AW Daily - Tips & Tactics - During the Auction: Recognizing Hidden Costs

Home > Tips & Tactics > Tip

There's nothing more frustrating than thinking you've finalized a great deal, only to then discover an array of additional costs that jack up the price of a purchase. What initially seemed like a modest buy can quickly spiral into a much more significant investment.With that in mind, we've compiled a list of some of those dreaded--and oftentimes unforeseen--hidden costs.

Batteries Not Included
Read an item's description very carefully to see if you will need to make any additional purchases for the item to be complete. Before placing your bid, make sure you know what is and isn't included. Say, for example, you're buying software. Will you be paying for the full retail version or a shareware version (with certain features disabled and no manual)? If an item write-up fails to mention something, don't assume that it's included with the purchase of the item. If you have any questions, ask the seller.

Shipping and Handling Fees
That's right: Something as simple and basic as shipping and handling fees can often be overlooked--that is, of course, until you get the final bill. Know how much the shipping will cost before you place your bid, and make sure you understand the seller's preferred method of shipping. This should all be covered in an item's description; if it's not, then contact the seller to clarify the shipping situation. Also ask the seller about any additional handling or packaging charges.

Getting familiar with the major shipping companies is a great way to avoid any unanticipated shipping costs and verify that you're being charged the correct amount. Both the United States Postal Service and United Parcel Service's Web sites have helpful rate cualculators. For a one-stop shipping destination, investigate iShip.com, where you can do some comparison-shopping and get quotes from all the major shipping services. Also be aware that an inexpensive item can cost a lot in shipping, especially if it's shipped internationally. So ask yourself: Is that $2 cup from the Ukraine really going to be worth the added shipping charges?

Insurance and Escrow
The U.S. Postal Service will not pay for damaged or lost items without insurance. Figure out how much insurance will cost before you place your bid. Do not assume that insurance is included along with your purchase. Escrow is yet another cost. Escrow services hold a seller's merchandise until the buyer delivers payment to the service. For some it's worth the peace of mind, but realize that it will cost you. For example, i-Escrow, which is partnered with eBay, Amazon.com Auctions, and CityAuction, charges 5 percent of the final value of the item up to $5,000, with a minimum fee of $5.

After Sale Appraisal
When you're in the heat of an auction you might not be thinking about the future and whether or not you'll eventually resell the item (unless you're a savvy collector who's always on the prowl). If your purchase is something that you plan to put back on the market at some point, remember that you'll have to get the item authenticated and appraised again--and that costs money. Keeping this in mind when you're placing your bid will prevent a future "d'oh!"

Researching Sellers
Identifying Questionable Auctions
Verifying Items