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Top 10 Things to Know Before Bidding on an Auction Website

If you are new to the world of auctions, you must do some research before bidding on products or services. New online bidders can be paying much more for an item than is necessary. Here are some things that you should look for:

1. Type of Auction:

Is it a Dutch, English, Sealed-Bid or Vickrey Auction? Most online auctions are the Dutch-style, which means the auctioneer asks a certain price as a minimum (called a reserve) and the bidders keep bidding until time is up. The person who has out-bid the others wins and then must pay for the item.

Other types of auctions include business to consumer or consumer-to-consumer. eBay is the consumer-to-consumer model where almost anyone can sell their wares and anyone can bid on the item or service. AlltheAuctions.com www.alltheauctions.com is a business to consumer auction site, where there are trusted vendors who sell new items like jewelry, tools, watches and electronics.

2. No Reserve Bids:

This means there is no minimum amount you must bid before the auction will send you the item. This is a great way to save money and get great items – generally, there is no catch. Check the details before bidding.

3. Packing & Shipping Costs:

Always, and I cannot stress this enough, always check to see how much the shipping charges are before you bid! There are many examples of people having the winning bid on an item and then realizing the shipping fee is more than the cost of the item.

4. Spending:

Always know the maximum amount of money you are willing to spend on an item. Also, do your research to find the fair market value of an item. Obviously, if the item is antique there are many different facets to the auction pricing, including quality, condition and original packaging. Never get overly competitive and just bid to win. You will pay more money and the other people at the auction will not be happy since in future you may drive up the price for items they will bid on. However, you will make the auction site happy

5. Questions & Contact Info:

A reputable auction site or seller will have easy to find contact details to answer all of your questions. If you find no contact information, do not bid on anything. You may be short-changed on your items and if you cannot contact someone when you want to buy something, chances are if you want to return it or if the item is broken, there will be no one to contact then either.

6. Fads & Resale Value:

Items like Cabbage Patch Dolls were big in the 1980s and are now considered collectibles. However, many items that were mass produced are worth virtually nothing. Make sure you know the long term outcome before you bid. Also, if people are making foolish purchases now because they trendy, when fashion changes, the market for them may collapse.

7. Auction Newsletters:

You should sign-up for online auction newsletters, like http://visitor.constantcontact.com/email.jsp?m=1101613989976 especially if you are a collector. Some items rarely come onto the market, and if you want to know when they are available, you must be in the loop. Also, put yourself out there, especially with business to consumer auction sites. Send them an email and tell them what you are looking for and they will put you on a list and notify you when and if the item comes available.

8. Sniping:

It has happened to all of us. No one has outbid you on the item you want. Your bid has been the top bid for about a week. You check your bid moments before and when you turn away from the computer for one second a sniper comes in and outbids you and wins. Who is to blame? You are, in most cases. A sniper can be bidding on his own or can use automated bidding tools to outbid you. There is nothing illegal about it.

In an effort to help, most auction sites will automatically extend an auction by five minutes if there is a bid placed in the last 10 minutes of an auction.

Proxy bidding is the best thing you can do in this instance. Figure out what the maximum you wish to pay is and enter the amount in the correct location. The amount of your bid will only increase if someone else bids against you. If the sniper comes in and bids over you, you have your maximum price entered and you can feel good that you did not overspend.

9. Bigger is Not Necessarily Better:

Auctions that sell anything and everything are great for someone who buys many different items. Auctions that sell specific niches are definitely better for collectors. To find auction websites that may be of interest to you just enter a large-scale search term like ‘jewelry auction’ or ‘bracelet auction’, etc. Bigger auctions may charge the vendor/seller more money to list their items and that extra charge will trickle down to you. My advice, shop around.

10. Oops…

In the world of online auctions, or any other auctions for that matter, a bid is a bid, and it is like taking your finger off a checker. You made your move and now you must live with it. If you must renege, you will be considered a bad person, regardless of the issue. This is because you have driven up the cost of the item for other buyers, you have promised the vendor that you will buy and now you have just gone back on your word. What do you expect? Only, only, only retract your bid when absolutely necessary. Think before you bid.