Online Marketplaces: Savvy Shopping & Selling During the Holidays
This holiday season, you may find yourself buying or selling in online marketplaces. Online marketplaces can be a great place for buyers to find deals and unique gifts. For sellers, online marketplaces can help you find customers and earn extra cash. However, online marketplaces are also a place where scammers lurk and deals go bad.
The most important tip is to know that not all online marketplaces are created equal. You should use only reputable marketplaces well-known for connecting buyers and sellers in safe ways.
Here are 5 tips to make sure you’re protected when buying and selling in online marketplaces:
1) Look for marketplaces that:
- Include reviews of the seller/business
- Offer a process to assist buyers with obtaining refunds for goods not received as advertised
- Are well-known, respected sites
- Accept credit cards
Avoid online marketplaces where you don’t really know who you’re dealing with in the transaction. In these marketplaces, you, as a buyer or seller, bear ALL the risk.
2) As a buyer, look for sellers who:
- Have consistently positive reviews. Read both the positive and negative reviews to get a feel for the seller and issues that come up frequently.
- Pro tip: If all the positive reviews are from the exact same date, that’s a red flag.
- Provide contact information that clearly states their policies, delivery times, etc.
- Provide clear pictures, measurements, and product specifications.
3) Whether buying or selling, watch out for scams.
- You’re most vulnerable to scams when you don’t know who you’re dealing with or don’t understand the risks in the transaction.
- Remember, if a deal seems too good to be true, it probably is.
- Don’t be pressured into making a quick decision.
- Avoid online marketplaces that don’t have procedures, controls, and protections for their buyers and sellers. These are especially prone to fraud and scams.
Pro Tip: Check out Red flags to Help You Spot Fraud & Scams
4) Use safer payment methods.
This advice is direct from the Federal Trade Commission.
- Credit cards offer legal protections, so it’s a “safer” payment method.
- Avoid other payment methods that make it tough, if not impossible, to get your money back. These payment methods include wire transfers, gift cards, and cryptocurrency.
- Don’t make mobile payments to someone you don’t personally know and trust.
Be savvy online this holiday season. You won’t regret it.
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Marjorie McLean is a financial counselor and educator whose favorite childhood Saturday morning activity was counting the coins in her piggy bank. As an Accredited Financial Counselor (AFC®), she is a member of the Better Financial Counseling Network and is the owner of FinancialPearl. Marjorie partners with people, providing tools, resources, and information, guiding them to take positive steps to identify and achieve their financial goals.