Another 30 percent don t think it s necessary to use them, and 19 percent don t want to pay the fee. Online escrow services are convenient for both auction buyers and sellers. The fee, usually a small percentage of the final purchase price, can be paid by either party as they mutually agree. For sellers, escrow may be a less expensive option than participating in the credit card payment system, especially if the buyer pays the fee. For buyers, it can help ensure that they will get what they pay for or they won t have to pay.
Online auctions can offer great benefits to both buyers and sellers.
But as the survey shows, when a consumer pays before receiving the merchandise, or a seller ships the goods before the buyer's payment clears, there is some risk involved. Even though most people have good intentions, things occasionally go wrong. And some people are irresponsible, or even downright dishonest, in their dealings with others. Auction participants need to be aware of the risks and know how to protect themselves. It's easy to get carried away in the excitement of online auctions.