AUCTION HOUSES RAMPING UP ONLINE SALES

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V23 2020 INDEX E-SYLUM ARCHIVE

The E-Sylum: Volume 23, Number 18, May 3, 2020, Article 15

The Antique Trade Gazette reports positive results for recent online sales. -Editor

After a month's hiatus, a number of top-tier regional auction houses are returning to the rostrum to conduct â€˜live online' sales.

In accordance with social-distancing rules, these will typically be held by an auctioneer alone in the saleroom with the input of a handful of staff working remotely. Some firms will also be using timed online auctions.

Mallams, one of many UK regional firms that temporarily closed their doors on March 23, has taken the decision to begin selling remotely in early June via live online only auctions. "After looking at recent sales, and particularly the online-only Asian art sales that Christie's have run for a number of years, we felt this was the format that we should adopt," said director Robin Fisher.

The revised calendar will include the firm's traditional two-day sale of Asian art in Cheltenham (now scheduled for June 3-4), with more than 700 lots, and an Oxford two-day of Jewellery, Watches, Silver & Objets de vertu sale on June 17-18.

The merchandise offered was consigned pre-lockdown before the saleroom closed and many of the staff placed on furlough. While Mallams is continuing valuations by remote means, Fisher said the firm is not physically receiving any new consignments.

"Travelling to a saleroom does not qualify as an essential journey and using couriers presents unnecessary risk. We have decided to wait until the offices reopen."

However, provisions have been put in place to provide â€˜contact-free' delivery to buyers by courier, and free storage is being provided until travel restrictions are lifted.

The new normal
Online sales â€“ whether live online only or timed online â€“ have become the new normal in the market since March with strong results posted in a wide range of categories, encouraging more auction houses to move to this format.

For example, Gorringe's weekly sale held as live online only on April 20 attracted more than 900 bidders on thesaleroom.com and achieved a sell-through rate of more than 92%.

A timed sale of watches held by Fellows that ended on the same day attracted 1600 registrants â€“ a house record for a timed sale â€“ and achieved a healthy 87% sell-through rate.

Sales formerly postponed by Special Auction Services and Hansons are also being rescheduled as online events.

But the picture isn't entirely rosy. Here's a take on the art market from The Hustle email on April 28, 2020. -Editor

Sotheby's is losing millions because online auctions just aren't that exciting

Ultra-wealthy auction buyers going virtual -- but that's bidder news for big-name houses like Sotheby's and Christie's.

With in-person events canceled, the number of online auctions jumped by 63% over the past month. And last week, Sotheby's set a new online record, roping in a $6.4m sales haul from one event.

The downside: That pales in comparison to its in-person auction record of $110.7m. Those shortfalls forced Sotheby's to furlough 12% of its staff.

Do I hear frugal spending?
The average sales price in March clocked in at ~$6.9k -- well below the $40k+ average throughout 2019.

This isn't a story of rich people getting stingy because they blew all their money escaping to secret disaster bunkers. The real reason may have to do with the blandness of the virtual bid.

Online auctions are a little too rational
The culprit is a phenomenon called "auction fever" -- the adrenaline spike that pushes people to spend more than they ever intended to in the heat of a bidding war.

Packed into a room, surrounded by colleagues, listening to the auctioneer shout out dollar figures, bidders go bananas.

It's such a problem that wealthy bidders sometimes send out minions to bid for them -- in part to ensure they don't spend above their max price.

Typing a bid into your computer from your living room just doesn't have the same thrill.

How is the online effect impacting the numismatic world? When all this started the transition to online auctions seemed to go pretty smoothly for the major houses. Even the marquee big-ticket items sold, although some thought the prices were a little soft. What about the auction fever effect? Could that be a cause of softness?

As an engineer and a buyer I'm all for the rationality of individual online bidding. Yet I don't think live online sales are lacking when it comes to the auction fever effect. You don't have to be there in the room to get excited over the prospect of winning a prized item or get angry or fearful over the prospect of losing out. -Editor