Excerpt: Journal of Advanced Appraisal Studies - 2011

Fellow appraiser and auctioneer Logan Adams, ISA CAPP wrote an interesting article about online auction platforms. Logan uses auction platform software in her business and brings a great perspective as both an auctioneer and appraiser as to how these online auction platforms operate. Although appraisers dont necessarily need to know how the details of how these platforms work, it is typically better to have a little knowledge of the back room operations and an understanding of how some of these platforms work and influence the market as well as buying and selling habits.

Logan Adams writes in Auction Platforms in the Expanded Market

With the step-up in platform, the auction house staff will still prepare merchandise in lots to be offered.  As the level of merchandise increases, there will typically be more single item lots.  The preparation of lots will also require similar timing as with the live only auction, however it will be critical to get the inventory entered in the computer at least two weeks prior to the auction for viewing by Internet bidders.  This will give internet bidders sufficient time to have their questions or requests for more detail addressed by the auction house.  Lots can be grouped under broad catalog headings to facilitate the bidder’s ability to find items that are of interest to them.  With the Internet participation items must be photographed and described in more detail.  The audience, even in the local area, will come to depend on detailed photographs, descriptions and thorough condition reports.  There can be a maximum of 25 photos uploaded for each item or lot, but rarely if ever would that many shots of an item be used.  Successive upgrades in auction platforms may not allow such a large number of photographs per item or lot.  Regardless of the number of photographs allowed, there will be one full size shot and the rest will be thumbnails that can be pulled up and made full size with a click.  Of course a good digital camera capable of close-ups is necessary.  Some local people will still come and preview items in person but the Internet will reach those that either cannot come the distance to preview or those that elect to rely on the expanded information available to them.  So, the information provided must be honest and of a quality to assure confidence in the Internet bidders.

There are some down sides to combining the Internet and the live auction.  This level of auctioning will see a definite increase in staff time photographing and writing descriptions.  An Internet Administrator must be in place to monitor the Internet connection and to bid for the Internet.  Shipping of items will increase as an auction is offered to larger audiences both in the States and abroad.  Bidders are rightly concerned about shipping costs and every effort should be made to control these costs as much as possible.  Of course, handling charges are incurred.  Whether shipping is farmed out or handled in-house, staffing involvement will increase.  If in-house shipping is the answer, a staff position may need to be added.  As stated before, do not be surprised to see that with an Internet association the local audience may decrease in size.  Local bidders may come to the live auction and bid, leave the auction and bid on the Internet from home and then return to bid again at the live auction.

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