Wise to Art

With the imminent closing of eBay Live, the Internet art auction scene becomes yet a bit more transparent. Memorable for having tried to bring live auction excitement to the Internet, eBay, retracting to its core business, immediately becomes less ambivalent and much more appreciable as to the quality to expect and the risks to be taken.

Ebay Live fed confusion because it had no policy on quality. On the one hand it was a supplementary sales channel for traditional auction houses having goods consigned in brick-and-mortar sales rooms (among those some very respectable ones); and as such it was an altogether interesting alternative to the telephone bidding facility; on the other hand eBay Live featured auctions by auctioneers who were not only but engaged in virtual trading but who moreover didn’t have any of the goods auctioned in consignment or under control, but who simply let unscreened paying members propose their ware through their channel at their own responsibility. There were examples where just anyone worldwide paying their fee could act as a seller. Evidently this didn’t create the climate necessary for serene transactions.

Ebay Live also had an exasperating interface that couldn’t bring up any real auction life excitement (see previous post). However, at this moment, with the notable exception of Christie’s Live, no other actor on the market seems capable of bringing an alternative or improved live-auction platform forward. There’s lots of talk but very little substance emerging.

As for traditional sales room support it seems that Artfact Live is taking up the challenge of providing a supplementary Internet sales channel to reputable auction houses. And for pure Internet auctions with fixed end time, Artnet Online Auctions recently launched their platform. As for eBay, by pulling out of the live activity and by introducing more severe rules, there is evident improvement in regard to their core activity.

The general trend is set for more security. We may be confident that Internet will find ways to affirm and develop its ever growing market presence.

The American Art Dealers Association publishes an online beginner’s guide to art collecting where their vision of the on-line marketplace is set out. Not surprisingly and for obvious reasons they are in general against buying art on the Internet.

It is true that this new medium threatens the classical (and often costly) intermediaries, who are not always as professional or useful as they make us believe. Nonetheless, the brochure, albeit already a bit dated, is interesting. But as with everything in regard to Internet we need to accustom to virtual reality and not try to bend the world to our own will. You either accept the evolution or you are surpassed. It is clear that in the niche of Affordable Art, direct trading on the Internet between knowledgeable actors is already gaining market share and prices up to 5000 USD are readily paid. The on-line experience just asks for normal due diligence. If you are careless you will be ripped off whatever the channel.

Here are some excerpts from the AADA’s online brochure:

The Internet is a remarkably user-friendly way to navigate the art world. The World Wide Web can be used to do background research on an artist or type of art that interests you, to locate dealers specializing in that work, to scout available inventory and to check prices. The Web offers access to art and galleries all over the world. Email makes it easy to initiate a relationship with a gallery that you might not readily be able to visit.

However, no one polices the Web for accuracy, and the Internet must be approached with intelligence and a degree of caution. Art-historical information is only as good as the source from which it comes. Internet sellers may post images of works they do not actually have access to, or that are incorrectly described or not authentic. Prices need to be understood within the larger context of the art market.

While the Internet can be helpful in researching an acquisition, the actual process of buying art should not differ substantially from any other kind of art purchase. Unlike books or appliances, most art works are unique, and unless you are buying a low-cost multiple, you will not want to simply pop the item into your online “shopping cart” and proceed to “checkout.” After you have located a work or artist that interests you, call or email the dealer. Ask questions about provenance. Does the dealer perhaps have other works by the same artist that might interest you more? Get a description of the condition and a good photograph, and be sure that the dealer is reliable and reputable.

So far, attempts to sell higher-priced unique art through online auctions have not proved very successful. The risks attendant to buying on unvetted websites such as eBay are simply too great. EBay and similar sites essentially act as neutral conduits between buyers and sellers, who are solely responsible for delivering on their promises. Services such as Paypal, which withhold payment from the seller until the item has been satisfactorily received by the buyer, cannot wholly guard against disappointment or fraud.

Recently, some of the larger art auction houses have initiated online bidding services, which enable bidders to participate in real-time auctions from their laptops. Essentially, the process is no different from bidding on the phone, as the actual sale is still conducted in the auction house’s salesroom.

Since Internet sellers are liable for the authenticity of the works sold and for conveying good title, buyers must ultimately rely on the honesty and knowledge of the individual seller.

The major online art platform Artnet has recently launched a French language version of its already well established German-English referential conglomerate and strengthens thereby considerably an already leading position on the international art market. Even though France was retrograded to fourth position recently for world art market turnover, it still holds immense influence and no serious global actor could afford to neglect this important audience. If the French-speaking art world benefits from this move, it will probably be France’s own champion of the Internet, Artprice, that will take the blow. In any case, competition is always healthy and there is room enough for a plurality of players who anyway champion quite different approaches.

The present dynamism of artnet is further shown in their interesting cooperation with Art Basel – Miami Beach.

As for artnet’s online auctions, that seem to have great difficulty to take off, we’ll be back with an in-depth analysis.