How Do Online Art Auctions Work?
The world of art has been transformed by the internet. Online art auctions have transformed a once-exclusive market into a global, accessible space for all who love art, whether they’re avid collectors or curious new buyers.
If you’re new to art auctions, let alone online art auctions, the process can be a bit intimidating. How do you register? What does “timed bidding” mean? How do I know if the art is authentic? There’s a lot to learn, but this beginner’s guide makes it simple. Keep reading for a step-by-step breakdown of everything you need to know about bidding on art, what to expect at an auction, and how to start your collection.
What Is an Online Art Auction?
An online art auction is a digital marketplace where collectors, investors, and art enthusiasts can buy and sell artwork entirely online. Essentially, they’re a 21st-century evolution of a centuries-old tradition. Unlike traditional auctions, which typically take place in art galleries or auction houses, online auctions enable participants to view, bid on, and purchase art from anywhere in the world through a dedicated platform. These platforms often provide detailed images, descriptions, and provenance information about each piece, so it’s easy for buyers to make informed decisions without ever leaving home.
Types of Online Art Auctions
There are several types of online art auctions. This includes:
- English Auctions: This is the most common type of art auction where bidding starts at a set opening price and increases in increments as participants compete to place the highest bid.
- Dutch Auction: In a Dutch auction, the auctioneer starts with a high asking price that is gradually decreased until a participant accepts the price. This format is the exact opposite of an English auction.
- First-Price Sealed-Bid Auctions: Participants submit their highest bids privately. Once the bidding period ends, the auctioneer reviews all bids and awards the artwork to the highest bidder. This auction style is less competitive and more discreet.
- Vickrey Auction (Second-Price Sealed-Bid Auction): Similar to a first-price sealed-bid auction, participants submit their highest bid privately; however, the winning bidder only pays the amount of the second-highest bid, not their own. This type of auction encourages bidders to offer their true maximum bid without the fear of overpaying.
Auction Format
- Timed Auctions: In this type of auction, bids are placed within a set timeframe. Bidders place their bets until the auction closing time, and the highest bidder wins.
- Live Online Auctions: Live auctions are conducted in real-time with an online auctioneer. Participants can bid by mobile device or computer, as if they were physically present.
- Hybrid Auctions: These auctions combine in-person bidding with online participation, offering attendees greater flexibility.
Understanding the Art Bidding Process
Registration
Registering for an online art auction at Park West Gallery is easy and free. Simply enter your contact information and select the auction dates you’ll be attending. You’ll receive an invitation via email with all the necessary information to participate in the telecast and auction.
Browse the Catalog
Before the event begins, auction houses and galleries typically give attendees a digital catalog featuring high-resolution images, detailed description, and artist bios of the featured works. At Park West Gallery, our online auction is a unique, two-part affair that starts with a telecast. This is where attendees can preview the art, meet the auctioneers, learn about the featured artists, and even live stream directly into the studios of some of the most popular artists before the auction takes place.
Before attending any online auction, we highly recommend exploring the artwork beforehand, so you can take notes, mark your favorite pieces, and plan your bidding strategy. Think of it as your personal preview of a private art exhibition!
Bidding
Placing a bid will vary depending on the type of online art auction that you’re attending. Most platforms offer two primary methods for bidding in an online auction: manual bidding and automatic bidding. Manual bidding requires participants to enter or confirm the bid amount each time they want to raise their offer. Automatic bidding allows you to set a maximum bid in advance, and the system automatically raises your bid in small increments only when necessary. This allows you to actively participate without needing to monitor every single bid or risk of exceeding your maximum price. At Park West Gallery, our online auctions use manual bidding. Auction attendees can bid on a piece of artwork by easily clicking a button within our auction platform.
Payment and Shipping
Before you can officially claim that stunning piece of artwork, the next step is to complete your payment and arrange delivery. Most auction houses provide a secure payment process and accept multiple payment methods, including credit cards, bank transfers, or financing options for higher-value purchases.
Once payment is received, your artwork is packaged and shipped directly to your door. Park West Gallery ships worldwide via FedEx or TransGroup, and customers are responsible for any duties or taxes that may be required. Each Park West Gallery piece that is shipped is adequately insured and comes with a certificate of authenticity.
While arranging shipping, you can also have your art custom-framed, so it arrives ready to display the moment it’s unboxed.
Advantages of Online Art Auctions
Online auctions have several advantages over in-person auctions for both buyers and sellers. By removing geographic barriers, online auctions bring together collectors and artists from around the world in a shared virtual space. Advantages of the rise of online auctions include:
- Convenience & Flexibility: Attending art auctions has never been easier when you have the option to join from your phone, tablet, or computer. Online art auctions let you participate from anywhere and fit art collecting into your own schedule, with no travel required.
- Wide Selection of Artwork: Bid on artwork from anywhere in the world without needing to travel to a gallery or auction house. Online platforms open the door to artists, galleries, and collectors you might never encounter locally, giving you access to a wider variety of styles, periods, and rare pieces.
- Wider Reach & Visibility: Collectors aren’t the only ones that benefit from the convenience of online auctions. Virtual auctions attract a global audience, allowing artists to showcase their work to collectors far beyond their local market in an unprecedented way. No longer are artists limited to in-person or local attendees. Artists can gain international exposure, connect with new collectors, and expand their audience for their work.
How To Successfully Buy Art Online at an Auction
If you’re new to online art auctions, it can feel a bit intimidating at first, but it doesn’t have to be! Follow these few helpful tips to make your first Park West Gallery auction a great experience. The more prepared you are, the better your chances of walking away with a piece you absolutely love.
Set a Budget
Before the auction begins, decide how much money you’re comfortable spending. This will help you avoid overbidding in the heat of the moment and auction excitement. When setting this limit, don’t forget to factor in additional costs such as buyer’s premiums, shipping, and taxes. These are additional costs that are standard in the art world, but will impact your final total.
Research the Artwork
After you’ve registered for a Park West Gallery online art auction, you’ll receive an invitation to our telecast and auction. During the telecast, you’ll be able to preview the featured artwork and obtain information about each piece, including detailed descriptions, artist bios, authenticity, and the significance of each work. Not all galleries and auction houses have telecasts that allow you to preview artwork. Instead, a digital catalog may be available that provides similar information. We recommend learning as much as you can about the artists and the pieces that catch your eye beforehand. The more you know, the more confident you’ll feel when placing your bids.
Familiarize Yourself with Auction Terms & Guidelines
Each auction will have its own set of rules that outline important details such as bidding increments and procedures, payment timelines, shipping policies, and more. Make sure to review the guidelines and terms of the online art auction so you know exactly what to expect.
Check Provenance
In the art world, provenance refers to the documented history of an artwork’s ownership. Strong provenance increases value and helps prove authenticity. Before purchasing a work of art from an auction, always carefully review this history.
Attend Your First Online Art Auction
Once you’ve registered, researched, and set your budget, it’s time for the fun part! If you’ve never attended an online art auction before, we encourage you to start by observing how the process works. Watching a few auctions can help you get familiar with the pacing, bidding increments, and the overall experience. Even if you don’t bid on an item, attending an online auction is a fun way to discover new artwork, learn about artists and their creative process, and explore the type of art that speaks to you the most. Register for an upcoming online auction today and take the first step towards growing your own personal art collection!
