eBay the the Smart Way Fourth Edition Other Books by Joseph T. Sinclair eBay Business the Smart Way, Second Edition eBay Motors the Smart Way eBay Global the Smart Way Building Your eBay Traffic the Smart Way eBay Photography the Smart Way eBay the Smart Way Selling, Buying, and Profiting on the Web’s #1 Auction Site Fourth Edition Joseph T. Sinclair American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. Special discounts on bulk quantities of AMACOM books are avail- able to corporations, professional associations, and other organiza- tions. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent pro- fessional person should be sought. Library of Congress Cataloging-in-Publication Data Sinclair, Joseph T. eBay the smart way : selling, buying, and profiting on the web’s #1 auction site / Joseph T. Sinclair.-- 4th ed. p. cm. Includes bibliographical references and index. ISBN 0-8144-7289-3 1. Internet auctions. 2. eBay (Firm) I. Title. HF5478.S48 2005 381’.177--dc22 2005002340 CIP © 2005 Joseph T. Sinclair. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10987654321 To my grandfather, Joseph Treble Sinclair, who was a master of com- merce in Detroit in the first half of the twentieth century. And to my father-in-law, Ollie Jack Wallin, who was a master of retail in Oklahoma City during the second half of the twentieth century. This page intentionally left blank Contents Acknowledgments ....................................................... xvii I. Introduction to eBay ............................................... 1 1. Introducing eBay .........................................................3 Markets ....................................................................................6 A Terrific Place to Shop ......................................................15 What’s Up? ...........................................................................16 Other Books ..........................................................................17 Final Word ............................................................................18 2. Buyers’ Opportunities ................................................17 Individuals ............................................................................18 Risk ........................................................................................20 Transaction Overhead .........................................................21 VII VIII CONTENTS Rent or Buy at Auction? ......................................................23 Summary ...............................................................................23 3. Sellers’ Opportunities ................................................25 Individuals ............................................................................26 Retailers .................................................................................28 Risk ........................................................................................31 Transaction Overhead .........................................................32 Summary ...............................................................................35 II. Using eBay ..........................................................37 4. eBay Basics ...............................................................39 Community Values ..............................................................40 User Agreement ....................................................................40 Trust ......................................................................................42 Navigation ............................................................................42 Preparation ...........................................................................50 Registration ...........................................................................51 Auctions ................................................................................54 Gallery ...................................................................................62 After the Auction ..................................................................63 Escrow Services ....................................................................64 Wanted Page .........................................................................65 Researching an eBay User ...................................................65 Researching Market Value ...................................................66 Representing Yourself ..........................................................67 Security ..................................................................................70 Community ...........................................................................73 Education ..............................................................................76 eBay Customer Service ........................................................76 CONTENTS IX Charity ..................................................................................79 Summary ...............................................................................79 5. Buying .......................................................................81 Bidding ..................................................................................82 After Your Bid ......................................................................90 Optional eBay Bidding Features ........................................92 Illicit Merchandise ...............................................................98 Summary .............................................................................100 6. Selling .....................................................................101 Sellers (Auctioneers) ..........................................................102 Rating the Condition of the Item .....................................106 Entering an Auction ..........................................................109 Authentication and Other Protections .............................113 After You List the Auction ................................................118 When an Auction Is Not a Sale ........................................120 Summary .............................................................................120 7. Feedback: eBay Reputations ...................................121 eBay Feedback System .......................................................122 It’s Your Reputation ...........................................................133 It’s Their Reputation ..........................................................135 How the System Works .....................................................137 Liability for Defamation ....................................................140 Evaluating a Person’s Reputation .....................................140 SafeHarbor ..........................................................................141 Conclusion ..........................................................................141 8. Reporting and Remedies .........................................143 Most People Are Honest, But … ......................................144 Negotiate .............................................................................146 X CONTENTS Remedies .............................................................................147 Collecting a Judgment .......................................................159 Prevention ...........................................................................159 Forget It ...............................................................................160 eBay Offenses .....................................................................160 Verified Rights Owner Program .......................................163 Summary .............................................................................163 III. Bidding Strategies ............................................165 9. Timely Bidding ........................................................167 Realities ...............................................................................167 Strategies .............................................................................169 Tactics .................................................................................177 Organization .......................................................................194 Summary .............................................................................194 10. Bidding Systematically ..........................................195 Guidelines for Safe Bidding ..............................................195 Follow Up ...........................................................................197 Summary .............................................................................199