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Coin Bidder’s Guide
to eBay
Beginner to Expert in 12 Easy Steps
By Barry Stuppler (eBay
ID VERYPQ)
No matter where you live or what time
it is, eBay enables you to buy or bid on rare coins you want for
your collection or as an investment.
The process is convenient and enjoyable, and you can get excellent
quality at affordable prices. (eBay has created marketing efficiencies
for sellers, so you don’t pay for a lot of overhead.) But,
you can also get burned. A few sellers hidden behind eBay IDs misrepresent
coins to extract quick bucks from gullible buyers. These sharks are
easy to identify and with a little knowledge you can avoid problem
coins. Simply follow these 12 steps to ensure a positive and rewarding
eBay coin buying experience.
1)
Check the seller’s feedback
The very first thing to do before bidding or buying is to take advantage
of a remarkable evaluation tool provided by eBay — feedback.
Winning bidders or outright buyers can leave positive, negative,
and neutral comments about their transactions. eBay posts these
comments and compiles a “feedback rating” based on
them. See it by clicking the “View seller’s feedback” link.
A positive posting adds one point to a seller’s feedback
rating; a negative comment subtracts a point; a neutral statement
doesn’t affect the rating. eBay publishes the net number
of feedbacks plus the number from unique users. To avoid being
deceived by a high feedback rating created mainly by the seller’s
friends and relatives, be sure that a significant percentage of
the positive feedbacks are from unique users. A seller who is honest,
fair, and competent should have a low percentage of negative ratings.
A box on the feedback page shows the number of positive, negative,
and neutral ratings for the past six months. Negative ratings of
more than 2% are a red flag. I recommend buying only from those
who have been selling on eBay for six months or more and have 100
or more feedbacks with at least 98% of them positive. New sellers
may offer good products and service, but sending them your money
before they meet the feedback criteria isn’t worth the risk.
2)
Analyze the feedback information
Analyze the recent comments carefully. Remember that most eBayers
are reluctant to post negative comments because they are afraid
of retaliation (more on this concern later). Slow delivery (which
might
even be attributable to the method of shipping) is less significant
than bad communication, bad service, and/or bad product. Complaints
from several unique users that the coins received were inferior
to the coins described on eBay suggest that the seller is a predator
you should avoid. Check for the “B” or “S” on
the right side of feedback comments. “B” means the
person receiving feedback was the buyer; “S” means
he or she was the seller. Even if the feedback rating is over 100,
beware if
most of feedbacks show a “B.” A trader can make a series
of $5 and $10 purchases to build up a positive rating, then use
the positive rating to scam people into buying overpriced or never-delivered
big-ticket items.
3)
Visit seller’s “ME” page
Every eBay seller can create a “ME” page. When sellers
have done so, a “ME” icon appears in each of their listings,
to the right of the user ID and rating. Click on it and check out
the seller’s self-description. See if there is a name and/or
company name (not just the eBay user ID), snail mail address, and
phone number (which you might want to try calling). See if there
are banking and professional references. If there is no “ME” page,
or if the “ME” page does not contain a name, address,
and phone number, don’t buy from that seller. It would be very
difficult in case of a problem.
4) Know your seller’s location
The location of the seller is listed on each offer. eBay attracts
sellers from all over the world. Many fraudulent sellers are
from third-world countries. They steal a photo from a legitimate
offering,
display it with a low reserve to attract buyers, often insist
on payment by cashier’s check, money order, or wire, and
never deliver the product. I recommend purchasing only from sellers
located
in the US, which also avoids problems with customs and long waits
for delivery. Within the US, if everything else is equal, consider
the tax implications. If the seller is in the same state as you,
you may have to pay sales tax. (In California and many other
states, rare coin purchases of over $1000 are exempt from sales
tax.)
5)
Make sure seller is a PNG and/or ANA member
Check the “ME” page for these affiliations. PNG
- The Professional Numismatists Guild is the world’s
premier coin dealers association. Its fewer than 400 members must
pass financial
and character screening by an outside firm, have a minimum
of five years of full-time professional numismatic experience,
and adhere
to a strict code of ethics. PNG members are in business for
the long haul, not the quick rip-off. You can also protect yourself
by buying
from a seller who is a member of the American
Numismatic Association,
a nonprofit educational organization chartered by the United
States Congress. The ANA does not screen its members, but you
can bring
a dispute about a coin bought from a member to the ANA
Mediation Services. To take advantage of the service, I recommend that
you join the ANA. The mediation service alone is well worth
the ANA’s
$39 basic annual dues, to say nothing of the monthly magazine
and a wealth of educational information the 28,000-member association
provides.
6)
Do not be deceived by a coin’s certification
A recent
survey of coin professionals conclusively proved what
many have known for a long time: not all authentication and
grading services
are equal when it comes to critical questions such as grading
accuracy and ability to detect cleaned, damaged, or counterfeits
coins.
This survey of over 150 dealers show that PCGS (Professional
Coin Grading
Service, in California) and NGC (Numismatic Guaranty Corporation,
in Florida) were ranked “superior.” Two 2nd-tier
services, ANACS and Independent Coin Grading Company (ICG),
were ranked “average.” Many
3rd-tier services were ranked “poor” to “unacceptable.” Given
the significant price jumps between grades, there is no right
price for the wrong coin. You throw away your money if you
purchase raw
(uncertified) coins or coins certified by inferior services.
First-time rare coin buyers often believe that they can get
a bargain by purchasing
raw coins or coins from 3rd-tier grading services at prices
that seem right for coins one or two grades lower. The reality
is that
prices too good to be true almost always are too good to
be true, leaving the buyer with a problem coin. High value
raw coins or coins
from inferior grading services that are offered on eBay often
are cleaned, repaired, damaged, or even counterfeit — difficult
to sell in the future. Rarely have I seen high quality rare
coins sold on eBay at below-wholesale price. Therefore when
you seek to
acquire a certified rare coin worth $200 or more, protect
yourself by bidding on or buying only coins graded by NGC, PCGS, or ICG, three very respected and actively traded certification and authentication companies.
7)
Check shipping terms, costs, and payment options
Scroll down below the product description to the terms
of sale and read the details regarding shipping. You want
to
know the
cost, speed,
and security of the shipping process. Methods of shipping
vary from seller to seller. They include parcel post, registered
mail, Express
Mail, and FedEx, each with or without insurance. When expensive
items are involved, you want to be sure that they will
be sent
as quickly
as possible by registered mail insured or FedEx. If your
preferred method of payment is credit card, see which if
any credit cards
the seller accepts. Some sellers offer delayed payment
or layaway plans.
If you intend to use them, read the details carefully,
and request clarification if necessary.
8)
Read the return and refund policies
While you are in the terms section, read the policy on
returning an item. All legitimate dealers have a return
policy. If
you are dissatisfied with a coin, you should be able
to get your
money
back. Time frames differ from dealer to dealer; always
check to see how
many days you have to return a coin for a refund. See
if the seller charges a restocking fee or gives only an exchange
privilege
or
store credit rather than a money-back guarantee. If you
do not find the
return policy satisfactory — or if there is no
posted return policy, and the seller will not respond
to your email — don’t
bid or buy.
9)
Check online pricing guides
Where can you find guidance on the right price to pay
for a coin? eBay itself contains a powerful up-to-the-minute
database.
Go
to eBay’s home page, click on “Search,” then
click on “Advanced Search.” In Keywords,
type in what you are looking for, such as “1916-D
dime.” In Category, select “Coins,” and
check “Completed Items only.” Click on “Search,” and
up comes a list of every eBay sale of a 1916-D dime
in the past month (22 sales were listed the day I wrote
this), with the final sale
price, the number of bids, and a link to the original
listing. Off eBay, other excellent numismatic pricing
and information websites
can help guide your bidding/buying decisions. For pricing,
I recommend Coin
Price Guide - PCGS (free) and NumisMedia
Online Price Guide (full access requires a subscription). Coin
Connoisseur contains market analysis and other informative articles,
including information
on the previously mentioned survey
of grading services.
10)
Email the seller with questions or concerns
If after looking at the offering you have questions
about the picture, the description, the terms, or
anything else, do not
hesitate to
email the seller with a question. Give the seller
a few
days to answer. If the answer is not satisfactory,
or if there
is no answer,
rethink
purchasing from this eBayer.
11)
Pay safe
Paying by credit card is an excellent defensive move.
If you call VISA or MasterCard, for example, within
60 days
of a charge
on
your monthly statement and say you never received
the item, they will
credit you for the purchase while they investigate.
Unless the seller can prove you did receive the
item, you will
not be responsible
for
payment. Sellers who accept payment by credit card
know that buyers are protected and are more likely
to regularly
deliver
what they
advertise, whether you pay by credit card or not.
One more thing while we’re on the subject of credit cards: Never, never email
your credit card number — email is not secure. Instead, call
the seller with your number. Many eBay sellers don’t accept direct payment by credit card,
but do accept payment through PayPal. PayPal offers some protection
for consumers, but at a lower level than most credit cards, through
a more complex procedure. PayPal's
Buyer Complaint Policy includes
some additional protection for eBay buyers (eBay owns PayPal). Of
course, you could dispute a PayPal charge through your credit card
company, but PayPal’s buyer complaint policy includes potential
penalties for doing so.
If
you pay by check and want fast delivery, particularly if the seller
is in a different state than you, send
a money order or cashier’s
check. That way the seller should be able to ship within 2-3 days,
rather than waiting a week or more to be sure your personal check
has cleared. To save on their PayPal or credit card fees, many sellers
offer a discount for payment by check or money order.
12)
Print out the photos
There should be a photograph of the obverse (front) and reverse
(back) of the coin (if not, email the seller as suggested in
# 10 above).
If you’re the successful bidder or you use the “Buy
It Now” option, print out the photo or save it to a file
on your computer, then carefully compare the overall look and the
details
to the actual coin when it arrives. If the coin you are bidding
on or buying is certified by a third party grading service you
should
see or ask the seller for a photo showing the entire capsule. The
capsule should show a certification number, so that you can compare
the numbers to make sure the coin you get is the coin you bought.
After
you receive your coins Inspect promptly
When you receive a coin purchased on eBay, the most important and
urgent task is to inspect the coin well within the seller’s
time limit for returns. If you are not happy for any reason, return
the coin using registered mail insured or FedEx, so that you have
proof of delivery. Do not keep a coin out of fear of negative feedback
by the seller (yes, sellers also get to rate buyers). Most sellers
are motivated to keep problems quiet rather than publicize them.
Check the shipping/packaging
Was your coin shipped promptly? Was it packed well? Did anything
on the outside of the package, even in the return address, indicate
that it contained coins? If so, inform the seller that such an
indication is a no-no. You don’t want to publicize the idea
that your home contains valuable coins.
When posting feedback, be fair and precise
When your transaction has been completed and you’re happy with
the service, delivery, and quality of the coin, post the positive
feedback the seller has earned, and request that he/she do the same
for you as the buyer, which will help you in future purchases. If
you’re not happy with the transaction, let the seller know
and give him or her an opportunity to make it right. If you have
been fair and the seller will not resolve the problem, don’t
be afraid to post negative feedback. It’s the responsible thing
to do and it helps protect everyone in the eBay community. Be certain
that you are correct and be factual.
If
you have been the victim of fraud or deception, the facts will
show that. What if the transaction
was “kind of OK”? Maybe the coin was as described,
but the seller was slow to ship and the packaging was inferior.
These
gray areas are suitable for giving neutral feedback. Save the heavy
hit of negative feedback for a seller who has proven themselves
to be purposely deceptive or fraudulent. Barry
Stuppler urges you to forward
this article to friends who buy coins on eBay. Barry
has helped thousands of collectors and investors develop successful
strategies for acquiring high-grade rare coins. Now in his second
term as a member of the Board of Governors of the American Numismatic
Association (ANA), he served as chairperson of the ANA’s
Consumer Protection Committee. He is a founder and a member of
the Board of
Directors of ICTA, the coin community’s lobbying organization
in Washington DC.
Throughout
his four decades as professional numismatist, Barry has been active
in the rare coin community’s fight
to set ethical standards for dealers. He has consulted with US
Postal
Inspectors, the Federal Trade Commission, and the FBI to squash
scams against coin collectors. In the 1980s he spearheaded a successful
legislative effort in California to provide sales tax exemptions
for rare coins; similar exemptions have been passed by most states.
In the 1990s he founded and published Coin Connoisseur, a magazine
devoted to education about the opportunities and pitfalls of coin
collecting and investing.
He
has been a member of Professional Numismatists
Guild since 1982, and was recently appointed by Governor Gray
Davis to serve as a member of the California State Quarter Committee,
which will help select the design of California’s statehood
quarter in 2005. Most important, Barry has helped thousands of
1st-time collectors
and investors enjoy and benefit from the many rewards that rare
coins provide. You can reach Barry at (888) 454-0444 or barry@coinmag.com.
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