Sunday, October 19, 2008

Bidding Abuses

Many auctioneers complain about snipping as illegal, but it isn’t. There are, however, bidding practices that are considered as illegal and can lead to expulsion from the site.

i) Bid siphoning – It is a practice where another seller outsells you. Suppose Jay is selling an item and the current price is Rs500. You email the bidders with the information that you have the same item and will sell it for Rs450, thus undercutting the seller.

ii) Fake bidding - It is quite common, although it may not be obvious to everyone.
In this the seller gets friends and relatives to bid on the item, either to increase the price or to prevent a sale at a too low price.
Suppose you want to sell an item for at least $500. You put your bidding price at Rs.50.
Then you get your friends and relatives to bid on the item.
The auction sites have no way of knowing whether the merchandise ever actually changed hands. If neither seller or buyer ever complain, they assume all is well.
This method is also used to increase the items visibility by making it a hot item and it receives a favored position at the very beginning of the category.

There are other things that are considered offensive like revealing any information other than e-mail addresses online, sending spam, giving wrong identity details. All these may attract suspension from the site.
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