A lot of people use online auctions as a source of collectibles or antiques.
In these areas it's just as easy (and more common) for people to defraud
themselves through
inexperience as for a seller to defraud them.
Here are a few examples of possible ways you can get yourself in trouble, from a friend who regularly buys gems and collectibles through online auctions:
Read the descriptions carefully. Look for "trade words," or
phrases that give you a clue that the merchandise isn't what it appears
to the uninformed bidder. If a ring is sold with
the description "2 ct diamond simulant," don't bid unless you
know what "simulant" means. (It means basically "anything
that looks like a diamond.")
If there is anything in an item description that doesn't make sense to
you, or that just makes you wonder, don't brush it off. That's almost
always a valid warning sign. Ask
the seller. And don't buy unless you're sure of the answer.
Read descriptions especially carefully when the title includes a lot
of capital letters and exclamation points. Frequently these sellers are
using hype and lots of
adjectives to make an item look like a better deal than it is.
Don't discount these immediately, as some sellers are just enthusiastic about their goods. The prices in those cases are usually way out of line, but you can occasionally find a few good deals in these types of listings.
Watch for valid, but misleading, quotes. If someone quotes a price based on a guide, make sure you know what year the quote is from, and whether it's a retail or wholesale price. Several sellers on eBay list certain uncut trading card sheets as "Listed at $99 in the 1990 (or '91 or '92) price guide!"
That's true. And many people assume that collectibles increase in price every year. That's NOT true.
The early 90's were boom times for certain comic and fantasy art-related collectibles. Speculators drove prices through the roof. They have since come back down to rational levels that relate to their scarcity and the demand for the items.
Don't take quotes, even verifiable ones, as indicators of the real value
of an item. Know the current value, and decide for yourself what the item
is worth. Remember, you
are the market.
Know something about what you're bidding on, or get help from someone
who does. This is especially important when buying anything on which you
expect to make a
profit/investment return.
As an example, there are a number of sellers on eBay right now who are offering "2000 Carats Of Emerald Rough For $20." To most people, that would sound absolutely too good to be true.
It's not. It's quite true, and about a fair price for the product to
a rockhound, or a hobbyist who was going to facet or cab the (usually)
low grade emerald content. A gamble,
but a small and educated one, based on accurate information.
If you were buying it as an investment, you'd very likely be convinced that you were scammed when you saw what you had bought. There's a significant difference between "emerald rough" and "rough emeralds."
2000 carats is nearly a pound. That weight of rough emeralds (the uncut crystals) would be worth considerably more than that, even in very low grades. Emerald rough (in this case "mine run") is a few crystals and the actual matrix rock in which they're found. It wouldn't even make a pretty paper weight.
It's not unusual to see someone misunderstand completely accurate descriptions and bid far beyond the actual value of an item. In these cases, it's not the seller who's at fault.
You make your bid, you lie in it. Know what you're bidding on.
Look through past auctions of similar items, and see what they generally closed at. If you see the same thing sold by different sellers at around the same price, you can generally expect that to be the market price. Only bid higher than those prices if the item is unusual in some significant way.
If you see a lot of auctions by one seller that close with the item unsold, there's probably a good reason. Especially if other sellers are getting good prices for their wares.
Make sure the pictures are clear, and they're in scale. The best descriptions
have pictures showing the product from multiple angles, and fully describe
the condition of the
item. If the picture is unclear, check the guarantee and the seller's
feedback rating.
Use good sense in checking the ratings. A few negatives don't mean the
seller is a crook. Look at what the total percentage is, and what the
negatives actually say. Some
people use the threat of negative feedback to try and extort from the
seller after they've won a bid, and some people will complain about anything
at all.
If the seller has 1500 positive feedback comments, and 10 negatives which they explain satisfactorily, (eg, slow shipment due to a vacation) you're probably safe. ;)
Whether you're buying antiques, ephemera, gems, jewelry or GI Joe dolls, your best protection is knowing the market. Most sellers are on the up and up, and online auctions can be a great source of good buys. Be careful, but don't be paranoid.
And pay with a credit card or other traceable (and contestable) means.
For more information on online auctions, safeguards, trends, and managing your bidding, check out http://www.auctionwatch.com
Frauds and Scams