by Frank EdwardsIt has been some time since The Modern last visited the topic of on-line auctions. After an extremely short infancy, on-line auctions have grown up to be massive in size, and are poised to forever change the process of buying and selling antiques and collectibles. Eleven-month-old eBay, which has a larger market value ($12.5 billion) than all the public and private auction houses in the United States combined, has bought the respected Butterfield and Butterfield auction house. Old-timer (2 year old) amazon.com has moved beyond books, movies and music to purchase part of Sotheby’s and plans a joint web presence under the name sothebys.amazon.com. Christie’s is rumored to be talking to potential internet partners including Go.Com.
Did you fall asleep "Rip Van Winkle" style? No, this is life on the internet, making dog years creep by like glaciers. If you are a collector, get on line now. If you are a dealer of antiques or collectibles, get used to the new rules: your customers are getting more knowledgeable by the moment about prices, quality, scarcity and collectibility. The year 2000 will be a critical turning point for those in the business. You can fight the future or take advantage of a global market for your merchandise, but you cannot escape the new reality.
Ebay alone currently has 2.4 million items up for auction. Daily 1.1 million unique visitors check out 1.5 billion items per month. Encouraged by the 14 million people who watch the Antiques Roadshow on PBS each week, ordinary people are starting to understand that the items they never really identified or liked may be worth big money to someone else.
So how do you avoid becoming antique road kill on the on-line Roadshow? It depends on whether you are looking to buy or sell. This issue will focus on buying on line.
Buying
Buying on line is more risky than selling, and you should definitely do your homework first. What kind of items are you interested in buying? Can they be shipped without unacceptable damage occurring? Buying a large bedroom set on line from a seller in Oregon is not likely to be a bargain, no matter what your winning bid is. How much money are you willing to send via money order to someone you will never meet? Until sothebys.amazon.com goes live later this year with certifications from member dealers, you will be making a substantial leap of faith when you purchase big-ticket items on line. For now, the best items on which to concentrate are those under $250 which are easily packaged and sent via UPS or Priority Mail.
Before you dive head first with your bid, make sure you become educated to the subculture surrounding your chosen collectible. Because of their head start and massive database and selection, I recommend eBay as your first stop. Go to www.ebay.com and search for items that interest you, being as specific as possible. Be sure to identify the items which meet your criteria. If none do, make your search less specific. Inspect all the items that interest you, noting the current high bid and the time remaining in the auction. Bookmark (favorite) auctions which have exactly what you are looking to collect so you can return to them easily. Don’t bid right away. Do a search of completed auctions for your selected keywords. This is your best tool to understand the ground rules for your collectible. Scan the list and note the final high-bid prices. Then, on the items on which you might have bid, click on bid history. This will inform you whether lurkers wait until 15 seconds left in the auction and place high maximum bids to guarantee their win and leave other bidders no chance. If you discover this pattern, you should realize that you are unlikely to find super bargains for these items and you will be faced with the disappointment of following the auction of an item you truly want for a week or more, only to be outbid in the closing seconds.
If the bidding seems reasonable, take another look at the current auctions for your selection. If you are ready to try, register for free, choosing your identity and password. Find the best auction item you can find and place your bid. You will almost immediately learn how hot this item is. If the previous high bidder is willing to bid higher, his or her maximum bid will take precedence over your bid. You will see the new high bid and have to decide if you are willing to bid higher. If you are, it is a good idea to set your own maximum bid, always remembering that shipping costs (and possibly handling and sales taxes) are usually not included. If not, move on.
At some point you need to decide what type of bidder you will be. Will you set a limit, make your maximum bid right away, and not be upset if you lose an auction at a price higher than your maximum? Or will you sit on the edge of your seat, responding to each outbid notice with a frantic decision to bump the bid up by the minimum advance? I firmly believe that you should spend time researching what are reasonable on-line prices for your items and get to know both the regular sellers and the regular bidders. Learn the sellers reserve, payment and shipping policies and the bidding practices of competitive buyers. Also click on their feedback ratings and histories. Never place a bid on an item listed by a seller with an unreasonable level of negative feedback.
Once you firmly understand the on-line auction world, feel free to shop to your heart’s content. Just remember that part of the reason you are likely getting a bargain is because there is significantly more risk to this transaction than going to a local antique store. Anyone who has participated in more than 10 or 20 auctions will have a horror story or two to tell. Limit your exposure and chalk up your losses (if any) to experience. Like fishing, the one that got away tends to make for better storytelling than the best one you landed.
Next Issue: Selling on line