eBay Australia recently posted a policy reminder about item location and encouraged users to report offending sellers (http://www2.ebay.com/aw/au/200506301748182.html). Apparently some users selling on eBay Australia will state on the eBay Sell Your Item form that the item is located in Australia, when it is in fact located overseas. One eBay seller located in Australia said of those sellers' auctions, "Postage is exorbitant, they lie about customs duties and GST, warranties are dubious, and these sellers normally have dreadful feedback."

But, he says, eBay is forcing legitimate Australian sellers to absorb GST (goods & services tax) from auctions, giving these overseas sellers yet another advantage over legitimate sellers located in Australia. (http://www.auctionbytes.com/cab/abn/y05/m06/i20/s03).

He said the overseas items have a lower bid price, but the total cost is far more when true shipping costs are added in. He said eBay expects its members to report each listing violation individually, "which is highly ineffective way to enforce a policy."

"The issue is red hot at the moment, because most sellers see eBay's selective enforcement of some policies not fair," he said. "eBay states its policies attempt to level the player field for all... However you will be hard pressed to find many Aussie sellers agreeing."