© Dr. Christopher LaBuda

Online auctions require that all sellers and buyers are registered. This enables website administrators to keep track of items for sale and who bids on what. It protects both the auction providers, the buyers, and sellers. Registration is usually simple and painless. Would-be-users simply complete a registration form that includes your name, address, phone number, desired username and password. After completing this form, users are typically required to validate their registration by completing the instructions sent by email.

Most online auctions follow the same general format when it comes to bidding, winning and paying for the completed auction. But first, you need to find something to bid on.

To find a specific item, you can type a keyword in the search box or click on one of the categories of interest to see a list of similar items. You can click on one of the categories you find interesting. This shows you a list of items grouped by a common theme. Click on the name of the item you’d like more information about. If you wish to place a bid, enter your bid in the box below the item, then just click on the place bid button nearby.

I suggest that a good strategy for items you really want is to place the highest bid you are willing to pay. Otherwise, someone may beat you out at the last minute. These people are commonly known as auction snipers. Should someone outbid you, the auction might send you an e-mail notification with a link back to the item. Click on the link in your e-mail message and you will be returned directly to the item. You can then decide whether you want to raise your bid.

To raise your bid, go down to the place bid input box below the item’s description and enter your new, higher bid.

Sometimes a seller enters a Reserve Bid. For example, a specific item sells for $100 new. The seller decides to place a starting bid of $1 on the item but they want to get at least $80 for it. So a reserve bid of $80 is entered into the system. In such a case–even if you are the high bidder at, say, $60–you will not win the item unless you go over $80. Although this auction strategy is frustrating, it protects the seller from selling their item for less than they feel it’s worth.

Most auctions automatically send the buyer (highest bidder) and seller of the item an e-mail when the auction ends. The buyer and seller then are responsible for making their own arrangements to complete the deal by payment and shipment.

It is important to remember that online auctions merely offer a venue for buying and selling. Auction websites will not, and legally cannot, be held responsible in any way for any lack of performance by any and all parties. With that said, one must always be cautious when purchasing expensive items from others. Most auction sellers are sincere, honest individuals that only benefit from good service with others. I’ve had over 1000 transactions on online auctions and only 3 people did not provide the items/services I won. If problems do arise, contacting the auction administrator usually results in an investigation and can lead to closing the account of anyone who abuses the auction.

With all that said, let’s go shopping!

About the Author:

Dr. LaBuda is owner and operator of two online auction websites, http://www.whybidmore.com , an auction site exclusively for antiques and collectibles, and http://www.magicebid.com , a webmaster resource center and auction.