Online Auctions
New Zealand Online Auctions
In New Zealand, online auctions are an extremely popular way to buy and sell goods and services. In this article we take you through what an NZ online auction is, how it works, some of the most popular sale items, and how to buy and sell safely online.
What is an online auction?
An online auction in New Zealand is similar to a traditional auction, where buyers bid against one other to purchase goods or services. However, online auctions differ in that this process is conducted over the Internet, so goods can rarely be inspected prior to purchase and instead of live bidding occurring around you, this is conducted electronically. Extra care needs to be taken by both buyers and sellers to ensure positive outcomes for all concerned! New Zealand online auctions act as a marketplace to facilitate the exchange of goods and services between the online auction site's members.
What are the advantages of online auctions in NZ?
On line auctions have some inherent advantages over traditional forms of auctions:
- Bidders from all over New Zealand (and in some cases Australia) can participate in an online auction, making auctions more accessible and allowing a greater number of buyers and sellers to get involved.
- Bids can be placed at any time, 24/7, meaning those buyers who may have not been able to make it to a traditional auction can now bid.
- Bidding can become a very social process, with some elements in common with gambling, when buyers get 'auction fever' as they attempt to 'win' an auction. This interaction creates a sense of community and enhances loyalty amongst users.
- Because of the reasons listed above, online auctions in New Zealand will generally have a far higher number of buyers and sellers than traditional auctions.
Why are New Zealand online auction sites so popular?
Online auctions in New Zealand have experienced a massive rise in popularity over recent years. Almost all of this is due to the success of the online auction website TradeMe, founded in 1999, which now accounts for a staggering 50% plus of all Internet traffic originating from New Zealand. TradeMe is the first place New Zealanders turn to when they are looking to use an online auction, and with over 1.5 million members, over one third of our population is involved. Just about anything can be listed for sale (with legal restrictions of course), some of the most popular categories are clothing, pets, electronics, computer, art, jewellery, wine and online car auctions.
How can I buy and sell safely in an online auction?
For the buyer...
- Check out the seller you are buying from in the online auction, read the feedback others have placed about them and check whether they have verified their address (in most New Zealand online auction sites, sellers can become address verified as a trust and security feature).
- Examine the item closely; look at photos, ask questions and read the description carefully.
- When paying, ensure you are using a reputable payment method. Most common in NZ online auctions are bank transfer and cash; cheques and third party payments are available, but don't transfer any money to an overseas bank account.
- Keep a record of all communications and transactions surrounding your online auction; this may become useful in the unlikely event that a dispute arises.
For the seller...
- Provide a full, clear and accurate description of the item/s listed for sale. Take some good quality photos; this is essential to getting the best price for your item in an online auction.
- Make your postage and returns policies clear.
- Don't send goods until payment has been received, and in the case of a cheque, until the cheque has cleared.
What about the law and online auctions in New Zealand?
NZ online auctions are a bit of a grey area when it comes to the law. If you are buying in an online auction from what is known as a 'one off' private seller, you are not covered by consumer protection legislation (The Fair Trading Act and Consumer Guarantees Act). However any regular online auction trader is considered a 'professional trader', and buyers purchasing from such sellers are protected by legislation. Overall, if a dispute arises or goods are received that a buyer is not happy with, the key is to keep lines of communication open and seek a resolution. Recourse to the law and authorities will only be necessary if the buyer and seller cannot come to an agreement.
Looking for more information? Find New Zealand online auctions in the NZS.com directory.
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Business images from Flickr: Sky Tower, New Zealand Flag and Wellington Buildings.
