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My Adventures on eBayKaren Woerner, CUGGMarch 2002 |
One of the most popular methods of purchasing items online is
the
auction. And, with over 42 million registered users, eBay is
the most
popular auction site on the internet. It was founded in 1995
and I
discovered it in 1998 when a friend of mine was hollering and jumping
around the room. He had "won" an auction. I asked
him what he had won
and he told me about some rare Star Wars Memorabilia. I don't
often win
anything so I was impressed that he was going to get something for
free. "For free?" he said. "No, I won the right to
purchase the
poster!" Thus was I initiated into the world of online
auctions. It
would be another 3 years before I would stop just browsing and actually
purchase something.
THE CAMERA
Well, I had done my research and I knew what I wanted: a Sony Mavica
FD-91 digital camera. There are newer models that save the
photos on CD
but I knew I couldn't afford them. This was the camera for
me. For
weeks I observed the auctions for the Sony Mavica FD-91, checking out
the selling prices and looking for good deals. Then, just
before
Thanksgiving, I saw something that opened my eyes a little wider—the
seller was offering not just a camera but a battery, recharger, AND a
tripod. Great, I thought. But then I had to look
into the seller's
ratings on eBay.
CHECKING OUT THE
SELLER
Checking into the seller's history is easy. Just click on the
item and open the description page. There are links there that allow
you to view the seller's "Feedback Profile," where past customers voice
their opinions. The seller I was researching had an overwhelmingly
positive rating from customers. I read the few negative comments and
they dealt with minor problems (like customers not receiving items
promptly). None of the comments indicated that the seller was dishonest
or irresponsible. I was satisfied and decided to bid on the item.
BIDDING ON AN
AUCTION
When I bid on the camera, the auction was ending in a few hours. Since
the time was so short, it was easy for me to keep my eye on the action
and counter any higher bids. Bidders can also opt for e-mail
notification to track the progress of the auction. One can also opt for
automatic counter-bidding up to a specified dollar amount. In this way
eBay will bid for you and you can go about your business without
constantly checking on the auction.
KEEPING MY BUYING IN
CHECK
I decided in advance that I would only bid up to a certain
dollar
amount. That decision kept me from getting out of control in a bidding
war with other buyers. My objective was to buy a camera at a reasonable
price. In a bidding war, winning becomes the objective and things can
get out of control. This atmosphere of competition serves the buyer,
not the seller. Fortunately for me, I won the auction bidding a little
less than the limit I set for myself. Now I had to pay for the item.
PAYMENT
OPTIONS
eBay has payment options that vary with each seller. Some
sellers
only take money orders and others accept credit cards, checks, money
orders, or various forms of online monetary transactions. It is a good
idea to read the fine print in the item description in advance and
discover the acceptable forms of payment. You can e-mail a question to
the seller to learn about all the payment options and even to negotiate
the terms.
USING
PAYPAL
Though I usually use a credit card to purchase items online, for
personal reasons, I decided to use PayPal this time. I had had success
using PayPal to transfer funds in the past. I did not want to use my
credit card with an unknown seller because even people/companies with
good eBay ratings can be lax in their security. I decided to depend on
the security measures set up by PayPal.
HOW
PAYPAL WORKS
PayPal is essentially a middleman, transferring funds from one person
to another through their online transfer system. They are not an escrow
account and the funds you deposit are privately insured (not through
the FDIC) against unauthorized withdrawals. They used existing methods
of electronic transfer to move money from one account (bank accounts
and credit card accounts) to another. Though PayPal will investigate
fraud claims, it is still possible for someone to use PayPal illegally.
I did find some consumer complaints against PayPal at
ResellerRatings.com
but I decided that I trusted the company enough to
use it online. As with any other financial transaction, it is
ultimately up to the individual buyers and sellers to do their research
and proceed with caution.
ESTABLISHING A PAYPAL
ACCOUNT
The year before, I had established an account with PayPal and deposited
funds through electronic transfer from my checking account. It took a
while to establish an account because PayPal had to verify my bank
information. Throughout the year, I had used PayPal several times and
had no problems transferring small sums (under $50).
USING PAYPAL
When the time came to pay for the camera, it was close to Thanksgiving.
I requested that a deposit be credited to my PayPal account (from my
checking account). I then requested the funds be transferred to the
seller. The only problem I had was that it took more than the promised
5 working days. The seller kept sending me e-mails, expressing concern
that he hadn't gotten the money. But we kept in touch and I assured him
that PayPal would come through. I communicated to PayPal via e-mail and
the transfer was finally made 7 working days (the holiday made the
actual waiting time closer to 11 days) after my request. Things went
smoothly from there. The seller mailed my camera right away and I
received it in less than a week. And I loved my new camera!
CONSUMER
LESSON
As always, it is important to do your homework, and to know what you
are buying and whom you are buying from. Contact the seller with any
questions you have concerning the item for sale and keep in touch with
the seller during the entire process. Once you have won an auction, you
don't want to lose the item and damage your buyer's rating by not
communicating. So let the seller know what is going on—how you are
going to pay and any conditions that need to be met. Proceed with
caution and communicate. And don't use PayPal if you are in a hurry.