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This mainly applies to overseas sellers, where they may be based in HongKong, China, etc.

You have all seen the auctions where a say, mp3 player is on offer, Buy-it-Now for 99p. When it Retails at £45. Seems like a bargain!!

BUT! the postage cost is £30. This makes the mp3 player just abit cheaper at £30.99.

The reason Sellers do this is for Three reasons.

  • Firstly, the starting price of 99p means that they pay a minimal fee for placing the auction on ebay. A fraction of 99p as regard to £30 they should have listed it as.
  • Secondly,  when it ends, they also pay a minimal fee classed as a final value fee to ebay. Fair enough, they have worked a way around of placing auctions cheaply on Ebay and cutting costs of placing them on.

The Third Reason is explained here-

  • It arrives all safe and quickly. You get it all set up and get it ready for testing. But there is a problem. It doesnt work. You have two options, you either send it back to China/Hong kong at your OWN expense, which can be expensive. And let them send you a replacement.(More than likely to be broke again)

Or you file a claim, claiming the good were faulty. This process involves you sending the goods back anyway so you have to fork out for the shipping fees. The seller is not entitles to compensate you on this so you lose out. Also, as the item was ONLY 99p, the MAXIMUM claim you can put in for the damaged goods is 99p and not the £30 included for postage.

Therefore these sellers can easily defraud you by sending you faulty goods knowing full well that if you make a claim, they will keep the full £30 postage money and will only lose the 99p, effectively still making money.

This is the reason you have to be very careful when bidding/buy-it-now on auctions like this as you are sustepable to fraud.

I hope this guide has been of help. If you have any comments or suggestions on improving this guide just send me a email and i will take your comment into consideration.

Please vote to ensure Visability. Thanks.  Please note this is just a simple guide ok.

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