E-auction can be defined as a market mechanism by which sellers place offers and buyers make bids which conducted online and is characterized by the competitive and
dynamic nature by which the final product is reached. There are many information available to both buyers and sellers in this market such as prices, product, current supply and demand. Example for e-auction is http://www.lelong.com.my/.
Since the buyers cannot look at the items directly, they may get defective items. The fraud rate are become higher and higher. To protect the buyers and sellers in the e-auction, there are several measures in an effort to reduce fraud. Following are action to prevent e-auction fraud:
Authentication service is used to determine whether an item is genuine and described appropriately. Authentication is very difficult to perform because it needs training and experience. So, only the experts can detect the counterfeits based on subtle detail.
Escrow Services is a licensed and regulated company. They collect, holds, and sen
d a buyer’s money to the seller according to instructions agreed on by the buyer and seller. Once the buyer receives the items and approved, the escrow service will sends the payment to the seller within the agreed time frame. Example for an escrow services is http://www.iescrow.com/.
User identify verification is a program that use to verify the user identity. For example, eBay uses Equifax services to verify the user identities. Verified eBay User is a voluntary program that encourages users to provide eBay with the information for online verification. By offering their MyCard number, driver’s license number, and date of birth, users can qualify for the highest level of verification on eBay.
Feedback forum is to allow the buyers and sellers to build up their online trading reputation. It also provides the user with ability to comment on their experiences with other.
Nonpayment punishment is to protect the sellers. For example, eBay implemented a policy against those does not honor their winning bids. There will be friendly warning for the first time nonpayment. In the second time, they will issue sterner warning. There will be 30-days suspension for the third offense and the indefinite suspension for the fourth offense.
Appraisal services are a variety of methods used to appraise items. This including expert assessment of authenticity and condition and reviewing what comparable items have sold for in the marketplace in recent months. However, it is only useful at the time appraisal done since the market products changing rapidly.
Verification is a way to confirm the identity and evaluate the condition of an item. Neutral third parties will evaluate and identity an item through a variety of means.
dynamic nature by which the final product is reached. There are many information available to both buyers and sellers in this market such as prices, product, current supply and demand. Example for e-auction is http://www.lelong.com.my/.
Since the buyers cannot look at the items directly, they may get defective items. The fraud rate are become higher and higher. To protect the buyers and sellers in the e-auction, there are several measures in an effort to reduce fraud. Following are action to prevent e-auction fraud:
Authentication service is used to determine whether an item is genuine and described appropriately. Authentication is very difficult to perform because it needs training and experience. So, only the experts can detect the counterfeits based on subtle detail.
Escrow Services is a licensed and regulated company. They collect, holds, and sen
d a buyer’s money to the seller according to instructions agreed on by the buyer and seller. Once the buyer receives the items and approved, the escrow service will sends the payment to the seller within the agreed time frame. Example for an escrow services is http://www.iescrow.com/.User identify verification is a program that use to verify the user identity. For example, eBay uses Equifax services to verify the user identities. Verified eBay User is a voluntary program that encourages users to provide eBay with the information for online verification. By offering their MyCard number, driver’s license number, and date of birth, users can qualify for the highest level of verification on eBay.
Feedback forum is to allow the buyers and sellers to build up their online trading reputation. It also provides the user with ability to comment on their experiences with other.
Nonpayment punishment is to protect the sellers. For example, eBay implemented a policy against those does not honor their winning bids. There will be friendly warning for the first time nonpayment. In the second time, they will issue sterner warning. There will be 30-days suspension for the third offense and the indefinite suspension for the fourth offense.
Appraisal services are a variety of methods used to appraise items. This including expert assessment of authenticity and condition and reviewing what comparable items have sold for in the marketplace in recent months. However, it is only useful at the time appraisal done since the market products changing rapidly.
Verification is a way to confirm the identity and evaluate the condition of an item. Neutral third parties will evaluate and identity an item through a variety of means.
3 comments:
thanks for the information that u gave....
its help alot to the person that who are involved with the e-auction activities.
it really useful information to the buyers and the sellers which have involved in the e-auction.
there are too many threat and if we did not take prevention to prevent it, it our lost.
however, although prevention are taken, it is impossible that the frauds are being completely avoided. but it helps alot to us.
you're right tenny. although the prevention is taken, it cannot completely avoid the threat of the e-auction.
Post a Comment