Live Bidding
Live bidding or online bidding is when you bid in an auction over the internet. To bid online you will need a stable internet connection and a computer/laptop, phone or tablet. This is increasingly becoming the most popular way for people to bid in auctions as they get the advantage of bidding in the room whilst not having to leave the comfort of their own home. However, there are a few things to know before using this method.
The main thing to be aware of are the charges. The majority of live bidding providers have a surcharge that they charge the auctioneer which is passed on to the buyer. This currently ranges from 0% to 4.95% of the hammer price plus VAT. If you win a lot you will be paying the hammer price plus buyer’s premium + VAT and the live bidding surcharge +VAT. So for a lot sold for £1000 with a 25% buyer’s premium + VAT and a live bidding surcharge of 4.95% + VAT you would be paying a total of £1,359.40 (£1000+£250(+£50)+£49.50(+£9.90)=£1,359.40).
It is becoming more common for auctioneers to cover the live bidding charges themselves to encourage people to bid with them rather than other auction houses. The live bidding provider is still charging the same amount to the auctioneers but it is not being passed on the buyer. This is called bidding parity as bidders will pay the same as if they were attending the sale physically. This will usually be heavily advertised by the auction house as they are covering the charge. They will have banners with 0% on their homepage and make it very clear on their ‘how to bid’ pages.
The most commonly used live bidding platforms in the UK are the-saleroom.com, invaluable.com, easyliveauction.com and liveauctioneers.com. These are all aggregators as they list lots being sold by multiple auction houses in one place. Once you have an account with one of these websites you can bid on any of the lots listed on the site. For more information about their charges please read their terms when creating a new account.
Auctioneers are also increasingly offering live bidding through their websites. This is either by using bespoke software, using proprietary auction software or by using a ‘white label’ service provided by one of the platforms.
Larger auction houses will sometimes have bespoke software that is only available to them. This is quite rare though as development costs are high so you need to have a solid customer base and track record to justify the cost. There are plenty of companies providing auction software but the two biggest players in the antique market are Auction Mobility and Bidpath. Auctioneers will use these companies to provide their live bidding, and because it isn’t a bespoke build the cost is much lower. Finally, and most commonly used, is ‘white label’ bidding provided by the live bidding providers. In the UK this is most commonly the-saleroom.com. This uses their live bidding functionality but is not branded with the-saleroom.com logo, hence the name ‘white label’. It is fairly clear if this is the case though as the bidding window is identical to the-saleroom.com standard layout. If an auctioneer is using this method of providing live biding through their website there will still be a charge. Currently the-saleroom.com charges 3% for white label bidders rather than the full 4.95% charged if bidding through their site. Again, this may be covered by the auctioneer as described earlier, so look out for any information provided about live bidding charges.
Bidding online is a fairly simple process. You will need to create an account either on the auctioneer’s website, if they provide the functionality, or on the live bidding platform website. You will need to enter your details such as your name, address, phone number, email and marketing preferences (GDPR). With the new Anti Money Laundering legislation, it is also becoming more common for auctioneers to ask for ID before allowing you to bid. This is usually a photo ID (passport, driving licence etc.) and a proof of address (utility bill, bank statement etc.). Please keep this in mind if you are creating a new account and register early to avoid any issues. You may also need to register a card on the website as a further check to validate your identity.
Once your account has been successfully created you will be able to bid live over the internet. Auctions are fairly fast paced so be alert when leaving a bid. Saying that, auctions used to easily surpass 80-100 lots an hour but since online bidding has become more popular this has reduced to around 60-80 lots. This is because there is always a lag between what is happening in the saleroom and what is happening online. The auctioneer needs to account for this hence the slower selling rate. As a bidder, you should also be aware of the lag when bidding online. It is not an exact science but the best advice I can give is to bid early. If the auctioneer feels there is no further interest he will put his hammer down and you will be too late. Therefore, you should place your bid as soon as possible. The best way of avoiding hesitation is to have a plan, have a bidding limit and stick to it. Obviously, this is easier said than done. There is such thing as auction fever and it can be easy to get carried away.
This concludes my article on live online bidding. If you wish to learn more about other methods of bidding please see the other articles on this topic in my guide.
