Suffice it to say, you cannot make purchasing on eBay foolproof for buyers.  However, there are ways to spin the odds of success far into your favor.  Success should mean that YOU get the bargain you’re looking for -- at the right price, it is delivered in a reasonable time and is the genuine item you expected.  If you are interested in how to assure the best deal possible, take the following important steps:

1.  Know your seller:  Obviously you cannot meet most sellers working on eBay.  You can, however, determine whether the seller has proven trustworthy in the past.  Buyers rate sellers (and vice versa) through feedback with a either positive, negative, or neutral grade.  One of the best predictors of future behavior is what the seller has done in the past.  So, try to trade only with members who have a high positive feedback score -- at least 99% would be a “best chance for a great deal” seller.  See my guide on Feedback for more details on understanding your seller reliably through feedback.

2.  After your purchase is received, take the time to do the new additional feedback input.  More recently, (largely due to the complaints from buyers and sellers about the old feedback system), eBay revamped its feedback system to include optional inclusion of more detail that you can submit anonymously.  That additional detail requires the buyer to take a few additional seconds to answer the additional questions.  The new system (built on the old feedback system), allows buyers to rate sellers specifically on the accuracy of the description, seller responsiveness (many complain that sellers ignore their e-mail messages), shipping and handling fees, and the timeliness of delivery.  Anonymous responses diminish “feedback blackmail,” in which one party threatens another with unjustified negative feedback.  It does allow a much more accurate rating of the sellers's service, while making it more clear to prospective buyers. 

3.  Avoid Disappointment from a Bad Seller BEFORE bidding.  Read the ad to determine shipping costs, understand auction terms, and what the return policy is.  To avoid disappointment or unpleasant surprises, know before you bid and what recourse you will have if you are disappointed. 

4.  Who is the Seller really?  An additional important pre-sale precaution is to check whether or not the seller has changed identities.  If the user’s ID has changed within the past 30 days, an icon will appear on the listing page.  To check for an earlier ID switch, go to the right side of the listing page (under seller info), click on the feedback score, then on “More Options” and “View ID History.” Any past names used on eBay will appear.  Sometimes sellers change names for legitimate reasons (for instance, to change to a name that better identifies what they are selling which helps in search engine optimization).  However, more often, a change or a number of them is to avoid the previously received poor reputation from bad feedback ratings or to hide a number of negative feedbacks or revealing buyer comments.

4.  Go beyond the seller’s screen name to verify the seller’s identity by e-mail.  Confirm that there is a physical address and/or phone number.  Do ask questions about the product or anything in the ad that was not clear to test seller responsiveness.  If you are not happy, it is well past time to find out you were dealing with an unresponsive seller.  If the seller doesn’t respond to your email or is rude or vague, don’t bid or buy.

5.  Review the types of products the seller has listed in the past.  If someone who previously specialized in toys is suddenly selling high end jewelry or electronics, ask why.

6.  DO comparison shop before bidding.  You’re here to get a great deal – to do so requires that you know exactly what a great deal actually is.  Do a search on Amazon, Shopzilla and Yahoo Shopping to find out what the item is retailing elsewhere for.  When your area of interest is antique or collectible, there are often web based price guides that you can easily find with Google.  If you are not an expert, consult someone who is.  For museum quality items always insist that the seller provide proof of authenticity (provenance) and detailed condition.  For high end clothing such as Travel Smith, Talbot’s, Lands’ End and others, the company usually has its own online catalogue on its website (and sizing charts in most cases too).

7.  Avoid Fakes -- Read carefully.  Even though eBay makes every attempt to stop bootleggers or dealers in fakes, the nature of the site (number of auctions uploaded 24/7) make it impossible for eBay to police it by themselves.  If you are an expert and see fakes being sold, report it.  Buyers need to be very aware of “bait and switch” type language.  They might begin with such words such as “genuine” or “authentic” and later in the ad use the term “inspired by,” clearly indicating (but buried in the ad) that the product is a knockoff.

8.  Bid Smart. It’s easy to get caught up in the moment and bid far more than you should.  As in live auctions, it is best to establish a top price you are willing to pay and stick to it.  Experience shows that, in most cases, the item being sold will turn up again at your price.  If you think you might get caught up in the moment and bid too much, use eBay’s bid proxy option.  At the last possible time you are available for the auction, go in and place an initial bid.  Then enter your maximum offer for the item, confidentially, in the proxy box.  When a competitor posts a higher bid, your bid is automatically bumped up just enough to put you in the lead. This drill is repeated until you’ve reached your maximum bid or you’ve won.  Proxy bidding helps many win when they can’t be available for auction end, while it keeps many more from paying too much.  With proxy bidding you can take great advantage of those late night (or early morning) auctions.  Proxy bidding is also magic for those who loose track of things they are watching or forgot to check their bid standing and lost a much coveted item by only a few cents. 

9.  Avoid Suspect Auctions.  When Britney Spears recently shaved her head in Hollywood, hundreds of sellers around the world suddenly had Britney’s hair for sale, obtained through a friend or relative who was there.  Based on results, that salon must have been the size of a football stadium!

10.  Beware of “Snipers.”  They are infuriating and legitimate!  You may feel very confident that you will get the item when you are still in the lead on a single bid three or four days after you made it.  “It isn’t won until it’s won” is the best rule to remember.  A very common practice is “sniping” in which someone swoops in at the last moment with a slightly higher bid and steals the prize.  It is a legitimate way to purchase, and very commonly practiced.  Sniping is also the reason that the real bidding on most items occurs in the final few hours or minutes of any auction.

11.  Just as a buyer should check out a seller, sellers should be careful too -- check out your bidders.  In either case, many do check your reputation.  So, it is critical to build and keep a solid positive reputation.  Buyers, please remember that a bid is binding.  Although buyer or seller retractions are allowed under special circumstances, they do show up on your account.  If you back out of a deal too often or with the wrong seller, your account could be suspended and your feedback reputation damaged.

12.  Based on results, Phineas T. Barnum is right “There’s a sucker born every minute.”  Don’t be a sucker for phisher emails.  They look like they come from PayPal or eBay and they don’t!  They are always “phishing” schemes.  E-mail messages that are in your regular email but not eBay’s “My Messages” are NOT real.  I can’t say this enough!  If you get email that seems to be from eBay to confirm a purchase you did not make (usually for high end merchandise), or that asks you to click a link and fill in sensitive information – DON’T!  They are engineered to hijack your account or steal money.  Don’t EVER click on any link or respond to such email.  eBay and PayPal NEVER send such e-mail requests.  Further, if you download eBay’s Toolbar with Account Guard (it’s free!), it will warn you that you are about to go to a suspect site.  If you mistakenly click on a suspect link, the eBay toolbar turns red.

13.  Learn about the best way to pay, and the inside scoop on all options of payment to make an educated decision on how you pay online.  Once you win, eBay prompts you through the payment process and sends e-mail messages to both parties.  Payment options, specified by the seller, might include PayPal, credit card, money order, or personal check.

PayPal, (an eBay company), is the site’s preferred method and the most often chosen by buyers.  Using PayPal is fast, easy and safe. Both the buyer and seller must have an account (sign-up is free) at www.paypal.com.  Your account must be linked to a checking account, debit card, or credit card.  Linking to a credit card makes it easiest to get the charges reversed if there’s a problem.  When you pay, PayPal promptly pays the seller, who never sees your credit-card number. Most PayPal transactions are automatically protected for $2,000 if you buy from a seller with a positive feedback rating of 98 percent or higher; otherwise, you’re protected for up to $200.  PayPal offers dispute resolution for deals that don’t go well, too.

As a buyer, using a credit-card to pay assures your liability is limited.  However, not all sellers accept them, and you might prefer not to share your credit card number with strangers.  Some credit card issuers will issue a random number for limited online use.  Check with your credit card company to see if this is a service they provide.

In cases of problems or outright fraud, checks, money orders, and bank-to-bank wire transfers offer you no protection. Further, recovery is difficult or (if I am honest) almost impossible.  Scam artists love money wired via Western Union or MoneyGram.  The seller and your money disappear into the mist quickly and completely.  eBay has banned such transfers, but that hasn’t stopped opportunists from trying to get you to use them.  Typically, the defrauder poses as an eBay member and offers losing bidders a second chance offer to win a similar item by wiring funds directly to them – don’t fall for it unless you are interested in giving money away.

Escrow services (use only those approved by eBay), protect the interests of both sides and are well worth using for big-ticket items.  The buyer pays the service by credit card, check, or money order; the seller then ships the goods.  The money is released to the seller only after the buyer receives and approves the merchandise.  Escrow.com charges a minimum of $25 per transaction.

14.  What to Do If It Still Goes Bad:  START WITH THE SELLER.  Send a polite email to the seller explaining what the problem is.  Stick to the FACTS, don’t accuse, and don’t threaten.  Creating a hostile or defensive seller is contrary to your goal here.  The best chance of solving a problem is in the initial dialogue between buyers and sellers in which they are both trying to reach agreement. 

Having said that, direct negotiation can and does sometimes fail.  In those cases, turn next to the eBay “Dispute Console” which is eBay’s process to facilitate a settlement.   If that fails, you can complain directly to eBay authorities which results in fixing the problem slightly more than half the time.  The MOST effective way to deal with dishonesty on eBay is, sadly, the least used – PayPal disputes.  If you purchased your item using PayPal, file a formal complaint with PayPal. 

Professional, fee-based negotiation service is available through eBay’s  Square Trade which provides limited free negotiation or, for a $15 fee, it will provide the assistance of a professional mediator who looks for a nonbinding solution that’s fair to everyone.

15.  When you find the baddies – REPORT them!  One of the greatest assets eBay has are community members who make it a practice to report the problems, scams and attempted rip-offs and get them OUT of the community as fast as possible.  This action alone keeps the perpetrators from preying on the unsuspecting.  Working together as a community we can keep the site safer.  If you find a suspicious auction, report it via a link at the bottom of every eBay auction.  If you encounter unethical practices, notify the Federal Trade Commission or Internet Crime Complaint Center.