How to Save Money by Buying at Online Auctions

Shopping at online auctions can be a great way to save a little money. Online auctions offer a huge variety of purchasable goods for negotiable prices. But online auctions differ from real-world auctions in some key ways. You use your mouse instead of a paddle, for example, and you can't see the auctioneer. Follow these steps to get great bargains and avoid pitfalls when buying from online auctions.

Difficulty: Moderately Easy

Instructions

1. Search the Internet for a popular online auction. There are many to choose from, so doing a little research can go a long way. Most online auction sites require you to register as a member to bid and buy online, but registration is usually free.

2. Search for an item you want to purchase by entering the name of the item into the auction's "Search" bar. You'll see a list of items to browse through. The more specific you are in your search request, the more focused the list will be.

3. Filter through the list of matching items and find the lowest asking price. Compare this price to the price you would pay for the same item at any retail store. Some auction sites will allow you to purchase the item right away at a "buy it now" price, but to get the lowest price you usually have to place a bid on the item.

4. Decide what price you are willing to pay for the item. By offering a price that is below what you would pay in a retail store you are making an attempt to save money. Your bid will have to be higher than any current bid, or minimum bid price, so be sure that you are still getting a low price after meeting these standards.

5. Place your bid and monitor the auction. Most online auction sites will give a time and date when the auction for any particular item will close. If you are the current high bidder at that time, you will win the auction for that particular item.

6. Pay for the item you won by following the payment instructions provided by the online auction site you chose. Voila! You purchased an item you wanted, and saved a little money, all without leaving the comfort of your home!

Tips & Warnings

• Before bidding on an item be sure to add the asking price together with the price it will cost for shipping and handling to be sure you are getting the lowest price, and saving the most amount of money.
• Many auction sites will allow you to sign up for email notification of the progress of an auction, or will let you set a maximum bid amount and automatically raise your bid to that point. These can be good ways to stay on top of the bidding without being glued to the site all day.
• Watch out for online auction scams. Reputable sites like eBay do their best to monitor sellers, and control online payment through strictly regulated and secure systems like PayPal. Don't give your credit card information by email or any other insecure method.
• Use a credit card that allows you to cancel purchases in the event of fraud. Buying by personal check or money order, though allowed by some sites, is very risky.