An online auction site CEO offers STEPHANIE HOO some tips on how to get what you want out of auctions -- without getting ripped off.
Small costs add up: Watch out for hidden shipping and credit fees when bidding online, advises one auction site CEO. (AP Photo/Haraz N. Ghanbari)
A '69 Camaro. A boxed set of Teenage Mutant Ninja Turtles. A ladybug watch.
Quirky items abound at the auction site WhaBam.com, which casts itself as a kind-of anti-eBay for offering no fakes, no "sniping" (using a computer program to continuously bid a price higher) and no fees for posting -- you don't pay anything until your item sells.
Just four months old, California-based WhaBam is a baby in the auction world, but CEO Eren Niazi has high hopes. WhaBam's no-fee posting has already attracted niche-market items that can take longer to sell, like the aforementioned Camaro as well as antique vases and coins.
"Unique items usually cost a lot to keep re-listing on other auction sites," Niazi says. "It doesn't cost them anything to promote it on WhaBam."
The site is growing fast: Already, more than 19,000 items are listed. But that compares to, oh, a million-gajillion on eBay. Yeah, WhaBam has a ways to go. In the meantime, Niazi offers tips on how to navigate an online auction -- whether or not it's on WhaBam.
Happy hunting.
FOR THE BUYERS:
1. Trust your instincts. If the price seems too good to be true, it probably is. Niazi puts the warning level at more than 80 percent off the market price. "Something's probably not right there," he says. A buyer's "first instinct is probably right."
2. Relax. Not everything is a last-chance situation. "Another of the same item will appear," he says. "There are more than one of most things out there in the world."
3. Avoid bidding wars. For some, the "win" is part of the fun. But for many, the bidding war is where you lose your head and ultimately get ripped off. Consider the "instant buy" feature if the site has one. Or, don't bid until the end of the auction, he says.
4. Research a seller. Read the feedback. Niazi also recommends buying locally. His site offers a zip code finder.
5. Keep an eye on any extra fees. "Always look at any additional shipping costs or credit card or payment processing charges," he says. Know what you'll be spending.
FOR THE SELLERS:
1. Don't ship an item until the payment clears the bank. Not when you receive the check, Niazi says -- when the check clears.
2. For a high-priced item, have the buyer contact you before bidding or buying. "With high-ticket items, if you purchase and don't really ask questions, the buyer and the seller both feel very uncomfortable," he says. In the listing, write: Please contact me.
3. Provide as much information as possible about the item. If there's damage, make a note of it. Include pictures.
4. Pay attention to when your auction will end. "It's also important when they end the listing that they don't do these things at 10 o'clock when they're really tired," Niazi says. Also, plan your auction around your vacation or work schedule.
5. Don't work outside the system. Sellers sometimes try to save on fees by concluding the transaction on their own, outside the auction site. "It exposes them to a lot of risk," Niazi says. "We recommend sellers keep everything on the site, so it's all visible."
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asap business writer Stephanie Hoo has never participated in an online auction, though she once bought a used copy of "The Bell Jar" on half.com.
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