Auction is a mechanism by which buyers make bids and sellers place offers. Whereas e-auction means electronic auction which allows auctions conducted online. It brings a lot of benefits to the users but it has several limitations. Frauds in e-auction have become higher and higher but there are some preventions that can alleviate it.
User identity verification
If the users wish to have online verification, they have to offer their date of birth, identity card number or driving license number to the website to qualify for the highest level of verification. The service offered may have service charge on the users. For example, eBay uses the services of Equifax to verify user identities for a $5 fee.
Feedback forum
The feedback forum enables the registered members to build up their online trading reputations. The users can comment on their experiences of trading with others. If the particular seller or buyer often receives good comments, other users will fe
el relieve to trade with him or her.
Escrow services
It is a third party service which protects both seller and buyer. The buyer mails the payment to the escrow service and it will verify the payment and alert the seller when everything is checked out. After that, the seller ships the goods to the buyer. After an agree-upon inspection period, the buyer notifies the service which then sends a check to the seller. For example, i-escrow.com and fortis-escrow.com provide the escrow services.
Nonpayment punishment
It is an important policy against those who do not honor their winning bids. A warning will be given for the first-time nonpayment and it will result in suspension of account if the buyer commits a certain number of offenses.
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