The following are tips for safe buying from auction sites:

1. Check out the seller before you bid. Check the feedback section with comments about the seller based on previous transactions. Keep in mind that glowing reports might be "planted" by the seller and negative comments could be from a competitor.
   
   Other sources of information are the state or local consumer protection agencies and Better Business Bureaus where the seller is located (your local agencies and BBBs can give you that contact information.) A track record of unresolved complaints is a good warning sign, but a clean complaint record doesn't always ensure that your transaction will go smoothly.



2. Winning an auction at an extremely low price in relation to the fair market value is a warning sign. How will the seller profit from the sale if the price is questionably low? Could the item be stolen? Does the seller have any intent of delivering the item?



3. Be careful if the seller is a private individual. Many consumer protection laws and government agencies that enforce them don't deal with private sales. Others will only if there is criminal fraud involved. If you have a problem, it could be difficult to resolve.



4. Be especially cautious when dealing with buyers or sellers in other countries. If you have a problem with an auction transaction, the physical distance, difference in legal systems, and other factors could make resolving it even more difficult.



5. Get the name and contact information of the company or individual. The name, physical street address, and email address or phone number are helpful in checking someone out and following up if there is a problem. Don't do business with anyone who refuses to provide that information.



6. Be wary of claims about expensive collectibles. Since you can't examine the item or have it appraised until after the sale, don't assume that claims about its condition or value are true or that photographs are accurate. Print out and save the description and any photos of the item to document the claims that were made about it.



7. Ask about delivery, returns, warranties, and service before you pay. Get a definite delivery time and insist that the shipment is insured. Ask about the return policy. If you're buying electronic goods or appliances, find out if there is a warranty and how to get service.



8. Avoid cash payments. For the buyer, a seller requesting cash or a wire transfer can be a danger sign of fraud. For sellers, accepting cash makes it difficult to prove how much was paid if there is a dispute at a later date.



9. Payment by credit card can protect both the buyer and seller. Credit card payment protects the buyer because you can dispute the charges if the goods are misrepresented or never delivered. For sellers, payment by credit card is quicker than waiting for a check or money order in the mail and avoids the problem of bad checks.



10. Seriously consider using an escrow service. Escrow services are another good payment option. For a small fee, an escrow service holds the buyer’s payment and forwards it to the seller upon the buyer’s receipt and approval of the item within an agreed upon inspection period.
    
    For buyers, escrow services can help ensure that they get what they pay for. Sellers may find escrow services less expensive than participating in the credit card payment system, especially if the buyer pays the fee, and they avoid the problems of bad checks or stolen credit cards. Escrow services may also help both parties by "refereeing" disputes. Ask if the service is licensed and bonded and how you can confirm that with the appropriate agency.



11. Buyers should report suspected fraud to law enforcement agencies.