Deciding it was time to turn their hobby into a side income, Leslie and Page Leber were ready to hit the flea market circuit or rent space in a local antique shop when they got a better offer -- one that allowed them to buy and sell their sports and beer memorabilia from the friendly confines of their study.
What the Timonium couple discovered was the Internet auction, which transports folks like the Lebers to a huge international marketplace at the click of a mouse.
"It's been fantastic," says Leslie Leber. "We were hearing about [Internet auctions], so we thought, let's get a computer and see. It's amazing we're able to sell all over the world."
There are dozens of online sites that cater to the traditional habitues of auction houses -- individual buyers and sellers -- and a handful run by businesses that use the auction format to hawk new merchandise.
They're all easy to use. After registering and receiving a password, potential buyers can scan a list of objects by category (say, post-1980 comic books) and see what tickles their fancies. Or they can use a search tool to look for a specific word (diamond, for example) and see what's being offered.
Buyers are generally admitted free -- if they win, they deal directly with the seller. Auction sites make their money by charging a listing fee to the seller, usually based on the opening bid, and by collecting a percentage of the final price.
"It's hard to beat the deals," says Richard Parker, who has used online auction sites to build his laser disc collection. "When I need something, I can usually find it."
Sellers benefit as much as buyers. Auctions sites have not only democratized the collectibles market -- making everyone with a computer a potential dealer -- they've also increased the scope of the marketplace, unearthing items that would normally languish in basements and attics.
The results can be surprising: One local seller found what looked like a miniature sewing machine in his grandmother-in-law's basement and figured he'd gamble a quarter to list it on the Internet. It fetched more than $700.
"You can reach people everywhere," says Jennifer Mudd, who sells sports collectibles from her desk in Ocean City. "If you've got a St. Louis Cardinals program, people around here may not be interested, but [Internet auctions] make it so you can reach people in Missouri."
The granddaddy of Internet auction sites is eBay (www.ebay.com), a San Jose, Calif.-based company that has listed more than 75 million items for sale since its birth in September 1995. Today eBay claims 1.3 million registered users, offers more than 1,000 categories of merchandise and sees 250,000 new items listed for sale each day.
If you're looking for an Ideal Haunted House game from the early 1960s, a vintage photograph of silent film star Mabel Normand, a New Mexico road map from 1957 or an unused concert ticket from the Rolling Stones' 1981 American tour, eBay is the place you're most likely to find it.
"Five or six years ago, a lot of these people were limited in their ability to buy collectibles or sell them," says eBay spokesman Kevin Pursglove. "They could go to shows at their local fairgrounds, garage sales, flea markets. But now, with the aid of a computer and a modem, you can essentially talk to anybody in the world about an item you want to buy or sell."
The company has been a financial success as well -- at least for its principals and investors. When eBay went public in August, shares sold for around $18 on the NASDAQ exchange. The stock closed Friday at $142.
Predictably, success has brought its share of problems and griping from buyers and sellers alike. While eBay may be a great source of esoteric items, critics say, it's not always the place for bargains. Hordes of inexperienced and overzealous bidders often drive prices above market value.
During peak periods, eBay is also hard to get onto and slow to respond. Chat rooms devoted to the site are filled with buyers complaining that they couldn't call up an item for a last-second bid (auctions last three, five or seven days) Sellers complain that they lose money because potential buyers are frozen out.
System crashes aren't unknown, either. In December, eBay was down for 18 hours when a software upgrade turned sour (a testy management suspended several users who complained about the outage on eBay's customer support board). To make up for the down time, all auctions affected by the outage were extended 24 hours.
While none of the other auction sites can match eBay in quantity or variety, plenty are trying. Among the up-and-comers are Auction Universe (www.auctionuniverse. com), a subsidiary of Classified Ventures LLC, which is owned in part by The Sun's parent Times Mirror Co.; City Auction (www. cityauction.com); Yahoo! Auctions (auctions.yahoo.com), which is probably second to eBay in number of items for sale; Bid Away (www.bidaway.com); Sky Bid (www.skybid.com) and Absolutely Everything's Up for Auction (www.up4auction.com).
Like many destinations on the World Wide Web, auction sites require a warning label: caveat emptor. Because buyers rarely know much about the people they're buying from, it pays to be a careful.
If someone offers an Abraham Lincoln autograph at an opening bid of $9.99, it might be a good idea to question its authenticity; in fact, with items such as autographs -- which can be easily forged -- skepticism is downright healthy.
While the majority of online sellers are honest, there are a few bad apples. Most active buyers have a tale or two of items they paid for but never received, and nearly every seller has experience with high bidders who never get around to sending their money, or who pay with a bad check.
When bad things happen, you're often on your own. Auction sites generally don't do much self-policing, although eBay and others have formal feedback systems that give buyers and sellers a chance compliment or complain about each other.
Sometimes this can get nasty. Last year, a Canadian bidder sued an Eastern Shore seller in federal court in Baltimore in a dispute that started when an $1,800 Barbie doll that was advertised in good condition arrived falling apart.
The seller claimed the doll was damaged by the buyer or an "act of God," and after a bitter exchange in eBay's feedback forum, the buyer demanded $200,000 in damages because her reputation had been besmirched. The suit is still pending.
Although outright fraud on eBay and other sites is relatively rare -- less than one-tenth of 1 percent of all transactions, according to eBay -- it certainly occurs. In fact, more than 70 percent of all fraud complaints registered by the National Consumers League involve Internet auctions sites, according to league spokesman Cleo Manuel. The average loss is more than $200.
"More and more, people have discovered these online auction sites, and they've exploded in popularity. We've seen more and more consumers who may not have online experience going there. If you're spending a lot of money, you may want to do more homework," Manuel said.
Manuel suggests using an escrow service, a firm that acts as a third party and holds the money until the item is delivered. A credit card is also a good option if the seller accepts one because you can dispute a charge if the seller doesn't deliver or an item isn't as advertised.
Sometimes, however, the best course is to pursue a charge of mail fraud if the merchandise is delivered through the U.S. mail, which is often the case. Complaint forms are available in post offices.
The Postal Inspection Service is working with eBay on cases of suspected auction fraud, according to spokeswoman Lisa Holman. Postal inspectors are also active in Project Safe Bid, a federal task force that includes the Federal Trade Commission, FBI, state attorneys general and local law enforcement agencies.
Last month, eBay banned the sale of firearms on its site, responding to complaints that such sales were almost impossible to monitor.
Meanwhile the New York City Department of Consumer Affairs is investigating reports of fraudulent activity on eBay by a dealer in sports memorabilia, while eBay itself announced that it was being investigated by the federal government for "possible illegal transactions."
Partially in reaction to these investigations, eBay recently announced a new series of safeguards, including an optional, more detailed registration process, free insurance on transactions under $200 and a more refined feedback process.
"When the actual transaction takes place between individuals, it's pretty much up to the individuals to resolve any problems that arise," eBay's Pursglove says. "You've got to use a lot of common sense. The best friend any eBay user has is to educate themselves."
Pub Date: 03/15/99