onlineauctions

This Masterclass tutorial will take you through the steps of purchasing goods through the online auction house Ebay.

Part 1: Auction basics
Before we start bidding for stuff online, it's best to explain how the bidding process actually works otherwise, when we start to bid online, it will get a bit confusing.
This is how an auction works.

Mr. Smith places his car in an auction with a reserve price of $500 He puts the starting bid at $10, with $10 increments

The reserve price is the minimum price that Mr. Smith will sell the car for. People bidding on the car will not see what the reserve price is. If the final auction price is below the reserve price, he doesn't have to sell the car. Also, it's worth noting that a seller doesn't have to place a reserve price on an item.

Mr. Jones sees the auction and decides to place a maximum bid of $550

The $550 is the maximum Mr. Jones is prepared to pay for the car. As this is above the reserve price, Mr. Jones would be the highest bidder and win the auction if no one else has bid on the car.
The bidding has started now and the bidding on the car is currently $10 as it is the first bid.

Along comes Mr. Blue, and decides that he will pay a maximum of $300 (below Mr. Jones bid)

As soon as he places his bid, he is told that he has been out-bid

The bid amount on the car now stands at $300

If Mr. Blue wants to, he can enter in a new bid amount

If Mr. Blue places a bid above the current highest bidder (Mr. Jones) an email will be sent automatically to Mr. Jones telling him he has been out-bid.

If the auction finishes below Mr. Jones maximum of $550, he has to pay the finishing bid NOT his maximum bid.

That is the basics of bidding, but more information on how bidding at Ebay can be found at the following link: http://pages.ebay.com/aw/nut-bid4.html

Point your browser to www.ebay.com

You will notice that Ebay has around 2 million items up for auction. This is one of the biggest and best online auction houses.
The site is very easy to navigate round. On the left hand-side of the screen you have a list of different categories, and you can look for an item using the search tool.

Now would be a good time to browse through Ebay to find something you'd like to bid against.

Toppers Tip: You can't retract a bid, so don't be rash

Part 2: Bidding online
What's integral to Ebay working is that people are honest. If they're not honest, people won't send you the goods if you've paid for them, or they won't send you the money if they are the highest bidder. Ebay combats dishonest people by using a feedback rating system.

Find an item on Ebay that you would like to bid on and click on it

Now you will see the current status of the item. You will see what the current bidding stands at, how many items are being sold, how long the auction has left to run, how many bids have been placed and next to the seller's name, you will see a number. This is the seller's feedback rating. This feedback system applies to buyers too.

Click on the feedback number to see the feedback details

When a person deals with another person, they should leave feedback for each other. The higher the POSITIVE feedback rating a person has the better. So be aware of their rating before dealing with them.

Click the back button in your browser to return to the previous screen

Before you can start bidding on Ebay, you've got to register.

Press Ctrl + N to open a new browser window

Go to the following URL: http://pages.ebay.com/aw/registration-show.html

Fill out the registration form

Part 3: Making a bid
It's very important that you fill out the registration details thoroughly and honestly, otherwise you won't be allowed to bid.
Once you've filled out the registration details, you will receive an email with your username and password. Without these, you won'' be able to bid on Ebay.

Return to the page with the item you want to bid on

Scroll down the page and you'll see a description on the item (sometimes with an image too)

Scroll down to the bottom of the page to the bidding section

Here you will see what the current bidding price is, the bidding increment and the minimum bid.

In the text box, enter in your MAXIMUM bid.

This is the maximum amount of money that you are prepared to pay for the item. You can at this point cancel the bid by using the back button.

Click the 'review bid' button to continue.

Next, fill out your username and password in the correct boxes

Click the 'place bid' button the make a bid
If someone previously made a higher bid, you will automatically be told and you can make another bid if you like. You will also receive an email telling you of your bid.
If someone makes a higher bid at a later date, you will get an email informing you that you have been out-bidded. All you have to do now, is wait for the auction to end.
Toppers Tip: Get International money orders at the Post Office