Major news bulletin... Rushing out to buy something without knowing what you are doing is not smart business! If you are investing in a five dollar book, simply to get a feel for the auction process, it’s no big deal. But it is still important to follow due diligence.
Once you learn the process, not only will you not make serious buying errors (or not as many), you will also learn how to be a more powerful seller. Here are the key elements…
1) Item Description -- Obviously it is the buyer’s responsibility to know what he is buying. If you have any questions, ask, ask, ask!
2) Item Condition -- There are “grades,” which refer to condition. These are well established in professional circles and are used in some descriptions of auction items. The grades are...
i) Mint or MIB (for Mint-in-Box) -- this is a never-used item, still in its original container, complete with directions. In other words, perfect.ii) Near mint -- the item is perfect but it no longer has the original packaging or the packaging is less than perfect.
iii) Excellent -- has some minor wear but is very close to perfect.
iv) Very good -- has minor defects
v) Good -- looks used, with defects
vi) Poor -- is barely collectible at all, heavy damage, heavy use
Be forewarned! Most people tend to overestimate the value of their goods. This isn’t necessarily because they are liars or they intend to deceive (although some sellers are dishonest). It’s just that the items involved are “treasures” and it’s tough to be objective. So find out... Is the item new or used? If new, does it have its original packaging? Its warranty? Directions? If used, what is its condition in terms of scratches, missing parts, faded paint? If applicable, is it genuine, or a reproduction? Who is the maker?
3) Transaction Terms -- You need to know the details of the transaction...i) What is the seller’s refund policy if the item is damaged?
ii) How long will it take to get your purchase?
iii) What are your payment options?
iv) Who pays for shipping (almost always the buyer).
v) Who pays for insurance, if any?
4) Seller profile -- The most important thing you can do is to know who you are buying from. eBay, for example, has an elaborate system of seller feedback.
Good feedback is absolutely critical to successful selling! You can see that your entire history as a seller is displayed for all to see. This method keeps people honest, and prevents sleazy people from harming buyers.
Buyers have three choices for feedback... negative, positive or neutral. Any buyer wishing to give negative feedback must have a transaction number, or he cannot give feedback. This is a way of protecting sellers from spiteful people.
When you move into the seller’s role, remember... if you want to receive (positive) feedback, you need to give it! The feedback mechanism, however, is not always clear. There are sometimes a lot of very confusing directions for finding your buyer or seller to give feedback. For example, you might be asked for the ID or the auction number of the transaction you are seeking. It might have been weeks since the auction was completed and you can’t easily access this information.
Solution? To locate someone on eBay, click on “Services” link and then the link to the Feedback Forum. Once you are there, click on the “Leave feedback about...” link.
Type in your ID and password and click “Find all transactions in the past 60 days,” and the site will take you to your own auctions. There you will find a list of everyone you have done business with in the past two months. Smooth, easy, beautiful. You don’t have to remember any password or ID but your own. Guaranteed! I wasted lots of time trying to find other folks’ IDs until I discovered this simple method!
We have probably all had dealings with...
... “The Customer from Hell” at some time or other.
What if a buyer unfairly maligns you? First of all, she can only give you one negative point, although she can load up your feedback with unflattering comments. Secondly, the seller always has a chance to reply.
As a buyer, you have the responsibility to use feedback fairly. If you don’t, you may be on the receiving end of some pretty tough criticism when you are in the seller’s role. So...
i) Wait until the transaction is complete before you comment. Don’t be too hasty to give negative feedback (there are only specific circumstances where feedback can be withdrawn).
ii) You can’t leave feedback for yourself.
5) Value assessment -- Before you bid on anything, do your best to understand the value of what you are buying. Of course, value is truly in the eye of the beholder. But there are ways to educate yourself. eBay offers information on several categories. It’s free and fairly accurate. If eBay doesn’t know, who does?
These articles are just one way to obtain information. There are countless books, magazines and Internet information about all kinds of subjects.If you are bidding on an item, it must be because you are interested in this area. To become a successful auction player, you must be knowledgeable about your particular interest. So use every available resource at your disposal.
There are two cautionary flags, however… All experts are not created equal. In other words, every so-called expert isn’t really. Some people claim to know more than they do, simply because of ignorance. For others, it’s because they wish to make money at any cost. If in doubt, never take the advice of only one person.
Most of the more experienced auction dealers agree that the “price guides” that are so common in bookstores may not be very reliable. Just because a guide says your 1959 Elvis record is worth $1500, don’t expect to get that much money for it if you decide to auction it. Of course, maybe you’ll get much more. Buyers often make errors. A good place to do background research is at…
http://pages.ebay.com/community/library/ebay/6) Financial limits -- I can’t emphasize this enough... Don’t get the wrong type of auction fever! Set your limit and stick to it unless there is an absolutely compelling and rational reason for doing otherwise.
The most famous example I know is a gentleman who bid over $100,000 on an item. Fortunately for him, the sellers were gracious and the item sold for a more reasonable $11,000.