There is no opportunity to look a business owner in the eye to see if they are honest, if you trust the deal, when you are shopping online.  Shopping online requires consumers to take extra precautions in protecting themselves against scams and fake sellers.  An educated online shopper can have a safe Internet experience by following these tips for how to spot a fake seller when shopping online.

Tip #1: If it looks too good to be true, it is.   Yes, there are some great bargains and to be found while shopping online, but the old adage stands true.  You simply can find a new iPod for $30.00, no matter how good of a shopper you are.  This low ball pricing is a red flag for a fake seller.  Use the Internet to the seller’s prices to numerous other vendors.  You can also compare the shipping prices and terms of sale.

Tip #2: What does the website look like?  Take some time to just scan over the website.  Do you get a feeling that this company is professional?  Are they customer oriented?  Does it seem like they know what they are doing?  Using your common sense it is easy to get a feel for some quick warning signs.  Be sure there is contact information for the company, including a phone number and physical address, not just email.  Check the phone number to make sure it is legitimate.  Do they clearly display the return policy?  What type of payment do they accept?

Tip # 3: Verify the company is legitimate.  In addition to making sure the contact number on the website is a working number, also verify the company.  Using the Internet, Better Business Bureau, or resources via eBay, you can research the company data.  You may be able to find out information such as how long they have been in business, how long they have been transacting business on the internet, how much business they do, and if there are any complaints against them.  PayPal is another service that will keep track of the status of their accounts.  If a retailer does not accept PayPal, or has been banned from using PayPal this is a definite red flag.

Tip #4: Ask many questions, just like retail stores. If you are considering an expensive purchase in a retail store, chances are you will ask many questions to the sales person.  Do not forget to ask all of these same questions when you are shopping online.  If they provide a description of the item, this does not mean you cannot call and probe for even more answers about the product.  This also provides another opportunity for you to validate the seller and the transaction.

Tip #5: Use an Escrow account to assist your high-end transactions.  Use a reputable escrow company, they will hold your payment and not transfer it to the seller until you receive your purchase, compare it to the photograph of the item you bid for, and confirm its authenticity. Escrow will charge a commission. Typically in negotiation, buyers and sellers will split the fee.

Tip #6:  Carefully consider your method of payment and their terms.  Learn what the process and term are for returns.  What about late shipments?  What happens if you are not satisfied?  What if the product arrives damaged? How easy or difficult will it be to get your money back?  A legitimate vendor should have all of this information easily available on their website.  Do not wire money or send money orders.  The best way to track an online transaction is through PayPal.  PayPal also gives you a rating for every vendor you use with him or her.  This rating is reflective of their track record and customer relationship history.  Be sure that you retain all records of your transactions, even after you have received your shipment.

There are many great items to be found in the cyber-world of online shopping.  A savvy consumer needs to remember it is easy to be taken in by a great deal online.  Keeping a constant eye out for warning signs and red flags is a must.

Remembering this tips for how to spot a fake seller when shopping online will make your Internet experience much more enjoyable. 

 

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3. Five Fail-safe Methods to Have a Scam-free Online Shopping Experience
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5. E-Commerce Owners and the Importance of Establishing an Online Payment System

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