Second-hand buyers (and sellers) beware

There are a multitude of good reasons to shop second-hand, probably more than ever before. There’s saving the planet for one, by recycling goods and minimising our carbon footprint. Cost of living is another. With the current financial pressures, buying second-hand can help keep costs down.

Sadly, though, as we see with most aspects of society, there are those out there seeking to exploit second-hand shoppers. Scammers always seem to find a way. For those of us who like to take advantage of the second-hand market – fairly – taking precautionary measures is highly recommended. So, how exactly do we do that?

The changing ways of shopping second-hand

There are a number of ways you can buy second-hand. The ‘traditional’ way for over 50s like me has been through garage sales, local markets, fetes and op shops. With fetes and op shops it was usually a case of ‘buyer beware’. If you got ‘dudded’, it was usually not deliberately so. And in such cases, you at least had the comfort of knowing your money was going to a good cause.

With garage sales, car boot sales and second-hand markets, the area was a little greyer. Sellers after a quick buck might have been tempted to exaggerate the value, quality or rarity of the item for sale. Again, though, there was a strong element of ‘buyer beware’. 

Back in the 1980s and early 1990s, there was no concept of ‘buying and selling online’. In fact, few of us even understood the concept of ‘online’. But while sites such as eBay and Facebook Marketplace were years away, there were forerunners – classified ads. These have appeared in newspapers for almost as long as newspapers have existed. In the 1970s and 1980s, dedicated classified ad publications became popular. In my home city of Melbourne, the weekly publication ‘The Trading Post’ became the way to buy and sell second-hand.

Again, similar pitfalls and risks existed, although because most sales were made face-to-face, scammers themselves were taking risks.

Protecting yourself in an online shopping world

You might still spot the occasional garage sale on your weekend drive, and op shops appear to be thriving, but the world of second-hand shopping is now dominated by online buyers and sellers. And of course – sadly – online scammers. 

Scamwatch data doesn’t show how much money is lost on specific platforms, but we know that it’s no small amount. The organisation found Australians reportedly lost $7.7 billion to classified scams last year, most of these through social networks. 

As an online buyer, how can you protect yourself? One obvious way is to commit to a purchase via cash on delivery. This works for those who are willing to make the sacrifice of travelling to meet the purchaser in person. (However, even that method of purchase is not without risks if you don’t know the seller.)

But the truth is that most buyers and sellers want the ease of an online transaction followed by a delivery. Australia Post’s core business is no longer letters; it’s parcel delivery of online purchases.

While there are protections in place for those buying new goods, the second-hand world lacks many of those. 

One thing you can do is check the seller’s history. Large online selling facilitators such as eBay allow you to see a seller’s rating, as provided by previous buyers. If you can find a seller with a 100 per cent rating over a large number of sales, your risk of being scammed is likely low.

Facebook Marketplace also displays seller ratings, via a five-star system. You will be able to view the rating and the number of buyers who have provided a rating. As with eBay, the higher the number of ratings, the more accurate it’s likely to be.

Second-hand sellers can get scammed, too

It’s not always the sellers who are the ones practising to deceive. Some buyers will ‘try it on’, too. One way they attempt to do so is to claim a legitimate courier (such as TNT) is on their way to pick up the item and pay cash. But this requires the seller to pay ‘insurance’ first. The buyer then pays the ‘insurance’, and the courier never arrives.

There are a number of other ‘early shipment’ tricks scammers will attempt. The best thing to do as a seller is not to ship until payment has been received in full.

Whether buying or selling second-hand goods, there’s always the risk of coming across a scammer. It pays to be alert and think twice. If you have any doubt, steer clear of the buyer or seller.

Whenever you’re planning to buy or sell, check in first with sites such as Scamwatch to see what tricks are currently ‘in vogue’.

Trust can be a wonderful quality in a human being. Sadly, it’s one that’s probably best put on hold in the world of second-hand shopping.

Have you bought or sold second-hand goods online? How was your experience? Let us know via the comments section below.

Also read: Branch closures and bank scams – is there a link?

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Andrew Gigacz
Andrew Gigaczhttps://www.patreon.com/AndrewGigacz
Andrew has developed knowledge of the retirement landscape, including retirement income and government entitlements, as well as issues affecting older Australians moving into or living in retirement. He's an accomplished writer with a passion for health and human stories.
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