Online auctions continue to build momentum in the Internet world. More and more people find that purchasing what you need through an auction online can save both money and time; therefore the number of online auction sites continues to increase.

Due to the vast number of websites in the online auction industry, it can be difficult to determine which one to use in order to find the supplies you need and the random items you desire. Consider the following information about online auctions before making your first bid:

1. For added security, many online auction sites provide you with the option to pay through an online payment system, such as PayPal.

2. The main benefits of an Internet auction include the convenience of shopping from your own home, the availability of rare and hard to find products, and saving money.

3. While online auctions have many benefits, one drawback is that you don’t have the opportunity to examine the item you bid on, other than photographs, before purchasing it.

Action Steps
The best contacts and resources to help you get it done

Join an online auction site to start bidding on and selling items

Some online auction sites specialize in one type of product, such as online auto auctions, online jewelry auctions or online gun auctions. Others carry every item you can think of, from automobiles to used toys and everything in between. Most sites require that you register as a user, free, in order to bid on an item up for auction. Charges only accumulate when you start selling items, and those costs are typically listing fees and a percentage of the final value if the item sells.

I recommend: Purchase your next vehicle through online car auctions on websites such as Monster Motors. Join eBay to participate in online auto auctions, find inexpensive maternity clothes, or buy all of the parts to build your own computer. Visit websites like UBid.com to bid on excess inventory from businesses across the nation.

Open an account with an Internet payment service to pay for an auction online

Online auction sites such as eBay allow you to send payment to the seller of the item you won through an online payment service. With most services, you enter your bank account or credit card information into their secure website, verify that it is the right information, and then make payments on any number of websites without entering your credit card information repeatedly. It's safe and much more secure.

I recommend: Read Microsoft’s article on protecting your privacy by using online payment services. Join PayPal, an online payment service that allows you to send payment securely to thousands of online stores, as well as online auction sites like eBay. Examine Bill Me Later if you have interest in purchasing items online and receiving a bill each month for all of your purchases.

Examine auctions online carefully before bidding on the item

Many online auctions sites have strict rules that their sellers must abide by, as well as a feedback ranking system that allows buyers to know just how honest a seller is about the items he lists for auction. Be sure that the online auction information for each item gives specific details on the condition of the item and provides a number of pictures. Also, be sure to ask the seller any questions you may have before bidding; once you bid on an item, you are responsible for purchasing it if you win the auction.

I recommend: Read the rules and restrictions for eBay sellers to gain a better understanding of the standards a great seller should uphold. The Washington State Attorney General provides tips for buying through an auction online. Visit BidFind.com for information on feedback ratings that generally apply to all online auction sites.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider expanding your business by offering items, such as overstock or returns, for sale in an online auction. It will help you to market your product and business, as well as bring in more sales.