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Consumer Watch: Use Auctions to Save Money on Tech Gear

Photograph: Webb ChappellCamy Ruggiero depends on EBay to feed her technology addiction. The Providence, Rhode Island, resident and computer enthusiast buys and sells tech gear frequently. "I keep finding great deals on EBay for software and hardware that would cost me close to double if I bought the products elsewhere," she says.

On top of her technology transactions, Ruggiero contributes regularly to many of the site's discussion boards, such as the Computer, Networking and I.T. Discussion Board.

Things weren't always so rosy for Ruggiero, however. The first few times that she used EBay to buy tech gear, she got burned: She won an auction for what proved to be a pirated copy of Microsoft FrontPage; then a Palm V PDA arrived DOA; and after a third win, the seller balked at sending her a Palm PDA she had paid for through an escrow service.

Though Ruggiero was stuck with the software, she got a refund for the first Palm unit and canceled the escrow payment for the second. Undeterred by these experiences, Ruggiero resolved to make the auction site work for her. She did some research on EBay's site, talked to other members about how to spot potential scams, and hasn't looked back since. (According to EBay, most transactions are trouble-free. Company spokesperson Jamie Patricio says less than 1 percent of the site's transactions are fraudulent.)

If you're a tech-toy junkie like Ruggiero, you know how pricey the habit can be. EBay can be a great way to get your fix without draining your bank account, you can sell last year's MP3 player, for example, while potentially getting a great deal on a newer replacement.

Of course, you'll want to get a high price for the stuff you're selling, or a bargain if you're the shopper. So here are a few rules for participating successfully and safely on EBay. (Some of these tips cover transactions specific to tech products; others apply to any type of listing.)

Tips for Buyers

What can be better than getting a good deal on a cool gadget you want? Here's how to make the most out of your bids.

Shop around: Before you bid on that new laser printer, do some comparison shopping to make sure the price is right. Check the selling price on the same or similar models being offered on EBay and at other sites, as well as in retail stores. The better sense you have of an item's value, the easier it will be to steer clear of last-minute bidding frenzies.

The high score wins: It seems obvious, but favoring sellers who have high feedback scores is usually best. Read other buyers' comments, which provide much more insight than the numbers alone.

Get the facts: Don't assume that what you think should be included actually is. If you won't even consider a monitor without a DVI port, say, read the description carefully. Not sure? Ask the seller.

Warranty or no warranty? Often, warranties for computers and other tech gear are nontransferable, which means that the almost-new scanner you picked up for a song might not turn out to be such a great deal after all. Some sellers purchase third-party warranties for the items they sell. So if the listing cites a warranty, ask the seller for details about the coverage.

Do a background check: If that digital camera you're eyeing spent its youth documenting volcanic activity at close range, wouldn't you want to know that? Before you buy any second-hand item, get some information on its history.

Many happy returns? Don't buy a tech product unless you know whether you can return it. Does the seller have an explicit return policy? If not, ask.

Ship sensibly: Don't close the deal until you know how much shipping will cost. Most sellers include such charges on their listings. If the fees aren't mentioned, avoid unpleasant surprises by asking first. (And while you're there, keep an eye out for sellers who openly charge unreasonable shipping fees.) For superheavy items, like large-screen TVs, buying locally makes more sense. If you want to insure the item, work out the terms with the seller.

Protect your payment: Ready to fork over your cash? PayPal, which EBay owns, is the standard payment option for EBay users. Though it isn't without its share of glitches, see last February's "The Problem With PayPal," for example, PayPal is one safe way to complete a transaction. Avoid sellers who try to convince you to complete the transaction off Ebay, the site prohibits this, so make sure you report such efforts to the company. Plus, stay away from sellers who ask you to wire cash directly. Finally, consider using an EBay-approved escrow service, such as Escrow.com, for purchases over $500 or so.

Tips for Sellers

Naturally, you want to get a sky-high price for the gear you're selling. Here are some guidelines for smooth sales.

Be a pack rat: Think of your buyer. He or she will want everything to be included: cables, software and registration keys, manuals, setup poster, batteries, even original packaging, as if the item were brand new. So the next time you set up a new PC, for instance, keep everything in case you might want to sell it some day.

Compare similar items: Check out listings for the same or similar items to see how they're doing, before you list. To see completed listings, click Advanced Search from any listing page, select Completed Listings Only, and enter the product or category you're interested in.

Choose keywords carefully: Use brand and model names and numbers when you write the title for your item listing.

Be descriptive and honest: Sure, omitting the fact that the <Shift> key on your laptop's keyboard sticks is tempting. But resist the temptation and fess up. If you are selling a PC and would like to provide configuration details, give the PC World PC Profiler utility a try; you'll find it on EBay here.

Get visual: Take lots of photos and show the product from all angles. Include photos of the flaws you describe, too. The more info you provide, the less time you'll spend responding to e-mail queries.

Timing is everything: Find out when the next version of your product will appear. For example, if you want to upgrade your cell phone, listing last year's model before the latest edition hits the streets will probably yield a better price.

Can't sell? Recycle: EBay's Rethink Initiative (rethink.ebay.com) can help you locate resources for selling, donating, or recycling your unwanted computers, cell phones, and other electronic devices.

Next time your eye starts wandering toward the latest MP3 player, go to EBay. If you play your cards right, you might grab a great deal, especially if you can unload your old gear while you're at it.

Anne Kandra is a contributing editor for PC World. You can send her e-mail at consumerwatch@pcworld.com. To read previously published Consumer Watch columns, click here.

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