How Auction Sites Work Online

Every day，thousands of items change hands via online auctions．eBay has been the darling of bargain hunters，as well as Wall Street investors．But hundreds of other sites now offer auctions pose some unique risks．To prevent rip-offs，proceed with caution．

As with online stores，the exact procedure varies by site，so make sure you understand the site's policy before you begin．In general，to participate，both sellers and buyers must register with the site．Sellers typically pay a flat fee or a percentage of the final sales price to list merchandise．Buyers pay the sellers directly and also pay the shipping costs．Auctions are usually time-based，meaning that the highest qualified bid at the end of the predetermined period—say a week—wins the item．

Of course，as a buyer，you can't actually see what you are bidding on．The best you can hope for is a full description and a photo．You must trust that it's accurate and that you receive your purchase in the stated condition．That's where the potential for fraud is greatest．Typically，auction sites claim no liability，although some do provide limited guarantees．So it's up to you to be a smart consumer．Here's how:

1．Avoid Auction Fraud．

2．Read the auction site's policy carefully before you bid．

3．Contact the seller directly and question him or her about the merchandise．

4．Get the seller's vital information，including name，address and phone number．

5．Check the auction site to see if there is any negative postings about the seller．

6．If possible，pay by credit card for the same protection you have when making purchases in the real world．Otherwise，consider using an escrow service．

7．Print a copy of your transaction for your records．