Online purchase of construction equipment just got safer -- or at least more comfortable. eBay on June 2 launched business equipment purchase protection for transactions between $1,000 and $20,000 for certain categories of capital equipment, including construction equipment. The coverage, which is free for buyers and sellers, protects U.S. buyers against fraud and material misrepresentation. Buyers using eBay's PayPal payment system already are protected up to $1,000.
eBay has been offering similar coverage for automobiles within its motors category for more than two years. Fraud so far hasn't been a big problem on eBay, the company claims. "Less than 1/100th of 1% of [all eBay] transactions result in a confirmed case of fraud," says Jay Fiore, eBay's senior manager of business and industrial marketing. The motors category generates $12.9 billion per year in volume. The business and industrial category, which includes construction, generates $1.4 billion per year.