What is E-auction:
Auction is market mechanism by which buyers make bids and sellers place offers. It is characterized by the competitive and dynamic nature by which the final price is reached. Auctions can rapidly disposal of items that needs liquidation or a quick sale, they offer trading opportunities for both buyers and sellers that are not available in conventional channels and they ensure cautious execution of contracts.
The most popular type of auctions is an electronic auction (e-auctions) which means auctions conducted online. Nowadays many people joining in e-auction but they always do not know how to prevent e-auction fraud.
7 Ways to prevent E-auction fraud:
Auction is market mechanism by which buyers make bids and sellers place offers. It is characterized by the competitive and dynamic nature by which the final price is reached. Auctions can rapidly disposal of items that needs liquidation or a quick sale, they offer trading opportunities for both buyers and sellers that are not available in conventional channels and they ensure cautious execution of contracts.
The most popular type of auctions is an electronic auction (e-auctions) which means auctions conducted online. Nowadays many people joining in e-auction but they always do not know how to prevent e-auction fraud.
7 Ways to prevent E-auction fraud:
1. User identity verification such in IC number, driver’s license number or date of birth. For example, verified eBay user, the voluntary program, encourages users to supply eBay with information for online verification.
2. Authentication service. It is to determine whether an item is genuine and described appropriately. It difficult to perform because their training and experience, experts can detect counterfeits based on subtle detail.
3. Grading services which is a way to determine the physical condition of an item, such as ‘poor quality’ or ‘mint condition’. Different item have different grading systems. For example, trading cards are graded from A1 to F1, while coins are graded from poor to perfect uncirculated.
4. Feedback forum. It allows buyers and sellers to build up their online trading reputations. It provides user with ability to comment on their experiences with other.
5. Non-payment punishment. To protect sellers, a friendly warning for first-time nonpayment. A sterner warning is for second-time offense, with a 30 day suspension for a third offense and an indefinite suspension for a fourth offense.
6. Item verification which is a way of confirm he identity and evaluate the condition of an item. Third parties will evaluate and identify an item through a variety of means. For example, some collectors have their item “DNA tagged” for identification purpose. It provides a way of tracking an item if it charges ownership in future.
7. Physical inspection. It can eliminate many problems especially for collectors’ item.
Reference link:
http://www.wikipedia.org/
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