Should you bid in an eBay "Live Auction"?  

Not if you want to avoid being fleeced.

Have you noticed that NO so-called "Live Auction" sellers have 100% positive feedback? 

In fact many of them have such bad feedback it is amazing that they can attract any bidders at all!

Is it optimism or stupidity that leads a new bidder to believe that, just because a seller has mistreated other bidders, the new bidder is going to have a flawless experience? 

We have never been able to understand why it is that a person will bid on an item offered by a seller with terrible feedback and then express shock and indignation when he is mistreated.  In life, you get what exactly what you deserve.

Some of eBay's Live Auctions are little more than scams to deprive you of your money.  In fact, most of them are not "live" at all in that there are actually no floor bidders. 

While a few of eBay's live auctions are run by legitimate, i.e. licensed, auction houses with auction rooms where people gather to bid in person, many others exist only in cyberspace or in the imagination of the seller.  You will note that the same items keep appearing, month after month.

We and our clients recently had experiences with one of the largest, most visible and most prolific of eBay's "Live Auction" scammers:

One of the experiences went like this: First, we emailed the seller for more photos of the item.  Sellers in eBay's live auctions seldom post more than a photo or two of an item, and they seldom offer a detailed description of an item's condition.  By doing this, they try to avoid claims of misrepresentation. 

If a seller shows one picture of an Asian vase and describes it as "10 Inch Vase," and you bid on it with the firm conviction that it is a ten inch Chinese vase of the Chien Lung period in perfect condition with no damage, you are taking a major risk by making assumptions based on facts not in evidence.  When you receive the vase, you realize it is a reproduction with heavy damage.  You complain, but you are out of luck because you got exactly what you bid on: a 10 inch vase.

Secondly, our seller replies with the requested photos and adds that he will sell us the item immediately for $140 and close the auction.  Of course, the price is far too high, but we relay this information to our client.

Our client then decides he will place an absentee bid on the item.  All of the opening bids in this seller's auctions are $50, even though many of their items are not even worth $50 retail, much less at auction!  Our client bids $80. 

The time for the so-called "live auction" arrives, and we and our client watch the auction live.  The item in question "sells" for $100 to a "floor bidder" and appears in eBay's closed item search as an item which sold for $100.  It does not appear as not having met its reserve.  Most live auctions, legitimate or not, will have an undisclosed reserve on many items.  In any event, the item shows up in closed item search as a sold item with a final price of $100.

Twelve hours later our client receives an email from the seller offering him the supposed "sold" item for $180, or forty dollars more than the prior offer.  (Liars have a difficult time keeping their lies straight.) The email from the seller states that the item "failed to sell." 

Scam? You be the judge.  If it does not pass the smell test, it is a scam.  Obviously the seller was manipulating the auction and there were no floor bidders at all.

eBay Live auctions are like gambling casinos: the House Always Wins.  To add insult to injury, some of eBay's Live auctions stock their inventory with fakes and reproductions.  In fact, 99% of Chinese or Japanese pottery or porcelain you buy in such auctions is likely to be fake. 

Fake Imperial Chinese wares, Imari and fake Sumida Gawa is especially popular with these venues.  Buyer Beware. 

If you are considering placing a substantial absentee bid for any high end item, think again.  Items are not returnable.

Further, many of the live auction sellers do not accept credit card payments, meaning that you have no means of disputing a charge.  Presumably when eBay's new rules take effect in May, 2008 all live auction sellers will either accept credit cards or be forced to leave eBay. NEVER buy anything from any online seller except by using a credit card!  To do otherwise courts disaster.

We know of one not-too-bright eBay and Trocadero seller who placed an absentee bid of $11,000 for a piece of Japanese Satsuma offered by Christie's in London.  When the item arrived, the item had extensive restorations and damages that were not mentioned by the auction house.  The buyer was out of luck because the auction house made no guarantees of condition: they recommended that all buyers inspect property before bidding.  Major auction houses such as Christie's and Sotheby's guarantee Authenticity, NOT Condition.

eBay Live auctioneers basically guarantee nothing.

If you are going to place an absentee bid on an item, you must first hire a known, competent auction agent to personally inspect the item and report to you in detail on the condition issues of concern to you.  The agent will then bid on the item for you if you are satisfied with his condition report.  The agent will also arrange for shipping if you wish.

If you place an absentee bid you are a sitting duck: the auction house will simply run up the price to the amount of your absentee bid and dump the item on you. 

Auction houses and gambling casinos make their money from gullible morons.  Only you can save yourself from your own stupidity.

We would never bid in any of eBay's Live Auctions and we do not recommend any of them to anyone.

Another irritating problem with live auctions is that, in most cases, they do not provide shipping services.  They require you to contract with a packing and shipping service to pick up, pack and ship your item.  If you do not arrange for prompt pick up of your item, they will charge you a storage fee.

And for all this inconvenience they will happily charge you a buyer's premium of 15-30% in addition to your already too-high bid!  A fool and his money are soon parted.

eBay Live Auctions: A Bad Idea at Best; A Total Scam at Worst.  

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Update:

(At last, on April 15, 2008 eBay announced that "Live Auctions" are being discontinued at the end of 2008!)