Guide to Online Auctions and Auction Shopping on eBay

Have you noticed that whenever you open a newspaper, watch the TV or have a conversation, people seem to be talking about eBay? If you've never used it and you've no idea what it's all about, then the chances are that you're starting to feel a little left out. But don't worry! This email contains everything you need to know about the basics of bidding and buying on eBay.

eBay is an online auction website - and not just any auction site, but the biggest one in the world. If you know how an auction works, then you already know how roughly eBay works. Someone adds something they want to sell to the site, and then buyers come along and place bids on it. The highest bid wins the item! It's that simple.

eBay being an online auction makes a big difference, though. Buying and selling are not reserved for any elite. eBay accept almost any item, no matter how small, and will then advertise it on their sites all over the world. It's a powerful combination of an auction and a slightly chaotic marketplace.

Bidding is when you say how much you will pay for an item in an auction. Bidding on eBay, however, doesn't work in exactly the same way as a normal auction, at least in theory. On eBay, you tell the site what the maximum you are willing to pay for each item is, and then eBay places the bids on your behalf. That means you could say you were willing to pay up to $100 for something and only have to pay $50, if that was the highest maximum bid anyone else placed.

It's not as complicated as it sounds - the best way to get used to it is to give it a try. First, the best thing to do is to go to the eBay website designed for your country. If you don't know the address for it, just go to www.ebay.com and it will tell you there. Now, on the front page you should see a big box marked "search": just type in anything that you'd like to buy there.

Wasn't that easy? Now you should have a list of items for sale in front of you, along with how much people are currently bidding for them and the time when bidding ends for each item. If you click one of these, you can read the description, and then - if you're happy with the item and happy to pay more than the current highest bidder is - you can bid!

Go ahead and scroll down to the bottom of an item's description page, and type the maximum you are willing to pay (your maximum bid) into the box. Then simply press the "place bid" button - you will need to sign in once you press the button, or go through a quick registration process

eBay isn't just an auction and a marketplace: often it can feel quite a lot like a game. Like any game, you can get ahead if you think strategically, using your head to outwit the other buyers and get the best price. Here are a few things you can try.

Shop in the Summer

This is simple, but effective. Summer is the quiet season on eBay - almost everything sells for less. While everyone else is out enjoying the sun, invest a little time to find some real bargains.

Beat Them by a Few Cents

Outbid people by a few cents instead of a few dollars - if they don't check back before the auction ends, then you will be the winner. To avoid people using this tactic on you, though, always bid strange, hard-to-guess amounts instead of round numbers.

Play Dirty

If you know when the auction ends, you can get in there at the very last second and outbid your rivals. The chances are that they won't have the time to sit in front of the auction waiting for it to end - as a rule, he who stays wins. If someone else does retaliate at the end of the auction, though, try not to get carried away in those last few seconds and end up paying too much!

Take Risks

This is a strategy for the braver eBay buyer. All of the advice you will see for eBay beginners tells you to buy items that have good pictures, clear descriptions, trustworthy sellers and all the rest. If you're brave, why not take a risk and do the exact opposite?

Many buyers won't want that item from the seller with a feedback rating of 5, no picture and a one-line description. If you take a calculated risk and bid anyway, you might be able to make a tiny bid and win by default. There are people on eBay who make their living from winning auctions like these, taking good pictures of the item, writing a good description and then reselling it at a huge profit. Be careful, though: do this for long enough, and you will inevitably lose your money at some point. It's especially unwise to try it with very high-value items.

Avoid Bidding Wars

There are few things on eBay that are so rare that you'll only see them once and never again. There are usually quite a few sellers who have an item. What's more, they will generally have more than one to sell, even if they haven't listed them all at once. Always check your seller's history to see whether they sell your item all the time - and if they do, then wait for the next one instead of bidding to the skies.

If you know a few tricks, you can quickly find what you're looking for on eBay. Here are a few golden rules.

Be specific: If you're searching for the first edition of the original Harry Potter book, you'll get further searching for 'harry potter rowling philosopher's stone first edition' than you will searching for 'harry potter'. You'll get fewer results, but the ones you do get will be far more relevant.

Spell wrongly: It's a sad fact that many of the sellers on eBay just can't spell. Whatever you're looking for, try thinking of a few common misspellings - the chances are that fewer people will find these items, and so they will be cheaper.

Get a thesaurus: You should try to search for all the different words that someone might use to describe your item, for example searching for both "TV" and "television", or for "phone", "mobile" and "cellphone". Where you can, though, leave off the type of item altogether and search by things like brand and model.

Use the categories: Whenever you search, you'll notice a list of categories at the side of your search results. If you just searched for the name of a CD because you want to buy that CD, you should click the "CDs" category to just look at results in that category. Why bother looking through a load of results that you don't care about?

Don't be afraid to browse: Once you've found the category that items you like seem to be in, why not click "Browse" and take a look through the whole category? You might be surprised by what you find.

Few people realise just how powerful eBay's search engine is - a few symbols here and there and it'll work wonders for you.

Wildcard searches: You can put an asterisk (*) into a search phrase when you want to say "anything can go here". For example, if you wanted to search for a 1950s clock, you could search for "clock 195*". 195* will show results from any year in the 1950s.

In this order: If you put words in quotes ("") then the only results shown will be ones that have all of the words between the quote marks. For example, searching for "Lord of the Rings" won't give you any results that say, for example "Lord Robert Rings".

Exclude words: Put a minus, and then put any words in brackets that you don't want to appear in your search results. For example: "Pulp Fiction" -(poster,photo) will find items related to Pulp Fiction but not posters or photos.

Either/or: If you want to search for lots of words at once, just put them in brackets: the TV example from earlier could

Over the years, eBay has introduced all sorts of different auction types, in an effort to give people more options when they buy and sell their things. There are many people who don't like the idea that their item might sell for a far lower price than they intend. Equally, there are people who have hundreds of the same item and don't want to sell them individually.

Normal Auctions

These are the auctions everyone knows: you bid, others outbid you, you outbid them, and the winner gets the item. Simple.

Reserve Auctions

Reserve auctions are for sellers who don't want their items to sell for less than a certain price - a concept you'll know about if you're familiar with real auctions. They work just like normal auctions on eBay, except that you will be told if your bid has not met the reserve price set by the seller. If nobody meets the price, then the auction is cancelled, and the seller keeps the item.

These auctions by looking out for 'Reserve not met' or 'Reserve met' written next to the current bid on an item's description page.

Fixed Price ("Buy it Now") Auctions

Buy it Now auctions can work in one of two ways. A seller might add a Buy it Now button to a normal auction, meaning that you can choose either to bid normally or to simply pay the asking price and avoid the whole bidding process. Some sellers, though, now cut out the auction process altogether and simply list all their items at fixed price. Recently, eBay added a twist to fixed price auctions: the 'best offer'. This means that you can negotiate a price to someone who offers their items using Buy it Now, which could be a great way to get a bargain on things that don't seem to be selling.

Fixed price auctions have a little 'Buy it Now' logo either next to or instead of the current number of bids on the search listings page.

Multiple Item ("Dutch") Auctions

These are auctions where a seller is selling more than one of a certain item. Dutch auctions can be done by bidding. Buyers bid a price and say how many items they want, and then everyone pays the lowest price that was bid by one of the winning bidders. If you have trouble getting your head around that, then don't worry - everyone else does too! These auctions are very rare.

What is more common is when a seller has a lot of one item, and lists it using a combination of two auction types: a multiple-item fixed price auction. This just means that they say how many they have, and offer them at a fixed price. You can enter

You will often find yourself facing the choice of whether to pay a fixed price or keep on bidding. This choice might be presented to you in a single auction, or you might be choosing between different auctions of the different types. So should you use that "Buy it Now" button or keep on trying to outbid everyone else? It's all a question of weighing up the advantages and disadvantages.

Buy it Now

Advantages:

When you use Buy it Now, you know the asking price and you can take some time to decide whether to pay it or not - you can even negotiate. You don't need to keeping your eye on the auction, or get caught up in the last-minute bidding frenzy that is now inevitable on any popular item. Not only that, but the seller will be happy to get a fixed price for their item, and they're likely to nicer to you than usual. Some sellers can be a little resentful when they feel that you got a little too much of a bargain on their item.

Disadvantages:

You will almost certainly pay more for the item, especially with more expensive items. Also, it takes some of the fun out of eBay. Aren't you there for an auction, after all? If you want to pay a fixed price then there are thousands of online stores you could be visiting. It's like pressing 'collect' instead of 'gamble' on a fruit machine: it's the boring option. But then, maybe that's what you want.

These rules are relatively constant: there are few times when using Buy it Now would allow you to get something cheaper, or when bidding would be an easier way to do it. In the end, as with so many things in life, it's a simple question of price vs. convenience, and it's up to you.

There are times when the strategic use of Buy it Now can be a useful tool to help you outwit your competition. If the current bid is almost as high as the Buy it Now price, then why bid higher and keep the contest going? Clicking that button is a no-brainer. The same goes for times when a seller has set the Buy it Now price only slightly higher than the starting price for bids. Why bother to go through all the bidding hassle?

You might also find there are times when you should leave the Buy it Now button as a last resort: it can be a useful way of ending last-minute contests with a decisive 'this is mine' gesture.

There are all sorts of tricks you can use on eBay, if you want to get ahead of the game. Remember that most buyers on eBay are casual, and are not ebay pros: a little knowledge can go a long way in getting you an advantage.

Some auctions get hundreds of bids, but some go much more slowly, getting only a few bids or even none at all for days. Auctions are generally much slower during the summer months compared to winter. There are a number of ways that you can take advantage of slower auctions to get the best price.

Wait to Bid

If you bid, then everyone can see you're interested - and that might make them interested too. Leaving the item alone for as long as you can bear will make it look less popular, and keep the price down so you can come in at the last minute and get a bargain.
Make an Offer

If the seller is selling an item using 'Buy it Now' and it still hasn't sold when the auction is about to end, use eBay's "Best Offer" service to make them an offer on it. The chances are they've listed the item two or three times before, and they'll be so annoyed at the prospect of re-listing it yet again that they'll accept your offer just to get rid of the thing.

Conspire with Other Buyers

You might not have thought of this, but if there are two auctions for the same item and only you and one other buyer are bidding, why not get together and work out a 'you take this one and I'll take that one' deal? This avoids you raising the price on both auctions just to get one each. If you make a few friends, you can even work together on auctions long-term, taking it in turns to bid.

Be Snobbish

Send the seller emails asking questions about the condition of the item, and making it very clear that you are a discerning buyer and will only accept things of the highest quality. This will make them feel better about selling you their item for less.

Don't Feel Guilty

There really are too many sellers on eBay now, to the point where you can get common items at very low prices. Long-term, this will probably force those sellers out of business, but that's the way a market works - it's supply and demand.

Buy in Bulk

When auctions are slow, many sellers will have had the same stock for a long time. If you offer to take ten things off their hands all at once then you can almost name your price - the chances are that they'll fall over themselves to give you a good deal. If you come back again and buy another ten items then they'll love you even more.

The longer you spend on eBay, the more experienced you'll become - and the greater the chances are that you'll stumble across an auction for something very odd, and quite unexpected.

Most people do far more shopping in the holiday season than they do for the rest of the year - why not do it on eBay? If you know what kind of thing your friends and family like then eBay's categories are ideal places to get ideas. Plus, you won't have to fight your way through the holiday rush when you're getting everything shipped to you at home!

Buying Presents for People

Here's how I do it: think of the last thing the person you're buying a present for bought for themselves. Type it into eBay's search engine. Now take a look at which category it's in, and click the link to look at everything in that category.

You now have a huge list of things that they will probably be happy to receive - and if you know them well, you should have no trouble finding something really special.

Look at Their eBay Histories

If the people you're buying presents for use eBay, and you know their eBay username, take a peek at what they've been buying to see what they might want. To look at a user's history, just click 'Advanced Search' on the main page, then Find a Member on the left-hand menu. Type in their username and you should reach their user page, complete with all the item numbers of things they have bought. Just paste any item number into the eBay search box to see what the item was. That should give you a few ideas!

Shop in Advance

It's a bad idea to use eBay for your holiday shopping at the very last minute - prices will be high, and items might not arrive in time. Every year there's a present that children want so much that all the shops sell out, and it starts appearing on eBay at a premium. Parents then pay hundreds of dollars and still don't get one in time for the big day. Don't fall into this trap.

Remember It's Silly Season

The holiday season is peak time at eBay - loads of people are there, and they're often inexperienced, bidding things up far higher than they should. Try not to pay too much for an item just because it's the last one that would turn up in time, or because everyone else is bidding too high. You should always know when to cut your losses, stop bidding and just go get something from a store instead.

Have Fun!

Don't take eBay too seriously - treat it like a game, and don't be too disappointed if you lose. It can sometimes feel like gambling, but when you get that really rare and special thing in the mail, it's all worth it!