eBay can be a great way to buy used gear, but there's a lot to know to be able
to make good decisions about what to buy and whom to buy from. In a very real
sense, eBay is the new Wild West, full of opportunities, full of hard working
people, and full of outlaws. Before buying on eBay, consider the following
introduction.
Keeping Perspective
Naturally, everyone wants the best price they can get. But the desire for a good
price should also be kept in balance with safety, service, and time. Remember,
there are very real costs associated with responsible selling, so the
best sellers may not be the ones with the bargain basement pricing. What
appears at first to be a great bargain may end up being a costly mistake.
Many buyers become bottom fishers: obsessed with buying at the bottom of
what they think is the range of prices for their desired item. Remember that if
what you're seeking isn't a commodity item, it may take you days, weeks, or even
months of searching and waiting before you win an auction at the bottom of what
you think is the market range. Even if you end up with a smooth transaction and
not a costly disappointment, that's not really a good bargain. That time is your
life. If you need that gear to create the kind of music you want, you may have
set yourself back weeks or months to save yourself the amount of money you might
spend in a typical night out with friends. It's time you could be spending
writing music, or practicing, or learning, or making money. So, being a bottom fisher can
be a classic example of being penny wise and pound foolish.
Now let's suppose you buy 10 items and you manage to get each at a price 10%
below the market average. If just one of those purchases goes sour, it wipes out
all of the savings on the others, and you've just spent a lot of time for
nothing but some frustration.
The best approach to buying is to find a trusted seller with fair pricing.
Who's Out There?
Sellers fall essentially into 4 categories: A. professional sellers, B. responsible
non-professional sellers, C. irresponsible sellers, and D. outright frauds.
Frauds
Let's start with the worst, the frauds. These individuals will
say anything and do anything to get you to part with as much of your hard earned
money as they can. Many of these people seem to have no conscience at all. Most
such frauds will operate under assumed names and addresses, possibly fabricated
or possibly stolen through ID theft, and they will communicate with you only so
long as it suits their schemes. On eBay, a favored method of these frauds is to
hijack an account of an unsuspecting eBayer in good standing. For these reasons,
the chances of tracking down one of these slippery individuals after being
defrauded are negligible. It's difficult to get precise statistics -- eBay
probably doesn't want you to know -- but these frauds are not as rare as you
might think.
Irresponsible Sellers
Sellers can be irresponsible in every phase of the selling process, from
describing items, to communicating with buyers, to packing and shipping, to
follow-up. A distressingly large number of ordinary people seem to regard eBay
as a dumping ground for problematic gear. These people won't tell you about
problems for which there's plausible deniability. Perhaps a knob behaves
erratically, perhaps a segment of a display is out, perhaps random notes play
occasionally, etc. They can always claim that they never experienced the
problem, that it must have arisen in shipping. The bolder ones can be even more
blatant.
Some very common problems with used gear are things like data wheels with
erratic, jumpy, or sporadic response, keyboards with uneven velocity response on
some keys, dim or uneven backlights, scratchy pots, loose, broken, or scratchy
jacks, etc. Irresponsible sellers sweep these problems under the rug, so gear
with such unannounced problems sells everyday on eBay to unsuspecting buyers.
Repairing used gear is usually expensive and often not cost effective. Keep in
mind that repair shops usually charge about $80 per hour, with a one hour
minimum, in addition to parts costs and two-way shipping costs.
Be cautious about as-is auctions, especially when they come with a fishy story,
e.g. "a client gave me this module for free but I don't need it ..." In many
cases, "untested and as-is" should be read "tested and found defective."
Then come shipping fiascos. In many cases, an irresponsible seller isn't willing
to take the time and money to obtain proper packing materials. Horror stories
abound of cases of expensive electronic gear being shipped in boxes without fill
material, or in flimsy garment boxes, etc. In some cases, an honest seller
simply doesn't know how to properly pack an item. Sensitive electronics may be
wrapped in ordinary bubble wrap, metal framed modules with sharp protruding
parts may be loosely packed in small or ragged boxes, etc. Even if such items
are fully insured, it is unlikely that a shipping company will honor a claim.
Professional and Responsible Sellers
These are the ones to buy from, of course. Remember, there are very real costs
associated with responsible selling, so the best sellers may not be the ones
with the bargain basement pricing. Smart buyers should realize this and be ready
to pay a reasonable premium for good service and peace of mind.
How to Spot a Good Seller
The most obvious way to weed out bad sellers is by feedback. But how good does
feedback need to be? Ebay sets the cutoff at 98% for PowerSellers. If a seller
falls below that, they lose PowerSeller status.
PowerSeller status is an excellent (though not perfect) indication of a good
seller. But many experienced buyers set the bar even higher. In a recent
informal survey, only 20% of experienced buyers would consider buying from a
seller with feedback under 99%. I contend that a seller should really have
essentially no legitimate negative feedback -- the operational word being
legitimate. There are always going to be a few bad apples among buyers,
buyers who may not have ever even paid for an item, who may be irresponsible or
fraudulent, and who leave negative feedback out of spite, or in retaliation for
negative feedback deservedly received. For this reason, demanding 100% positive
feedback may be excluding many good sellers. But beyond the occasional negative
feedback from an irresponsible buyer, there's little justification for any
negative feedback.
Another consideration when assessing feedback is how difficult a business the
seller is in. Some businesses are inherently more difficult than others. Selling
the same prepackaged commodity item again and again is relatively easy. Selling
used music gear, where each item is somewhat unique and must be checked
exhaustively for defects, and where buyer expectations are not always easy to
gauge, is relatively hard.
The bottom line is: check the feedback score, and read the feedback comments,
especially the negatives.
Now for the bad news. Fraudulent sellers often have great feedback. How do they
do it? A favored practice of fraudulent sellers is to open a new account, rack
up some positive feedback selling a few cheap items, or some expensive items to
cronies, and then list a large number of high ticket items with attractive
pricing. The strategy is to appear to be a legitimate seller, land a large
number of quick sales without any intention of shipping the items, and make off
with the money before the buyers, eBay, and PayPal realize what's going
on. These sellers may accept money orders or they may accept PayPal. It doesn't
matter. Either way, the buyer will be fleeced. By the time buyers realize a few
weeks later that they aren't receiving what they paid for, the fraud has already
disappeared without a trace.
Another favorite method of frauds is to hijack an account in good standing. This
is one of the most insidious tricks, because the seller's feedback and track
record may appear to be stellar. The best way to guard against this kind of
fraud is to be alert for anything fishy: a price that's too good to be true,
free overseas UPS shipping (which would generally be extremely expensive), an
auction currency that does not match the auction location, an email address
listed in the auction along with instructions to avoid eBay's messaging system,
a direct request for payment by money order or Western Union in conflict with
the auction's stated payment methods, etc.
This is an apt moment to raise an alert about another common fraud technique. In
order to gain the trust of a buyer, a scammer may claim to have been certified
by eBay, or to have had their auction guaranteed. They will sometimes reinforce
this illusion by forging an email to you that appears to be an official
notification from eBay providing a guarantee or service of some kind. Don't be
fooled by such official looking messages; they are very easy to
spoof. Apart from the eBay and PayPal buyer protection programs (see below)
there is no such thing as a certification or guarantee from eBay for a seller or
his auction.
Hidden Costs
Be sure you know the shipping charge before bidding on an item. Excessive
shipping charges are a common way for unscrupulous sellers to shift their take
on an auction from the up front price to the less apparent shipping charge. This
is a way to entice unsuspecting buyers with a falsely attractive price, at the
same time as evading part of eBay's final value fee. Even if a seller is
perfectly honest, his shipping charge may be above what you expect; some items
are very expensive to ship. Also, some auctions require insurance.
It goes without saying that shipping should be a prime concern when buying from
overseas sellers. Customs taxes will also be required on most such purchases and
these taxes are charged as a percentage of sale price and can be quite
high. Shipments between Canada and the US that go by ground are also frequently
assessed an expensive "brokerage fee" even if the item is not subject to customs
duties. Brokerage fees can also apply to purchases from other countries if a
commercial carrier is involved.
Another common source of hidden costs is missing accessories. Used gear is often
sold without all of the original materials. In some cases, those materials are
superfluous or outdated, but in others their absense can be a nuisance, or even
a show-stopper. Be sure you know what you need and you know what the seller is
offering. A particularly frustrating situation is to buy an item only to find
out that it is missing a seemingly trivial part, such as a screw or a cable or a
brace, without which the item is difficult or impossible to use. Many
unscrupulous sellers gloss over such omissions, or assure you that they
will be easy and cheap to replace. Make sure they really are easy and cheap to
replace before buying. Otherwise, your bargain item will likely end up being an
expensive piece of useless clutter.
But I'm Protected, Right?
Ebay and PayPal offer some protections, but there seems to be widespread
misunderstanding over when this protection applies and how much it
covers. PayPal's marketing slogans contain phrases like "safe and secure," so
many buyers assume that buying with PayPal means blanket protection. In truth,
coverage is not as clear cut as that. Ironically, coverage is less complete or
non-existent in cases where it's more likely to be needed. For instance, you
aren't eligible for buyer protection if the seller has a feedback score lower
than 50, or has less than 98% positive feedback, or has an ordinary PayPal
account rather than a Business or Premier account, etc. Also, you are only
eligible for coverage on three purchases per calendar year. Many other
restrictions apply. It's important to familiarize yourself with the specific
terms of the buyer protection program.
Coverage is particularly problematic in cases of defective or misrepresented
items. Such items may be essentially worthless, or worth much less than what you
paid, but it will be very difficult to recover your losses. Keep in mind that in
order to gain reimbursement from eBay or PayPal for a misrepresented item,
you'll not only have to win the dispute with the seller, you'll also have to go
through a claims process. This will involve, among other things, obtaining an
appraisal of the misrepresented item from a store or neutral third party with
appropriate expertise, based on a physical inspection, and put in writing on
store letterhead. If common sense does not convince you of the difficulty of
obtaining such an appraisal, you might want to call a few of your local music
shops to ask them if they would be willing to help you in this way. Keep in mind
that most such shops will regard eBay as troublesome competition, may not have
seen an item of the kind you bought in years, will be leery of putting any
statement in writing, and probably won't have any way of attaching a meaningful
value to a defective piece of used gear. If you find a saintly store that is
willing to assist you in this process, there is still no reason to expect that
the appraisal will be at a value low enough to help you in your claim.
Law Enforcement?
Most cases of eBay fraud fall through the cracks of the law enforcement
system. Because such a crime involves the locale of the buyer and the locale of
the seller, it is not clear to which law enforcement agency responsibility
falls. The buyer's local police? The seller's local police? The FBI? The Postal
Inspector? In practice, none of these agencies is likely to do more than file a
report - if even that - for an isolated incident involving a transaction of a
few hundred or a few thousand dollars. This is the case even if you know who
your seller is, much less if it's a fly-by-night fraud who used an assumed name
and address (in which case the chances for success are remote).
I am sorry to have to report such a grim view of the situation. I wish it were
not so, but in this new Wild West of internet crime there's a rising tide of
fraud and no agency with the means and the charge to fight it effectively. In
most cases, you'll have to rely on your own wits and a fast draw.
Conclusion
Caveat emptor (Buyer beware). Keep alert, use your common sense, don't buy anything that's too
good to be true, and try to buy only from responsible sellers. Make your best
effort to know your seller before clicking the bid button. The bottom line is
to avert problems before they happen. An ounce of prevention is worth a pound of
cure in this business.