NFIB

Save a Bundle on Computer Equipment With Online Auctions
05/ 03/ 2004


I just got off the Internet, and my head is buzzing with the possibilities available for buying in expensive computer equipment through online auctions. The options are almost limitless: CPU's, monitors, modems, even mouses and printer cartridges, all for a fraction of normal price. Sound too good to be true? It's not. People are buying and selling computer equipment online every day, although there are some specific dangers to watch out for. In today's workshop, Jeffrey Moses gives tips to help you navigate through the world of online auctions.

Equipment is available through any of the online auction sites, including among others: www.EBay.com(by far the largest), www.Yahoo.com, www.Amazon.com, www.Lycos.com, onSale.com, uBid.com, Bid.com, auctionaddict.com, webauction.com, etc. There are literally hundreds of auction sites available. I typed in 'online computer auctions' on Alta Vista and was sent to more than 100 pages of auction sites. Some of the larger sites were listed in a pull-down menu at the top of the first page.

Visit the site of your choice, click on 'Computers, and you'll be sent a choice of CPU's, peripherals, cartridges, etc. Bidding is easy. Just read the instructions for the site. Usually there's an information box at the bottom of each product window that lets you bid. And of course you can see how much other bidders have offered and when the auction will be over.

Are there really great buys available? Definitely, but you may have to look through quite a few sites and a lot of different types of equipment before finding just what you want. Some of the sites don't designate the computer or peripheral by brand name on their main listing. They just say, for instance: 'Intel 450 CPU. 'You have to click on the item and wait for it come upon screen before finding out the brand. If you want to stick with a certain brand of computer, consider visiting the www.Excite.com auction site. It lists by brand name, and contains equipment by HP, Dell, etc.

Are you worried about the reliability of the company you're buying from? You should at least be concerned, because you're not dealing directly with the auction house, but with the seller of the equipment. Before bidding, always check out the 'Feedback Profile' of a seller. This lists letters by previous buyers, and can tell you if people have had a lot of trouble with a certain seller.

The Internet's ability to regulate businesses hasn't caught up to some of the fly-by-night sellers using even the most reputable auction Web sites. Staying with better-known, proven companies could save you money and frustration.

Remember: when making a bid, the second you post it to the site, you've entered into a binding legal contract. Don't bid on a lark. Make sure you've done your research and are prepared to pay for and take delivery of the item.

It's possible that you can find better deals on some smaller sites because the larger sites have so many bidders. However, you'll have to search harder to find what you want.

A lot of equipment auctioned off is refurbished, so there isn't a warranty. New equipment and software should have a warranty, however, so be sure to look for one before bidding.

Escrow services are available to make sure that the seller doesn't actually receive payment until you're satisfied with your purchase. This can protect you against paying for faulty equipment or paying for equipment you never receive. EBay uses i-Escrow's service. i-Escrow's fee is based on the amount of the transaction as follows: 6% of transaction up to $500,$30 plus 5% of transaction over $500 for transactions from $500.01 to $2,500, etc.

If you have difficulty with equipment or delivery as a result of participating in online auctions, here area few things you can do:

1. Immediately E-mail or call the auction site's customer service or help department.

2. File a complaint with the National Fraud Information Center: www.fraud.org.

3. Contact the police and/or consumer protection office in both your state and the state of the seller(not the state of the auction site itself).

Have fun. And good hunting!

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