Auction Wisconsin.com | Beginners Auction Guide

Rules of the Game

In general, all online auction sites play by the same set of rules. That is, they operate on a similar set of principles, with which you should be intimately familiar if you intend to buy and sell safely and effectively. However, so you don't have to combine each service's terms of service agreements, we've done the dirty work for you and culled the most important facts. If you have anything to add, or if we've missed anything important, let us know!

Getting Started
Registration is mandatory on every major online auction site if you want to buy and sell merchandise. It's not a big deal, unless you are highly protective of your personal information, which in this case includes your name, email, address, phone number, and often your credit card number. Be aware that most services have privacy policies, which outline how they collect information about you from your computer (using cookies), and how they use your personal information. You should review these policies before registering. It's always free to look. Window-shopping doesn't require registration, and rubberneckers are free to browse the virtual aisles as much as they like. But if you do register, you must be at least 18 years old.

To complete the registration process, you'll have to agree to the service's terms of service or terms of participation. (Amazon.com Auctions calls it a participation agreement.) This information will outline the service's dos and don'ts--mostly the don'ts--such as trying to manipulate prices, selling illegal goods, and other infractions we'll discuss later. The terms are also painfully clear about the service's part in the auction process. For the most part, auction sites are the middlemen--nothing more. By accepting their terms of service, you are effectively waiving their liability for your person-to-person transactions.

This frees auction sites from most legal responsibilities to the buyer; chief among them is not providing warranties on items listed. Although some services, such as Onsale and Bid.com, auction goods from manufacturers that are under manufacturer warranties, person-to-person auction services do not. All items are the property of the sellers, who are responsible for guarantees, refunds, and warranties. However, if you use a credit card with a buyer protection plan for the purchase, most issuers will automatically extend manufacturer warranties (often double the coverage period) and will provide some protection to the buyer to ensure the purchase is as agreed.

Auction sites also do not guarantee the legitimacy of the items being sold or the sellers and buyers using the service. Users are responsible for judging the reliability of other members and their merchandise. However, online services will arbitrate disputes between buyers and sellers. They will also refund fees in cases of deadbeat bidding or fraud, and offer insurance against fraud (beware of the deductible, though). Finally, all services reserve the right to cancel your membership if you violate their terms.

As with any transaction-based service on the Web, you'll receive or create a password and username. Most services let you change your password, username, email, and personal information. But if you do so, you'll likely lose the feedback or rating you've earned from other members. Your username will likely be tagged with a symbol indicating a change in your account information. However, both Amazon and eBay have developed a way for users to create a legitimate alias that can be used to protect the user's email address (thus avoiding spam) and, if the user changes the alias, the feedback will follow to the new alias. Both sites provide a history of alias changes that other registered users can review.

Next Page | What else should I know right off the bat?