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Auction Sites How They Work
LISTING AND BIDDING
Buyers and sellers must register. Sellers may pay a listing fee and a small percentage of the final selling price, but there are rarely any fees for buyers.
Online auctions are not usually live. You place bids over several days up until a stated closing date. There should be a bidding history on each item displayed, as well as a description of the item and the seller\'s contact details.
Some sites have an automatic bidding service where you set your maximum and the site automatically bids on your behalf up to this amount.
If you make the highest bid, the site will contact you by email. It\'s then up to you to contact the seller and arrange for payment and delivery of the goods.
PAYMENT AND DELIVERY
Most transactions are carried out in good faith, but many sites try to avoid problems with feedback-based ratings schemes for individual buyers and sellers, and they will ban fraudulent users.
You might also be able to protect yourself with a Safe Trader Payment, These companies withhold payment from the seller until the buyer has received and inspected the goods, and usually charge a small fee for doing so.
Credit cards are the best form of payment, as you can request a \"chargeback\" from your card issuer if your goods don\'t arrive. If the seller doesn\'t accept credit cards, you can use Net-based credit card processing services for a fee. But steer clear of money orders and the like: they can be expensive and take forever to clear.
YOUR RIGHTS AT AUCTION
Online auctions are usually regarded as private sales, which are not covered by either the Fair Trading Act or the Consumer Guarantees Act. But contract law does apply: for example, the seller can\'t refuse to supply, or supply the wrong thing; and buyers must pay up.
If the site is involved in the sale as an auctioneer, the Fair Trading Act will apply, but the Consumer Guarantees Act probably will not.
If you have a problem with a sale based where the other party to the sale is also in in New Zealand, take it to a Disputes Tribunal If it\'s a problem with someone overseas, however, you may have trouble enforcing your rights.
With any auction site its terms and conditions will be binding unless they contravene your statutory rights.
As with any contractual situation, go into it with your eyes open. Read the terms and conditions, make sure you understand exactly what you are buying and how, use an escrow service to protect your money, and keep in touch with the person you are trading with.
OUR ADVICE
BUYERS
Read the description of the item carefully before bidding.
Confirm who pays delivery costs: you or the seller?
Check what payment forms the seller accepts. Use a credit card if possible .
Email the seller promptly if you are the successful bidder. Include a description of the item in your email (some sellers may have listed many items) and explain how you will pay.
Pay promptly, and inform the seller when the goods have been received.
Don\'t bid high early, which may raise bids unnecessarily. Try and be online during the closing few minutes of the auction or use automatic bidding if available.
SELLERS
Be honest in the description of the goods you are selling. A photo helps.
Tell the buyer what payment forms you will accept. Avoid ordinary cheques and postal money orders from overseas which can take weeks to process.
Consider using an escrow service to protect against buyers who don\'t pay.
Let the buyer know when payment has been received
Dispatch goods quickly and let the buyer know when this has been done.
BOTH BUYERS AND SELLERS
Check out the buyer/seller. Ask for a phone number or physical address, and check any user ratings scheme the site has.
Check out the site\'s terms and conditions. By registering, you agree to them.
Make sure you know how the site will treat your personal information, and if you\'re sending credit card details, make sure the site is secure.
Contribute to rating schemes by posting comments about buyers or sellers you have dealt with.
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