With the Internet marketplace explosion in recent years, it's easier than ever to compare prices on various products in order to make a knowledgeable buying decision. Unfortunately, it's also easy to get ripped off. For the savvy consumer, less-regulated online marketplaces such as eBay or www.half.com can provide the same product for a low price.
eBay and other auction sites are possibly the most dangerous places to buy online if you're not careful. They take no responsibility for the accuracy of a product's description or for any of the actions of the buyers and sellers - if sellers ship damaged or defective items, the buyers have little legal recourse against them.
One way eBay tries to solve this problem is through an interactive feedback system, where buyers and sellers can leave positive messages about a pleasant transaction or negative messages about deceptive members. The feedback comments and overall rating (the total number of positive, negative, and "neutral" comments) for a particular member can be accessed by anyone who is considering a transaction with that member.
Another way to avoid getting ripped off on an auction site is to use an escrow service, such as www.escrow.com. Escrow companies serve as "middlemen" by holding the buyer's payment until he or she has received and inspected the merchandise. If the buyer is satisfied with the product, the escrow service will release payment to the seller. Otherwise, the buyer can send the product back to the seller and receive repayment from the escrow company.
A safer way to buy online while still getting great prices is to frequent merchants that specialize in selling pre-owned products, such as half.com. The merchants typically guarantee the quality of their items to a degree, but if anything goes wrong after you buy, they do not offer any warranties.
Finally, the big names like Amazon.com form the safest (and most expensive) category of online buying. They give you new products, return policies, a reputable dealer, the whole nine yards... but you might have to pay a lot for it.
The Daily has been tracking four eBay auctions during the past week in an attempt to determine the benefits (and consequences) that come with online bidding. Here's what we found.
Madden NFL 2001 for Playstation 2
This game started out with an asking price of $9.99 from a seller boasting over 100 positive feedback comments (and no negative ones). The item was described as "opened but in mint condition." There were 17 bids; the final one went for $35.50.A comparison search on www.mysimon.com, which uses an inventory database of both new and pre-owned merchants, revealed that the lowest price it could find was $40, pre-owned but still sealed, at half.com. www.toysrus.com (operated by Amazon) wanted $49.99 for a brand-new game.
The bottom line:
The eBay seller had a reputable standing in the buying community, and was selling the game for about $15 less than Toys R Us. Although the item was used and thus possibly damaged, the feedback rating was so high that there was a poor chance of receiving bad merchandise.
<I>The Big Lebowski; DVD version
The seller did not set a mandatory minimum price on the movie, so the first bid came in at $0.07. The seller's rating was through the roof, having received over 3,000 positive responses since becoming a member and only one negative response within the past six months. The movie was new and sealed, and the auction closed at $17.A quick search of www.buy.com and Amazon.com revealed lower prices than the eBay auction, however - Amazon.com offered it for $15.99 and Buy.com only wanted $12.99 for the movie.
The bottom line:
It pays to do a little research before simply assuming that you can get something cheaper at an auction. Always check the retail price for a frame of reference.
1 ticket to a Weezer concert at the Roseland Ballroom, NYC
Online auctions are probably the only places on the Internet where you'll find items like this - they're definitely not reselling concert tickets at Amazon.com. The bidding started at $1.00 and closed at $133.50. The seller's feedback rating, while consistently positive, only had seven responses. This is typical of illegal auctions (as specified in eBay's rules, as well as being considered scalping in New York state), since it doesn't take eBay too long to find illegal sellers. The sellers, therefore, don't have much time to build up a decent rating.The bottom line:
This is a high-risk transaction, since you're essentially buying a scalped ticket, but it might be your only way to get into the show...
Wizard hat worn in the upcoming Harry Potter movie
Once again, it's hard to find this kind of thing anywhere else. The bidding's not officially over yet; you can still buy the prop if you're so inclined. Of course, the price was $1,025 at press time. The seller has received over 100 positive responses with a single negative response during the past six months. The hat also includes a certificate of authenticity.The bottom line:
Relatively low-risk, especially if you use an escrow service. There's no basis for comparison, though. If you think a couple thousand is a good price for a movie prop, then it's probably a good buy.
