A Beginners' Guide To Online Auction in London

by Anna Eliza Business Advisor

An auction is a fun event and a constant learning opportunity for auction enthusiasts. They love the atmosphere in an auction room. If the scene inside an auction room excites you as well, then you might want to step into the game. But how? The scenario can be a bit tricky for the novice.

If you are completely unaware of an auction and have no idea what goes on there, let’s help you to understand it:

Auctioneers pick items, describe them and potential buyers bid on them. The higher bidders can go, the higher the prices go. In the simplest terms, it’s the competition, the rush to be the highest bidder, the adrenaline rush of being the one who buys the most products, and the craze of acquiring antic items.

However, ever since the pandemic outbreak, offline auctions have become impractical and the arrangement also does not adhere to health and safety regulations. But this does not stop auction enthusiasts from buying items by winning a bidding competition. Wondering how? By shifting the entire arrangement online.

The World of Online Auction

Online activities have become higher than ever. From the popularity of online shopping sites to increased demand for online auction sessions, the massive shift has simplified the auctioning industry.

If you are ready to taste the water, online auctions are the safest solution. From enjoying higher profits to the freedom of accessing a wide range of products, beginners need to experience the excellence of this arrangement.

What should beginners do?

Start with Learning the Business Procedure

Before listing your items for sale or buying new possessions, get acquainted with the industry. Understanding the auction jargon protects you from feeling left out or confused during the bidding. Here is a list of auction terminologies for you:

Auctioneers

The people who arrange the auction, accept bids from possible contestants and close the auction once they receive the highest bids. Auctioneers receive a percentage as commission. Whether they get a fixed amount or a percentage of the entire sales amount.

Hammer Price

The final bid. Once a product does not get higher bids than the last one, auctioneers drop the hammer to declare its final price.

Valuation

If a seller has no idea about the real value of an item, valuers assess the current value of the product to protect both the sellers and buyers from being duped.

Lot

Auctioneers sell a batch of items at a time. The entire single unit is known as a lot.

Carry Out a Research Process

Offline auctions allow bidders and buyers to check the items available for bidding. However online auctions let potential customers go through the listed items days before the actual auction. Therefore potential bidders or buyers have the freedom to check the details of the listed items and their pictures. Online auctions allow the auctioneers to add larger and hard-to-find materials as well.

There are many online auctions specifically arranged to bid on a certain type of material. If you want to buy a vehicle in an auction, get it from a vehicle auction. For electronics, buy from an electronic equipment auction.

Invest time in the research to only bid in an authentic online auction or to buy only the best items.

The research is also crucial for the sellers. It’s essential for first-time sellers. At times, sellers undervalue their products and end up losing the items at a minimal cost.

Be vigilant with the products you want to give up in an auction. Get them valued by valuers to protect yourself from being deceived.

Get to Know the Deadlines, Bidding Cost, and Shipping Details

As an online auction offers bidders the liberty of choosing items from all over the world, buyers need to invest hours to find out the shipping information. Only buying or bidding costs you money. You need to bear the shipping and other related costs as well. Potential bidders also need to complete the bidding on time. Neglecting the date eliminates your bidding choices.

Select an Authentic Auctioning House

There are numerous online auctioneers who regularly arrange liquidation sales. Since COVID-19, the number of online auction houses has also surged. Therefore choosing the most suitable auction house is vital to keep your items safe. Only list your products on reliable auction sites to get them sold at the right price.

You must also look into their number of bidders or buyers. The more potential buyers an auction site gets, the higher price you can expect. You also need to look into whether the auction site sells the product you want to get rid of. For your catering tools, look for a catering equipment auction where you have a higher chance to get the real value of the listed materials.

Focus on the Product Details and the Pictures

If possible buyers don’t have the privilege to physically look into the listed items, they pay close attention to the listed details and pictures. As a seller, it’s your responsibility to put clear photos online and list authentic details.

Online buying highly depends on product presentation. Online auctions are no different. Work with high-quality images to be transparent about the product condition and the information that might influence the buyer's decision.

Decide the Pricing

Sellers need to be aware of the product's pricing to protect themselves from possible swindling. If you are not aware of a product cost, take the help of valuers. They are professionals in finding out product value.

Once the valuation is over, fix the minimum price of a product with a 30% hike on the real value. Anything less than this does not offer the seller the desired profit.

Fix Terms of Sale

The transaction information can consist of warranty, order cancellation, refunds, or payment terms. You can include whatever seems important to you.

Afer-Sales Assistance

As a seller, it’s your responsibility to assist the buyer with technical assistance or information he/she wants.

As a buyer, you must collect the seller’s contact details for further assistance in the future. It stops you from taking paid assistance from another professional even for the simplest problems that the previous owner or the seller might be aware of.

Steer Clear from Reckless Bidding

Repossession sales are adrenaline boosters that can turn even the most thoughtful mind into an impulsive human being. Therefore controlling yourself from the urge to recklessly bid in liquidation auctions takes practice and control. Decide what you need and be clear with how much you can afford. It’s better to not go bankrupt to calm the momentary impulses.

Final Thoughts

An online auction in London is more fool-proof than an offline auction. Don’t let the online transaction and online medium hinder you from enjoying its benefits. The world is not limited to physical premises anymore. It has overcome the barrier of geographical locations and can reach universal sellers and buyers. Follow the complete guide to protect yourself from getting fooled in liquidation sales. Stick to the dates and deadlines to not get left behind. Deal with reputed auctioneers for the safety of your products (sellers) and the safety of yourself (buyers). Scrutinize the auction house by reviews and rating before bidding or listing your products for liquidation auctions.