Basics' and is aimed at those who have mastered the 'basics' of selling and would like to move their eBay selling onto the next level.

The course consists of three basic modules; marketing, scaling and managing your sales on eBay. The second stream is entitled 'Advanced eBay Skills' and offers delegates the opportunity to learn about eBay specific topics and skills in greater depth. Our experts will cover a diverse range of subjects aimed at taking your eBaying to the next level. Topics will include search and email marketing; Maximising the opportunity of your eBay shop and PayPal. In addition you can hear from third party tool providers, such as MarketWorks and Channel Advisor, to allow you to judge how their products maybe able to help you develop your sales.

Delegate attending the Top Seller university can move freely between the Business Skills and Advanced eBay streams - picking the classes they wish to attend. Taking place in smaller groups than the Beyond the Basics course, delegates should also be able to benefit from greater interaction between delegates and the tutor alike.

Delegates attending the Beyond the Basics course cannot move between the two courses if offered at the same location. For more details and to book for any of these events visit
http://pages.ebay.co.uk/university/

How To Sell Your Crafts On Ebay

By James Dillehay

Artists, craftspeople and photographers are successfully selling their wares everyday on the online auction site, eBay. According to a recent analysis of eBay sales, a crafts-related item is sold every nine seconds, a scrapbook item is sold every minute, and 40 cross-stitch items sell in an hour on eBay. Sales of craft items on eBay have grown almost 60 percent in the past year, according to TheBidFloor.com.

But, at the same time, many would be sellers are listing their pieces for sale on auctions and getting no bids, concluding that eBay just doesn't work.

Here are some tips from James Dillehay, craft artist, eBay seller and author of the new book, "Sell Your Crafts on eBay" (Warm Snow Publishers), on how to profitably sell your wares online:

1. A word's spelling impacts an item's profitability. For example, the word 'handmade,' spelled as one word, was part of 2,233 auction titles with an average closing price of $16.29. However, auction titles that included 'hand made' as two words were found in 1,358 listings, but with an average auction closing price higher, at $27.81, or $11.52 more profit per item.

2. Go to eBay.com and find the search box. Type in the word or phrase that describes your art or craft item. Then scroll down the links on the left side of the page and click on the link for "completed items." Here, you'll be able to see the demand for this type of product. Do searches for your items every two to three weeks to chart buying patterns.

3. Find out how much people are willing to pay for your wares. Click on the link that says "highest price." This will give you a list of completed auctions from highest priced items to lowest priced ones. You want to know what people are willing to pay for items like yours. If you can't make and sell your product for a profit, eBay might not be your marketplace.

4. Determine how much money you'll make on your product. To determine your profitability, use the cost of your materials plus the cost of your labor plus the cost of your selling price, which should be the minimum price to recover your expenses. If it takes you eight hours to make a piece of jewelry and the highest priced similar item sells on eBay for $26, you won't make a profit.

5. Look at the elements of successful sellers of products that are similar to yours. Examine their winning auction titles. Observe how much detail they use to describe their item. See if the seller used any of eBay's special features such as gallery photos or a bold, featured listing. Evaluate the starting price, starting day of the week, and duration of winning auctions.

About the Author: James Dillehay is a 20 year crafts veteran and nationally recognized expert on craft business. Author of eight books, his articles have helped readers of Family Circle, Better Homes & Gardens,Country Almanac, Working Mothers, The Crafts Report,Sunshine Artist, and many other magazines. For more information, see http://www.craftmarketer.com. For more tips on how to sell your craft items on eBay, consult a resource book like "Sell Your Crafts on eBay," by James Dillehay. It offers-more than 200 easy-to-learn tactics and tips that help sell art, craft and theme-related items for a profit on eBay and on other online auction Web sites.

Source: www.isnare.com

Beware, There Are A Lot Of Crooks On Ebay

By Steve Hill

I hope you have not had a negative experience on ebay. I was very much enjoying the site until one day, some freak tried to steal nearly £200 from selling me an item which did not exist. This article explains what happened and also the advice the police gave to me.

As I have already mentioned I was having lots of fun buying and selling on Ebay for a number of months without any problems at all. I regularly sold second hand mobile phones and was doing very well for myself. If I ever bought anything that cost over £100, I would offer to meet the seller somewhere, normally just off the motorway. I pulled off what I believed was some good deals and also managed to offload some of my unwanted items which I either had no interest in anymore or that I had no longer a need for.

Unfortunately all good things have to come to an end and it certainly did with ebay.

One particular morning I was looking to purchase another second hand mobile phone, which I would then re-sell on. There was an advert for a buy it now phone with the asking price low but not extremely low.

There was a mobile number to phone if I had any questions. I decided to phone the number, his name was Tony and I asked him the general type questions. He sounded and seemed really nice, however stated that he was unable to meet me as he was unable to drive as he had not past his test. The alarm bells should have already started to ring, but me being a bit stupid they didn't.

His house was a long way from where I lived and reluctantly I agreed to pay via a bank transfer. He assured me he would post the phone, that very day via Royal Mail Special Delivery to arrive by 11am the next morning. He seemed very genuine, they always do your thinking and that was that.

Next morning have a guess what arrived, yes nothing at all, nor the next day, nor the next.

I tried e-mailing him, texting and ringing his mobile phone, guess what, there was no reply.

I realised what a fool I had been, however decided to go to the police. They were very helpful and half an hour later I had a crime number however was warned that it was very unlikely I would ever see a phone or recieve a refund of my money which was £170. The police advised me to be very careful as they regularly have complaints from people who have been defrauded on ebay, I was not alone!

Outside the police station I sent Tony a text with the police crime number. To my shock he phoned me straight away swearing at me but eventually agreed to refund me the money, if I stopped the police action against him.

I was very lucky, I am sure many other people as the police stated, never get their money back.

About the Author: Stephen Hill has a number of websites including: http://www.arthritis-specialist.com http://www.std-symptom.co.uk http://www.natural-health-cure.co.uk

Source: www.isnare.com

The Top Ten Ebay Buyer Personalities!

By Joe Clare

In my years of selling on eBay I have come across all sorts of people. For the most part these people have been very nice and easy to deal with. Having said that, there are always a small percentage, like in any business online or offline, who you'll have some degree of problem with. As explained in my book "eBay Marketing Wholesale SourcePak" you will need to be as polite as you possibly can and have a little patience when dealing with these people.

Below you will find my Top Ten eBay Buyer Personalities and how to handle them.

10 - The Manipulator
There will be times when you have an auction end with no bids. When this happens watch out for the Manipulator. This is an individual who will email you once you auction ends wanting to purchase your item off eBay at a ridiculously low price. He/she will often try to manipulate you into believing the product will not sell but he/she will be glad to take it off your hands. Forget about them! Do Not sell the item to them. Instead relist the item for auction on eBay with a new headline. If he/she wants it bad enough, they will have to get the item through your auction. And trust me 99% of the time your item will sell.

9 - The Impatient Buyer
This is someone who has won your auction today and is wondering why it wasn't shipped yesterday. This individual wants what was purchased fast, real fast. Just have patience, be polite and explain your shipping process to him/her. Getting the product out quickly with a thank you note for purchasing will give you a happy customer.

8 - The Disappointed Buyer
There are some people you just can not please, not even if you were to stand on your head. They will be disappointed no matter what you do. Sometimes these people can be down right rude and take up a lot of your time. Learn to recognize this type of person and don't get caught up in an on slot of emails. Remember that time is money, and once you have done all you can do to rectify their problem move on. If the emails continue simply ignore them.

7 - The Invisible Buyer
This is someone who has won your auction but you never hear from them. Ever! They pay you right on time without any problems. So you send the product they won off to them. And that's it! They do not leave feedback, and do not return any emails. They just disappear into thin air. If you send a couple of follow up emails asking if they received their item and requesting positive feedback and you get no response, just forget them and move on.

6 - The Interrogator
This individual could drive you crazy. It's not their fault, they just have questions. Lots of Questions! For these people even if every question imaginable is answered in your auction description, they'll still manage to find a reason to email you a question. Be weary of this type of individual they can, and will waste a lot of your time if you let them. On your first email to them be polite answer their question then refer them back to your auction description telling them all the answers are there. Suggest they read it again. Don't get caught up in email after email. Always remember that time is money, and if you've done your auction description correctly there should be no questions left to ask. Your auction surfer should be ready to make a bid.

5 - The Late Payer
This customer has no clue about deadlines and they really don't seem to care about them either. Their attitude is you'll get paid when I am ready to pay you. You will need to set guidelines for when payment is due. If payment is not received you may choose to give your buyer one extension. Be specific giving him/her a date as to when the balance is due. Also tell them if payment is not received by that date you will have no other choice but to relist the item for auction. Sometimes a month or so down the road you'll end up getting a check in the mail from this person with a note as to why they were late. Simply return the payment with an explanation that the item was re-listed as he/she failed to meet the payment deadline and it has been sold to someone else.

4 - The Deadbeat
There is no buyer more irritating than the one who is always telling you the check is in the mail. Of course the check never arrives. Unfortunately there is not much you can do about this. Like above give them a deadline and if they don't make it relist the item for auction again.

3 - The "I'm Sooo Confused" Buyer
This customer does want to buy from you. Really, they do! If they could only figure out how! How to bid, how to pay, how to... All this high tech computer stuff is just way to confusing for them. Have patience and be polite. Explain what they should do next. If you find no matter how you explain things it just doesn't register with them, suggest they read over eBay's tutorials. Remember your time is money and you can only spend so much time with any potential customer before you must move on.

2 - The Spender
This individual can spend a lot of money with you. And often will return as a repeat buyer usually purchasing a little of everything you have up for auction. This person will also spend $100.00 in merchandise in order to save $10.00 on shipping. Bless him/her!

1 - The Perfect Customer
This individual is simply a Happy Person. He/she has won your auction and they are just ecstatic about it. The great thing about this type of buyer is if you run into a problem they are always understanding and easy to deal with. If looked after correctly, very often these people will become a customer for life. Now, don't we wish all customers were like this.

So, there you have it. The Top Ten eBay Buyer Personalities. If you already sell on eBay I'm sure you will recognize some of these personality traits in your own customers. If you're just getting started with your eBay Auction Business no doubt you'll be running into these people soon. Whatever personality your day brings you, always be patience, polite and just have fun with it.

Happy Selling!
Joe Clare

About the Author: Joe Clare is a successful eMarketer and Author. He has written numerous articles on how to make money on eBay. Check out his Articles, Hot Tips and Free Auction Mini Course and discover for yourself, how you can make a Serious Income with Online Auctions. http://www.ebooksnsoftware.com

Source: www.isnare.com

Keeping an Eye on the Big Guys

by Diane Hughes

If there's something you've got to keep an eye on on the internet, it's the big guys. Their movements have ripples that reach to every corner. When Amazon thought of the idea of having other sites reselling their products, they changed internet direct marketing forever.

Some caught the wave and surfed to the top, others are still wondering what went wrong. There are some ripples being made as we speak. eBay in planning to gobble up Shopping.com with classifieds becoming a strong point in the eBay strategy. And with this new acquisition, millions of customers will certainly buy or sell through eBay. If you buy or sell on the internet, you have to watch eBay... great for price reference; many websites owe their entire income to eBay. If you're not one of them, you should give this some consideration. It seems the "eBay way" is here to stay with their endless online promotion. Many people don't even own a website and thanks to this way of selling, they are making pretty good money from their homes. Have you been tweaking and putting more and more gizmos onto your site? Well, sometimes you'll have a better response if you do exactly the opposite. Any marketing expert will tell you that your site must look professional but plain -- and this is what European mobile phone companies are doing and making big profits in the process! What's chic now is low-tech cellphones targeted for people who want to use their phones to... yes, you guessed it -- talk! That's right -- there are a lot of people who don't care about all the new features the new cellphones have and they're trading in their hi-tech toys for simple-to-use devices. This "just in" from Current Analysis Inc. And this is great news because I have a whole drawer filled with old brick cellphones... finally my ecological conscience will pay off -- maybe an auction on eBay... :) Skype is also making quite a big of a hype, becoming the popular choice of millions. VoIP (Voice over Internet Protocol) is sure to be involved in a lot of online businesses. The visitors will now not only type questions, they will ask them verbally and listen to a human respond to their questions -- making the internet much warmer. PayPal has reduced the the payment regulations; this will be big for all those web businesses that see the large opportunity of allowing visitors small payments. Ringtones, music downloads, articles with valuable content, greeting cards, pictures, donations, etc. You name it, it can now be sold. And who could refuse to give just some measly pennies? Micropayments can become a big source of income, especially if your website receives a lot of visitors that you have not figured out how to turn into buyers. If you think this is a good idea you can profit from, then why don't you chip in a couple of dollars after reading this article?

Spotting Fakes and Frauds on eBay

Fake items abound on eBay, and it takes much effort not to be duped by scammers who peddle these wares. There have been many painful stories relating how a seemingly legitimate item turned out to be either fake or defective. It is possible, however, to avoid these scams if one is careful and vigilant.

Buyers should be wary of any purchase over eBay, and should take steps to ensure the authenticity of the item and to make sure the item is in reasonable condition. Be Vigilant Buyers should take the initiative by doing plenty of background research. They must learn as much as possible about the products before bidding on them. If the seller provides pictures of an item, they should not be taken at face value. Comparison of these pictures with the real item helps in this regard. Many sellers will use pictures from manufacturers that do not represent the item they are actually selling; buyers should ask the seller for actual pictures of the item. If the seller balks, buyers should refrain from bidding. Collector’s items, autographed memorabilia, and historical artifacts are common items that are misrepresented on eBay. Authenticate Familiarize yourself with the various bodies that certify respective items. For example, reputable merchants of autographed sports memorabilia should include a COA (certificate of authenticity) from a trusted third party. Counterfeit or misrepresented items should be reported to eBay. When buying on eBay Motors, one may have an inspection service double-check if the seller is accurately representing his automobile. Look at the Feedback One should analyze the feedback rating of a seller. Analyzing feedback is another helpful exercise to prevent scams. Sellers who have an established history of credible sales are usually helpful and professional to deal with. Negative feedback should be a red flag as to whether one should pursue a trade with the person. The same thing applies for those who do not have feedback ratings at all. Buyers must be careful however, since it is possible that a scammer has hijacked an account that has positive feedback. Buyers should make sure they have read the entire product description on its eBay listing. Things to look out for are disclaimers, damages, current item condition, years of use, and others. If this information is not specified, it would do well for the buyer to contact the seller regarding such. The Price Theory If the price for an item is too good to be true, it probably is. Auctions that carry outrageously low prices should be taken sceptically.

The Sellers Dilemma on eBay

It’s obvious that eBay provides internet users with an online flea market where buyers and sellers from around the world meet to conduct trade. However, like most traders who are faced with an innovation of this sort, the first question will always be: It is safe?

The answer is yes, but devious scammers seem to be plotting daily to forward their dastardly schemes and take advantage of eBay’s power. So, what is the user’s recourse? The users of eBay must learn to gather information and take meticulous care in dealing on eBay. Only then can they be less gullible to scammers. A common consensus is that bidders are often scammed by sellers. But it is possible for things to be the other way around. Here is a list of the common problems sellers encounter and the means to handle them. Fake Escrow Services A winning bidder may request that an escrow service be used to assure both parties of a fair transaction. Unfortunately, the seller is sometimes duped into using a fake escrow system. To avoid this situation, the seller must always verify the authenticity of an escrow service. eBay recommends the use of escrow.com. If the bidder insists on his or her escrow service, chances are, that person is a scammer. Victims of this fraud find it difficult to reclaim their items. They may, however, appeal to the legal system afforded by the state they live in. They must also contact eBay regarding the matter for any assistance they may be willing to offer. Deadbeat Bidders Deadbeat bidders (a winning bidder who doesn’t pay for an item at the auction’s close) are more common on eBay. If the winner of your auction does not pay, you may leave that person a negative feedback. As for the listing fees the seller shells out, eBay lays out a four step procedure that sellers can use to potentially recover lost selling fees. If sellers complete the process to eBay’s satisfaction, they will receive a Final Value Fee credit and a re-list credit. Filing out an Unpaid Item dispute is the first step toward eBay reimbursing such fees. A person can report an unpaid item up to 45 days after an auction’s close. Trade Dispute This occurs when the seller and bidder disagree on some terms of the sale. This may also happen if there is a purported violation of any of these agreements. If communication between both parties does not help, they may consider availing of a third-party dispute resolution outfit to help. SquareTrade.com is one of these outfits that eBay recommends. An Ounce of Prevention is Worth a Pound of Cure A seller’s life may be made terrible because of the constant scamming attacks unscrupulous individuals undertake. But, with proper information and care, he or she can continue trading on eBay with relative safety.

The eBay Blacklist

The eBay business can be most likened to an online flea market. But, as with most flea markets, there is always the possibility that questionable hawkers lurk around the corners. Therefore, there must be rules in place to insure that the auctions and transactions formed through eBay are safe and legal.

Only then can a market – online or not – flourish. Certain types of items are prohibited or regulated on eBay. eBay reserves the right to terminate auctions that violate its specifications for allowed items on listings. In the case of a violation, eBay emails the bidder and the seller to notify them of the violation and to explain the need to terminate the auction. There are many eBay guidelines in-place that describe items that may not be posted for auction. They fall under three main categories: Prohibited, Questionable and Potentially Infringing. Prohibited This describes items that are not permitted on eBay. This list includes alcohol, tobacco, drugs, animals, human parts or remains, government properties, lottery tickets, and others. eBay contains a complete list of such in their policy statement. Questionable Items listed as questionable can be posted provided they follow certain conditions. For example, some adult material may be listed for auctioning only if they are posted in the Mature Audiences section of eBay. Event tickets may be sold provided that the auction closes before the actual event itself. The list also includes batteries, artifacts, food, used items, event tickets, weapons and knives, police related equipment, Freon, hazardous chemicals, offensive material, mature audiences material, international selling, and international buying among others. Potentially Infringing Items listed under this heading may be legal. However, they almost always violate copyright, trademark, and other rights. Some examples of Potentially Infringing items are: academic software, beta software, bootleg recordings, contracts and tickets, downloadable media, movie prints, OEM software, Replica and counterfeit items, and unauthorized copies. The eBay list of problem items is updated periodically and is incorporated into the User Agreement of eBay. These guidelines do not represent legal advice. It would do well to check with law enforcement agencies, a lawyer, or other legal outlets to verify the legality of a questionable item to be posted. This policy applies even if you offer to give your item away for free. As long as it is posted on eBay, it is subject to the above policy. As a final note, it is stressed that a eBay buyer is subject to liability if he or she purchases an illegal item. It is still the responsibility of the buyers and sellers to monitor the legality of their transactions since eBay is merely a facilitator in the market process.

Avoiding eBay Buying Pitfalls

As with any market, trading on eBay is not without its hassles and snags. First of all, it should be duly noted that eBay is an online market/transaction facilitator. It merely becomes a means for the buyer and the seller to meet. Because of its online nature, eBay’s auction listing provides the buyers with a wide selection of goods.

The buyers are also enabled to review the seller through the seller’s feedback rating. This helps the buyer decide whether or not to pursue the trade. The sellers on the other hand, benefit from a wider audience due to the popularity of the Internet and eBay. eBay enables them to post easily, quickly, and extensively. When eBay connects buyer and seller, the transactions truly begin…as well as the headaches. Even with the automated nature of most of today’s transactions, eBay is still built on the basic foundation of trading: trust. A good deal of trust is involved in eBay trading. The buyer has to trust that the seller is listing a legitimate item, and that he or she will deliver that item when paid. The seller, on the other hand, has to trust the buyer to pay fully and without any hidden catches. Here are a few of the problems one may encounter when using eBay. - Seller does not deliver product This is a buyer’s biggest fear. However, it is also one of the most common snags buyers encounter. Usually, when closing a deal, the seller will email purchase instructions to the buyer. This will usually include instructions for payment. The seller will then promise to have the item delivered upon receipt of payment. If the buyer, after fulfilling his or her part, does not receive the item within the agreed upon date, he or she should immediately try contacting the seller. If this proves to be fruitless, he or she should file a complaint with eBay for assistance regarding the transaction. - Seller delivers a different/defective product Sometimes the trading is smooth. Everything goes according to schedule. However, upon receipt of the item, the buyer finds out that the item is significantly different from its description on eBay. What should the buyer do about this? Good communication between the buyer and seller usually brings about a speedy and satisfying end to any trading dispute. This should always be the first step when handling a dispute. - Seller cannot be contacted for questions when closing deal Most disputes come about due to miscommunication between seller and buyer. But if the seller can not be contacted, that presents a bigger problem for the buyer – especially if that person has already fulfilled payment of the item. Contacting eBay may help to resolve this problem and they are sometimes willing to supply further information about the seller.