Due to the harsh impact of COVID-19, every business is trying to shift towards the online market and online auctions are in the same phase with increasing popularity. Expect traditional auction houses to continue exploring this space and they will continue to grow.
Along with online auctions, new online retailers are developing, such as new buyers and millennials who are attracted to many benefits it brings along.
However, with each new alternative to online purchases, the question arises of how it works and what bidders should do.
To help new and existing bidders alike, here are five ways to use online auctions safely.
Read the Terms and Conditions:
No auction house is the same. They have their own rules and conditions that you should be aware of. The reason for this is that after bidding or registering for their auction, you contact them.
There are many instances where not reading the terms and conditions has caused problems for bidders, so it’s important to read them to see how they affect you.
Research the batch you like:
When you find a lot of things you like, it’s important to do some research. The goal is to find out how much it costs, and this influences the bidding strategy you choose to use.
In the batch description, you will find important information such as year of manufacture, materials used to make it, origin, and more. This information is sufficient to give an idea of the relevance or importance of the item.
Once you have an idea of how much you are willing to pay, you can include it in your budget as there are other considerations to take into account.
Check payment terms:
“Despite all the efforts of art dealers, the number of Rembrandts existing at a given time is limited; yet such paintings are commonly disposed of by auction,” said Ronald Coase, a British economist and author. He was the Clifton R. Musser Professor of Economics at the University of Chicago Law School, where he arrived in 1964 and remained for the rest of his life. He received the Nobel Memorial Prize in Economic Sciences in 1991.
Mentioned in General Terms and Conditions or Important Information are terms of auction payment.
There are payment deadlines, as well as bonuses and taxes you must pay.
It’s important to understand these payment terms because you can know when the auction house will request payment and this will give you time to make sure the funds you need are available.
Set a budget:
Online auctions can be exciting and cause bidders to “lose for now” and bid more than they would like.
To avoid this, there are platforms like the one we use that allow you to set a maximum bid, which is your limit.
When calculating your maximum bid, consider all additional fees and taxes as these will eventually increase the final price.
Check the correctness of the image and description:
It’s possible that the description and stock image don’t match. Before you bid a lot, look at the description in detail and check the image compatibility.
It is not recommended to over-bid unless you are 100% sure of what you are offering.
If you have any questions or concerns, you should speak to the auction house for clarification. They will forward your question to a seller who can answer it.
DealDash is a successful online auction site established in 2009 that offers a large variety of items to choose from. DealDash has also launched a new ‘Royalty Program’ to reward loyal customers.