The Aucklander set to enter the online market

The Aucklander community magazine launches an innovative online market site this month, offering a wide range of discounted high-quality new goods and services from established retailers.

Called "bidnsave", at www.bidnsave.co.nz, the site will feature everything from beds and beauty care to gym memberships, building supplies and training courses, often with reserve prices which are half the retail price.

There will be a 10-day period for the first bidnsave auction, from November 23 to December 4.

After registering for free, bidders follow these simple steps:

* Submit a maximum secret bid for the product or service. Bidnsave will automatically bid on your behalf in $10 increments ($100 for goods over $10000) up to your maximum price. If your maximum price is reached before the auction closes, you will get an email asking if you want to increase your maximum secret bid.

* Follow the auction process, and the progress of your bids, on the site.

* When the auction closes at 8pm on December 4 successful bidders will be notified by email or phone, along with payment instructions. Payment can be made online, by telephone or in person.

Online shopping is becoming part of the Kiwi way of life. Browsing through the vast, sometimes wonderful, sometimes weird range of products for sale on the internet has created a new generation of keen shoppers.

Armed with a computer, credit card and an itchy keyboard finger, the endless variety and relative ease of online bargain-hunting is turning into a national pastime.

The dominant player among the 20 or so online auction and classified websites in New Zealand is Trade Me, set up by young entrepreneur Sam Morgan in 1999.

Last month, for the first time Trade Me had more than two million unique visitors, in the process surpassing Telecom's xtra as the most visited New Zealand website, according to Nielsen Net Ratings, which monitors internet usage.

Of course there are also more than 525,000 listings a week to whet a buyer's appetite, including a Swiss Army field chapel, complete with Bible holders, chalices, and embroidered linen, which was going for $250 last week.

Earlier this year a bored office worker put a paper clip on sale, and his correspondence with potential buyers sparked a minor national cult. The paper clip eventually sold for $173.

A fan, Avondale mother Lianne Shaw, explains its appeal. "I think it's the thrill of getting a bargain and you're competing against others to get it."

She has bought artwork and baby gear online, and at other times just browses to see what's on offer, or to laugh at inane questions from buyers.

Telecom is set to launch an online trading site soon, and although details have yet to be released, industry sources believe it will team up with major retailers selling new, rather than secondhand goods.

Shoppers embracing this brave new virtual market largely report positive experiences, according to a recent Consumers Institute survey. Of the hundreds who replied to the institute's query about online auctions, almost everyone was satisfied with their business. Most were happy to keep their purchases small and to buy from other amateur traders.

The basic rules are that if you buy from another amateur trader in an online auction, you do so at your own risk, with no legal protection unless you are the victim of blatant fraud.

Another potential problem area involves professional traders selling new goods on online sites at fixed prices or without a reserve.

The Consumers Institute believes any regular online auction trader selling at fixed or non-auction prices is covered by the Consumer Guarantees and Fair Trading Acts. These require the accurate description of goods, valid price comparisons, guarantees of repairs and spare parts for a reasonable period, and refunds.


A VIRTUAL SHOPPER'S GUIDE

For Buyers

* Check the trader's history (on Trade Me this includes feedback rating, including comments from buyers. There is also a verified address service)

* Contact the seller and ask questions about the goods

* Check the item's retail price. Not all auction prices are a bargain

* Factor in postage/freight costs

* If it sounds too good to be true, it's probably stolen

* If your bid succeeds, keep a printout of the listing to check against delivery

* If you can, pay by credit card. You can reverse the transaction if the goods don't turn up

* Contact the seller promptly after you have won an auction, and pay straight away

For Sellers

* Check the site's fees

* Set realistic starting/reserve prices

* Describe the item accurately and attach a photo

* Make sure your sale terms are clear and indicate shipping costs

* If not using an escrow service, don't send the goods until you have been paid

* Send the goods promptly, in accordance with your agreement

Source: Consumer Online

- THE AUCKLANDER