How eBay Strives To Protect Customers In Auctions

There probably isn’t a person alive today that hasn’t heard of eBay at least once, and it has become a cultural icon that no other auction site has been able to rival in fame or notoriety. As with any type of auction site found on the Internet, we all can’t help but wonder what are our options for protection and recourse when an auction doesn’t go as it should. Most sellers are a real pleasure to deal with, but some can be unscrupulous and lie about the condition of an item.

What does eBay do to keep you safe? Well it all starts with the auction itself. A few years ago, when someone was competing against you bidding on an item, you were able to see their username and contact the individual. Fortunately, all of this has changed in order to protect your privacy and to cut down on the amount of threats issued by competing bidders. As a result, when you place your bid, all watchers can see are a few letters with stars in between as well as the number of auctions you’ve previously bid on.

Since your privacy is safe, you can at least rest assured that you can bid without fear of getting angry messages. In July of 2015, eBay officially broke its ties with PayPal and they have been registered as separate companies in order to ensure there is no conflict of interest. However, when paying for your auctions, PayPal is still the primary choice of payment accepted through which you can send an e-check, direct deposit or pay with debit or credit cards.

eBay has put in place a buyer protection program which basically tries to help buyers resolve issues they have directly with sellers. Usually, eBay will only intervene on behalf of a customer if the case is escalated and no reasonable resolution can be achieved by working with the seller. In most cases, buyers will need to return the unsatisfactory item in its original condition to the buyers, but as a new rule, eBay now forces sellers to pay for the return shipping if the item is not “as described”.

Once the item is received by the seller, eBay refunds the purchase price as well as the shipping costs to the buyer. There are rare cases where eBay doesn’t require the return of the item and a refund will be issued in any case.

Before taking advantage of the program, there are a couple of things that you will need to do. As a first step, you’re always asked to directly contact the seller to try and reach a reasonable resolution. If no resolution is reached, you will need to contact eBay within 45 days of receiving the item, open a case, and communicate with the seller throughout the protection claim process. As a last step, eBay will most likely ask you to return the item, but as was mentioned, if it wasn’t as described, sellers will have to pay for the shipping costs.

Why Are Bids In Penny Auctions So Cheap?

eBay Buyer Protection Program

eBay Buyer Protection Program

If you are reading this article, then you must be wondering how penny auctions work and why they are so cheap. They appear to good to be true right? Well, penny auctions are auction sites that will charge money each time a person bids. Every time someone bids, the price of the item goes up by  just one penny and hence the name penny auction.

There are hundreds of these sites in the internet, examples being Quibids and Swoopoo. Everyone wants to jump in this bandwagon and the main reason for this is that the business model tends to favor the business owners.

The main reason why these penny auction sites are popular is because one can get products are really cheap prices. However, this is not guaranteed and you can actually lose a lot of money trying to win. In this regard, you need to first understand how penny auctions work.

As earlier mentioned, penny auctions are auctioning where you will be required to pay a penny just to bid. This is actually in contrast to most conventional auctions. For instance, you can bid any number of times on eBay and they will never charge you a cent for the bid. You will ideally win the auction if you are the highest bidder.

On the other hand, penny auctions are won by the last bidder. Also, you can’t place any bid value you wish, you only bid to increase the product value by just a cent or a penny. So, the first bid will make the bid go to $0.01 and the second one will make the price go to £0.02. The trend goes on and on until the time is over.

Now it is easy to understand how an auction site makes money. Let’s say that there’s an item worth £10 and it sells for £2. You might think that £2 for a £10 product sounds like a good deal, but it is only for the winner. Put into consideration other people who have placed bids and had to pay for each bid and they ended up losing the product. So, everyone except the winner loses their money.

Now, let us look at the company’s profits for this example. Most sites will price their bids at £0.60 which means you have to pay 60 cents for every bid you place. And since the auction was won at $2, then 200 bids were placed. Therefore, the users spend a total of £120 for a £10 product. In this example, the company made a whopping £110 profit.

By know you understand why these auctions can be risky. Everyone besides the winner loses money. They are great, and you might even find some good deals. However, it is important that you learn the risks before you venture into any auction. A lot of people are unaware of how they work, and they end up losing a lot of money without even winning anything. But know that you are informed of how they work, you can participate in the auctions wisely.

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