The auction house has been both romanticized and parodied on television and in movies. And if you’ve only seen the cartoon and Pink Panther versions of an auction, you probably imagine a fast-talking auctioneer in coattails selling increasingly valuable wares – a collectible car, a famous actress’s jewelry, and on and on.
But technology doesn’t discriminate – it’s infiltrated every industry from marketing to manufacturing, and the auction house has changed significantly as a result of new internet bidding and technology capabilities.
Online and simulcast auctions have taken the industry in a new and exciting direction – and as with any change, there are some ups and downs.
They’re great for bargain-hunters: Deal-seeking buyers get some serious perks with internet bidding, because they can search all over the world to find the item they want and then compete for the best price – all without ever leaving the comfort of their own homes. This convenience and accessibility has attracted almost a third of all online customers to participation in an online auction.
They’re more accessible: Because it is more convenient and cost effective for buyers to participate in the auction process from home, many auction houses have adjusted their services and developed a greater online presence. Live auction webcasting is becoming enormously important for auctioneers who want to expand their reach. This process dramatically expands the number of bidders and potential buyers participating in auctions. Not only does webcasting increase the number of potential bidders – it also encourages some healthy competition, which generally leads to higher bids and higher profits for the auction house.
It gives more exposure to small auction houses: Due to both auction houses increasing their online presence and consumers spending more and more time online, consumers are better able to find out about smaller auction houses that they might never have heard of without online exposure. Smaller auction houses are better able to compete with larger, more established companies.
On the flip side, there are some disadvantages to completely switching over to auctions online and auction webcasting.
Lack of physical engagement: Some auction houses are converting completely to online auctions, which don’t always maintain the excitement of a live auction. And consumers can’t touch or handle the items they want to bid on beforehand.
Added expenses: If the winner of an auction places their bid through internet bidding, they are required to either pick up the merchandise at a later date or spend the extra money to have the item shipped and delivered. While buying at an in-person auction does come with its own fees and travel expenses, it also promises instant gratification – which is lost when you buy online.
With all of its benefits and challenges, the innovation of internet bidding has drastically changed the way we view and participate in live auctions.
Here at Dakil, we embrace technology that helps us reach more people and be more efficient – without compromising our in-person experience. We offer simulcast bidding to accommodate anyone who wants the real auction “experience” coupled with the comforts of home. The history of online auctions is only just now beginning, and we’re excited to see what the future holds in regards to new technological developments!
