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I did some research to analyze how people get ripped off on E BAY and what you can do to protect yourself.

1. Never respond to any e mail in your personal e mail inbox from EBAY, or with an E BAY LOGO on it. Delete these e mails. They are phishing scams, where the sender is trying to get your credit card, password or financial information from you.
2. Do not respond to second chance offers from people, after an auction has closed. People can see your ID in the bid history of any auction and they can see your ID, so the scam is, they try to contact you afterwards, and offer you some special deal. Report these to E BAY on their live customer support site on E BAY.
3. Do not ever send money by Western Union, or wire transfer, of any kind. Use only Paypal. If they do not have a Paypal account DON'T BID ON THEIR ITEM. Just wait, you'll find another, the same or better.
4. Its up to you to bid on items located outside the USA. Read the comments carefully. Any negative feedback is a red flag. Avoid these sellers.
5. Avoid sellers with a lot of explanations for every bad feedback that they received. Find sellers who have almost no negatives, and you will avoid problems.
6. Communicate with sellers or buyers using E BAY message system, not your personal e mail.
   
7. Do not send your product to anyone until you have verified receipt of the money, that the money is in you hand or your Paypal Account. No matter what.
8. If you are buying, go to advanced search to see what  the final prices for closed auctions (auctions that happened in the past). You can see if a offering price or reserve is too high or low.
   
9. Do a search on closed auctions under advanced search to see what other items the Seller has sold in the past.  you will begin to see how legitimate the seller is by looking here.

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