In an online auction with major, reputable services, potential sellers complete the process necessary to register as a user and then post items for sale. Each sale has a description of the product, often with a photo, a closing date and usually a minimum required bid. Potential buyers also must register with the site and then can bid on the item. The highest bid wins. Jan Lukens, personal finance specialist with the Mississippi State University Extension Service, said buyers should seriously consider security when bidding.
Bids are legally binding, and the winning bidder is required to pay the bid amount.
Familiarize yourself with the rules and policies of the auction site before you participate. Even before reading the legal fine print, Lukens recommended verifying the site's validity. Check the company's reputation through such organizations as the Better Business Bureau Online or the National Association of Attorneys General. Confirm the company's physical location. After confirming that the site is legitimate, potential buyers still must protect themselves at the online auction.