What is an online auction? Buyers compete with one another to buy goods owned by a person who currently has posted the item that is being bid for. Or it could be for goods that are offered by a company or clearing house.

Most auction sites, like Rediff Auction, require you to become a member before you can make your first bid. You'll also have to provide your shipping and billing information.

Once registered at Rediff Auction, use your user ID and password to bid. If you make the highest bid, the payment for the goods and the cost of shipping becomes your responsibility.

What should I look out for?

• Shipping and delivery details: Are they included in the cost?
• Location of the article being offered: It will be unwise for a Delhi resident to bid for a vacuum cleaner in Mumbai.