Risks involved in Ecommerce for Auctions
E-commerce, E-commerce, E-commerce!!! This is the recent buzz of today’s world. Both customers and businessmen are more interested in dealing virtually. Businessmen are choosing to sell their product or services online because, e-commerce saves a lot of cost on setting up an actual office infrastructure. Hiring employees is another headache that businessmen want to get rid of. Customers want to avail product or services through e-commerce sites, as it saves them time and hassle.
Going online involves some risks too. So, like all other product or services offered online, ‘auctions’ too were not meant to be away. The history of auctions goes back to ages. It has always remained popular. More than the need of the good, in earlier times, it was considered to be some sort of tussle of winning the good. With slight changes auctions still are in the rounds and are equally enjoying the popularity.
E-commerce for auctions: Risks for both buyers and sellers:
a) Risks involved for buyers:
Like most other things online, there are some risks associated with E-commerce for auctions. You can face few cases of frauds enlisted below:
Non-delivery: This is perhaps the most common act of fraud when it comes to auctions through e-commerce sites. After you have paid the amount, the product will not reach you. And in most cases there is few things that you can do. Even if you do, the hassles involved might turn you off.
Misrepresented product: What you had seen on the sites and had bid for is not what you get when you open the package. Before you think it is your mistake to have misinterpreted the product, let me tell you that in cases like this, it is often the seller who deceived you and lured you into buying the product.
Hidden costs: To shell out more money from you there are hidden costs which you come to know later. So, beware of this. Know all the policies of the site that you are buying your goods from.
b) Risks involved for sellers:
Non-payment: In many case it might so happen that the buyer do not pay for the product or services. Sellers incur a loss in such a case.
Third party: Often there is a perpetrator, the buyer and an online merchant. The perpetrator buys products from online merchants with fake credit cards. Of course, the customers and the online merchants feel the heat.
Selling goods of black market: selling goods and products of the black market like CDs, DVDs which have been copied violating the copyright acts, may make you face legal procedures. This is applicable to both buyers and sellers. Beware of what you sell and what you buy before transacting. In most cases these also occur due to a third party perpetrator.
Just a little awareness and use of common sense from both the customers and the sellers, will save you from such cases of frauds in buying and selling goods from e-commerce sites at auction.
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