In recent years, especially after the pandemic, online auctions gained popularity. It's pretty different from the in-person auction and has pros and cons. So, let's break down how to shop for an online auction successfully.
Let's talk about the difference between in-person and online auctions.
Before I found my passion in DIY during motherhood, a new stage of my life, I got an education in Art Business and was fortunate to work at an auction house in New York City.
But I won't be talking about the backstage or the auction. We are here to learn from a consumer perspective. I hope my insider knowledge will help you become a successful online auction shopper.
I'll be talking mainly about estate sales, downsizing, and more everyday items like furniture, paintings, and home decor, not about multi-million-dollar art pieces you can find in big auctions. One day, I'll tell you about my experience buying a Monet, but not today, haha
My favorite platform at the moment is Auction Ninja. It's sort of a marketplace for all local auctions. You type in your zip code and see all the auctions in your area. I've been shopping with them for almost two years and have some great finds!
How do you find online auctions?
The website I use the most is Auction Ninja. You can search online auctions in your area based on zip code. It’s very convenient if you don’t want to deal with shipping - the auction sets up a location for a pickup, and you can get your item in a few days.
Another website that I use is Estates.net. In my opinion, it’s more complicated than Auction Ninja to navigate, but it also has excellent estate sales. Some are in person, which is great because you can examine the items in person.
Read reviews and testimonials from other users to gauge the platform's reputation and reliability. Each auction site may have unique features, so understanding the platform's nuances is crucial for successful bidding.
Tips on how to successfully shop an online auction
Tip 1. Don't become emotionally invested
People tend to get an adrenaline boost when the auction is about to end. "There is this mirror you've been looking at for a few days now, and you absolutely MUST have it!!!"
"How dare someone bid again? I must have it!"
If you have ever participated in an auction before, you know that feeling! You get into a race and start bidding just for the sake of bidding (I know from experience). The adrenaline pumps through your veins, and you bid higher. If both parties get into a bidding war, one of them will get an overpriced item and most likely regret it later.
To avoid it, don't get emotionally invested, and keep your head cool while bidding.
Tip 2. Research, research, research
When you initially look through action listings, make sure to research items that you like before you invest.
A few months ago, I found a beautiful porcelain statue of a tennis player girl. I already have a ballet dancer statue and thought it would be super cool to compliment it with a tennis player girl.
When I started bidding, I instantly saw that someone was also invested in this statue. Every time I'd bid, someone would outbid me. When it was at $25, I felt I must have it. When it got to $100, I still wanted it, but it was more of a competition at that point - "Don't let that person on the other side win."
When the price reached $120, I took a deep breath and started researching. I googled "tennis player with a racket porcelain statue," it didn't take long to find the same one on eBay. After some analysis, I realized I could purchase the same one in similar condition for $160. That determined my maximum price. This brings me to the next point.
Tip 3. Set up your maximum
I ended up letting go of that statue for $160 since I knew it didn't make sense to continue bidding if I could get it cheaper on eBay.
For a successful online auction experience, research before closing and set the maximum price you are willing to pay. It could be based on research or "how much I could or want to pay for this."
Make sure to stick to the price, and you'll be satisfied with your purchase.
If I continued bidding on the porcelain figure and ended up paying more than I would on eBay, I'd be deeply disappointed.
Having a maximum price for your state of mind is also essential so you don't pay way more than you originally planned.
The next tip is also essential.
PIN IT FOR LATER
Tip 4. Know the specifics of the auction
Different auctions have different rules, but one thing is for sure - you'll have to pay the buyer's premium.
What is the buyer's premium?
It's an additional charge to the hammer price of an auction item.
Actions charge different percentages, but they always charge it.
Most local auctions I shop at have an 18% buyer's premium. So be mindful when you bid that you must add local taxes and buyer's premium.
You should also know about bid increments, which refer to how much the price rises at a certain point. I believe it is $1 until $10; then increments are $5 till $50, $10 till $100
Tip 5. Always check dimensions
I can't stress this enough since I made this mistake many times.
Always read the item description carefully and examine the provided images. If available, request additional pictures or information from the seller to ensure you clearly understand the item's condition and authenticity. Research the market value of similar items to gauge whether the starting bid or reserve price is reasonable.
I won this brass kindling basket for $10 and, at pick up, was not pleasantly surprised to see that it’s way bigger than I imagined. Oops! It worked fine in my space and looks terrific on my DIY brick hearth, but I thought it was smaller.
I also won crystal classes, only to find out at pick up that there are not wine glasses but shot glasses, which are way smaller than I thought.
So always check the dimensions!
What is the best way to bid on an online auction?
A good strategy is very important when it comes to online auctions. If you follow a few simple steps, you can win great things cheaply.
Bid an odd amount
If you bid an odd amount, you will have more chances to win the bid. For example, instead of bidding $100, bid $100.53. In this case, some people would stop bidding at $100, and you can win the item by a few cents.
Wait to bid until the end
If you start bidding immediately, you might notify other bidders that you are interested in the item, creating the demand. If you wait till the end and jump into it before closing, you have a higher chance of getting the item at a lower price and having less competition.
A good strategy would be to put a “like” on the item, set an alarm notification for closing, and bid 10 minutes before closing. Remember that if you bid before closing, the timer will reset and give you and other bidders five more minutes to place the bids. If you didn’t drive the price up from the beginning, there is a high chance you will get your item at a lower cost.
As I mentioned, you need to research when you set up your maximum before the bidding starts. But if you are in a heated bidding war at the closing, you can always use these extra 5 minutes to do a quick online research to see if it’s worth the price that it’s going for.
Set reminders for closing
So you “liked” an item, set a reminder to notify you 10 minutes before the item is about to be closed. Jump in at the last minute to bid. This way, you won’t encourage other bidders to bid too early, and you’ll have a high chance of winning an item at a low price.
Consider proxy bidding
Proxy bidding is when you set your maximum amount and let the computer automatically bid for you. You will pay that amount if the item is won below the set price. It’s very helpful if you are not present at closing and do not watch your item.
It's a good practice to set the maximum price you will pay for an item.
I hope this post was helpful!
Good luck bidding, and let me know your tips and tricks for successfully shopping at an online auction.
Follow me @ifonlyapril on Instagram for more tips and tricks
xoxo,
April
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