For buyers

• Under the current law for online transactions, you’re only protected under the Consumer Guarantees Act if you buy for personal or household use (not business use) and you buy from someone in trade and you buy from an internet auction at a fixed price like “Buy Now”.
• Bidding on an online auction almost always means you have no consumer rights. The sole exception is if you are misled about the condition of the goods.
• Never bid on a new item sold by a trader or business in an online auction unless you’re prepared to forfeit your consumer rights.
• Check the trader's history, if it's available.
• Check the site community message board regularly for advice and warnings.
• Check the advice for safe trading on the auction website.
• Only use address-verified traders. And get an address from the trader before you pay them money - it might make them easier to trace if you need to contact them later.
• Check the item's retail price. Not all auction prices are a bargain! Don't get swept up in the thrill of the chase and bid more than the goods are worth.
• Factor in your likely postage/freight costs (bulky items can cost hundreds of dollars to deliver). And NZ Post prohibits posting some items.
• Consider insuring expensive items against loss or damage in transit.
• Use an escrow service when dealing with new traders, high value items, or when dealing with overseas traders.
• Ask questions. Experienced buyers recommend asking lots of questions before you bid. If you know about the product, ask questions even if you don't intend to buy. The responses will help inform other members.
• Make sure you know what you are buying. For example, it's not unusual to sell digital cameras and their memory card separately. Do the goodies come with memory, battery, leads, charger, bag etc?
• When you buy from a professional trader, ask the seller how long the product is expected to keep working under normal conditions. That will give you an idea of your Consumer Guarantees Act rights.
• When you buy from a professional trader, ask questions about guarantees. Who is the guarantee with - the seller or a local agent? If the seller refers you to a local agent, check with them before you bid - it might just take a phone call or e-mail.
• Be realistic about what you are getting. Don't spend hundreds of dollars on products that are likely to need backup advice or service.
• If you are buying a major item such as a vehicle, boat or caravan, check the Personal Property Securities Register - a register where information on money owed on personal property is recorded.
• Contact the seller promptly after you have won an auction, and pay straight away.
• Be suspicious of traders who won't let you collect your purchase. They may be trying to make themselves hard to find.
• Print and keep a copy of the original auction posting and any communication with the seller. You'll need it to check the item you receive matches the item pictured or described, and if you need after-sales service.
• Never send cash or telegraphic transfers. Use internet banking, cheque or money order so the transaction can be tracked
• Pay by credit card if you can. You can reverse the transaction if the goods don't turn up - this is called a Chargeback.
• Don't deposit money in overseas bank accounts.

For sellers

• Check the site's fees and factor them into your calculations.
• Set realistic starting / reserve prices.
• Describe the item accurately, and attach a photo if possible.
• Make sure your terms of sale are clear, and give an indication as to shipping costs.
• If not using an escrow service, don't send the goods until you have been paid (and if paid by cheque, until the cheque has cleared).
• Send the goods promptly, and in accordance with your agreement with the buyer. We recommend using a post or courier service that allows you to track where your parcel is and whether it has been received. If the parcel never arrives you'll have to refund the buyer their money.

Disclosure: Some of our information appears on the Trade Me website by arrangement between Trade Me and Consumer NZ.