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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