Beware of Online Price Fixing

If I had a dime for every time I advised people not to use eBay or any online auction site as a method for finding out the value of a work of art or antique, I’d be able to help out with the debt crisis.

I have told folks time and time again that you can’t use an eBay listing or posted online sales results to put a value on an object. Online fraud is widespread and that’s why you can’t rely solely on an online auction website’s sales records to provide you with an accurate appraisal. Only an honest appraiser who can analyze the market data can provide you with that critical information. 

Recently, an online seller using the auction website eBay was prosecuted in the United Kingdom. He admitted that he used two separate eBay accounts to bid against himself on items that he had posted for sale. He bid on his own items to increase the price. This made the bidding soar and potential buyers think there was great interest in the object for sale. Onlookers mistakenly believed that his type of item was worth more than it actually was worth. Also, he admitted that he posted positive feedback relating to his own accounts to positively impact his online reputation and satisfy future buyers that he was a good seller with whom to deal. 

This type of fraud is not only reserved to online auction sites, but is has become very commonplace in the overall online sales arena. Experts maintain that shill bidding is a major problem for users of online auctions and some other antiquing and collecting websites.

Shill bidding is a big problem online. If a person pretends that his/her products are worth more than they are really worth, that is not on the up and up in the world of commerce, particularly in the world of e-commerce. Also, misrepresenting the demand for an item by creating false bidders for an item is also beyond the boundaries of acting in good faith.

Shill is an early 20th Century word which relates to the underhanded process of presenting a decoy or informed accomplice who poses as an enthusiastic potential buyer in an effort to attract other buyers. This is only one type of trick that people use when buying and selling art, antiques, and collectibles in the online environment.

Remember, you can't use online auction sites as a source for evaluating your art, antiques, or collectibles. Get an appraisal. An honest appraiser tells you what something is worth based on what other people have paid for similar items and a dishonest one tells you what he or she is willing to pay you for your object — that’s what the item is worth to them if they want to buy it (a.k.a., a purchase offer). An appraisal is NOT a purchase offer. Don’t be fooled. The next time you decide to shop, bid, or research antiques online, remember to click with care.