You've heard about eBay but what is it really all about?

Basically eBay is an online auction house. The main difference between eBay and a true auction is that the auctions close at a fixed time. In a true auction the bidding doesn't stop until everyone reaches their limit. On eBay you enter your highest bid and the eBay computer bids automatically on your behalf until it reaches your limit. If you get outbid you can choose to increase your limit (bid again) or let it go. The problem with this system is that experienced eBay'ers have learnt to wait until the final seconds of the auction and then bid. If you want the best bargains, that's the way to do it and you've got to be quick. However there's plenty of less popular items up for auction that you have a good chance of winning and still get a bargain.

If you win an item on eBay you then pay via any of the methods accepted by the seller. As soon as they receive the finds they send the goods. This opens up the possibility of fraud and various other bad behaviour. eBay has policies and dispute resolution systems in place to prevent this but it's still very much buyer beware. Always check out the sellers trading history before bidding especially any negative feedback they have received. Also do your homework and make sure the item you are buying is really a bargain. Very often items sell for more than retail price because people get caught up in the bidding.

Selling on eBay is a good way to get rid of items you no longer need and make a few dollars. It also means you don't have to stay home all day for a garage sale! Selling is also prone to fraudulent transactions but provided that you wait until the money is in the bank before you post the item you should be fairly safe.

This has been a very brief overview of eBay, for more information visit eBay Australia, just click on the eBay pictures on this page.*

* Epsoft Computer Services may receive a small commission if you become an active eBay member from these links.