“Congratulations, you’re the highest bidder!”Those are the exciting words that make you feel like you’vetruly won something; that is, until you realize that you have topay for it.

E-bay, the auction that takes place in your own home, is a greatplace for people who want to score the trendiest, most expensivebrands, at a fraction of the price, or those who want to sell theirown stuff for cold, hard cash. Before you jump headfirst into theworld of E-bay, there are a lot of things a person should know inorder to avoid being royally ripped-off. Like most good things inlife, there’s a high risk for high rewards, and E-bay can bea gamble.

So ask yourself, what does your heart desire? Is it a JuicyCouture sweat suit worn by Jessica Simpson or a piece of chewinggum right out of Brittney Spears’ mouth? By the way, the gumwent for over $10,000 at the close of the auction. Whatever thatspecial item may be, E-bay has it.

The first step is creating a user profile by clicking on”My E-bay.” The site asks for basic information, suchas name and address, and allows sellers to view the type of buyeryou are.

The golden rule of E-bay: If you win an item, you must buy it.Be prepared, as your pulse races faster and faster and the priceincreases dollar by dollar, to commit to buying the item you win.If you fail to purchase the item there will be a negative mark onyour profile and sellers will not sell you items in the future.

The profile also gives you an avenue to see how credible aseller is. Each seller is awarded a percentage according to thenegative and positive feedback a buyer has given him or her.Obviously 100% is the best seller. Always read the seller’sfeedback before bidding on something; many times buyers complainthat the product they received is a name brand rip-off, orthey’ll claim they never received the product at all.Unfortunately that is one of the major downsides of buying onE-bay; you may be paying for a product that you will never see, andthere is a bit of trust involved.

After you decide to bid on an item, it’s important to takenote of when the auction ends. Most of the time, if you make a bidwell before the auction ends and fail to check back, you’llbe outbid. True E-bay fanatics will wait at the computer for thelast two or three minutes in the auction to bid back and forth withothers.

Many inexperienced auction-goers might make the mistake of notchecking the shipping and handling charge. For instance, you maybid $10 for an item and then see that the shipping and handlingcharge is $12. Shipping and handling could change whether or not anitem is worth bidding for.

When you’re ready to purchase an item, be sure to makeyour new pal Pay Pal. It’s the avenue that the majority ofsellers use to receive payment and it’s very simple to use.Enter your name, address, and credit card or debit card informationand you’re instantly the proud owner of that coveted E-bayitem.

Maybe buying something is the last thing you need. Your bankaccount has been running on empty for a while, but you definitelyhave some things lying around the house collecting dust. E-bay isalso a great way to make cash fast.

It’s extremely important for a seller to have a photo ofthe item on E-bay. Nobody wants to buy what they can’t see,so make sure to take a picture from a few different angles with adigital camera and post them on the site. If you’re sellingan item with an expensive name brand, be sure to get a close uppicture of the label to prove to buyers that it’s not afake.

Next step, click on the box marked “My E-bay’ andenter your information. From there, click on the link labeled”Start selling’ and it will take sellers through eachstep of the process. Then customize the sale of your product bydeciding how much the minimum bid will be, how much you will chargefor shipping and handling, what method of payment is acceptable,and if you want there to be a “Buy now” option whichenables people to buy the product without any bidding for a higherprice. You can create your own description of the product anddecorate your page however you’d like. Every item stays upfor auction for seven days.

As a warning to sellers, E-bay does charge you to place youritems up for auction. They do not tell you how much they’llcharge until the auction is over. The charge is based on apercentage of what your item sells for and if the item does notsell there’s also a small fee. For example, a pair ofsunglasses on e-bay didn’t sell, so they charged $2.30 to theseller. Usually, the small cost involved is worthwhile. E-bay is acredible name that people are willing to buy from and typicallyitems sell for a lot more money than they would at a garagesale.

As always, be cautious, but have fun, good luck, and happybidding!