Top 10 Things to Know Before Bidding on an Auction Website

If you are new to the world of auctions, you must do some research before bidding on products or services. New online bidders can be paying much more for an item than is necessary. Here are some things that you should look for:1. Type of Auction:Is it a Dutch, English, Sealed-Bid or Vickrey Auction? Most online auctions are the Dutch-style, which means the auctioneer asks a certain price as a minimum (called a reserve) and the bidders keep bidding until time is up. The person who has out-bid the others wins and then must pay for the item.Other types of auctions include business to consumer or consumer-to-consumer. eBay is the consumer-to-consumer model where almost anyone can sell their wares and anyone can bid on the item or service. is a business to consumer auction site, where there are trusted vendors who sell new items like jewelry, tools, watches and electronics.2. No Reserve Bids:This means there is no minimum amount you must bid before the auction will send you the item. This is a great way to save money and get great items – generally, there is no catch. Check the details before bidding.3. Packing & Shipping Costs:Always, and I cannot stress this enough, always check to see how much the shipping charges are before you bid! There are many examples of people having the winning bid on an item and then realizing the shipping fee is more than the cost of the item.

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