What are the advantages of online auctions? Two reasons why they are difficult to replace

In recent years, it has become common to purchase used watches online, but it is surprisingly unknown that international auction houses also hold internet auctions. In this article, Sharon Chan, Director of the Watch Department at the long-established auction house Bonhams Hong Kong, introduces internet auctions, which are highly secure and offer flexible prices.

Online shopping platform

　With the rise of the electronics and information technology industry and increased internet usage, online consumption has become increasingly common. However, during my business trip, I found that many people, not only in Hong Kong but also elsewhere, are still unaware that international auction houses are holding online auctions, and some are even unaware of auction houses. Interestingly, however, during the COVID-19 pandemic, all of them had purchased new or used luxury items online. In addition to shopping platforms such as eBay, Amazon, and even Facebook Marketplace, why not consider using auction houses, which offer a safer and more secure environment?

Advantages of Internet auctions conducted by auction houses

　Buying pre-owned watches is an essential part of collecting watches. When it comes to trading pre-owned watches, shopping platforms such as eBay, Amazon and Carousell are undoubtedly some of the most familiar options, but what are the advantages of online auctions run by traditional auction houses?

Platform reliability

　First, typical shopping platforms generally lack a system for screening both sellers and buyers, and only provide sellers with a space to publicly display their products. This means that even if a buyer bids and pays, they may have no way to file a complaint if the product never arrives or if a counterfeit product is delivered, and may have no choice but to accept the situation. However, international auction houses have a certain reputation and scale, and are expanding their businesses around the world. Because their business activities are open and highly transparent, even if a problem arises, a solution can be found, as the Chinese proverb goes: "The monk may run away, but the temple cannot" (even if the criminal escapes, the physical evidence remains, so he will eventually be caught).

　Before accepting the item, the auctioneer checks the background and financial status of both the seller and the buyer. Furthermore, each item is verified by an expert gatekeeper to verify its origin and authenticity. This system increases customers' confidence in the transaction.

Possibility of getting a bargain

　While some watch enthusiasts may consider watch-focused shopping platforms equally trustworthy, the seller retains the final say on the item's price. Auctioneers, on the other hand, handle bidding online, so prices are influenced by market demand and popularity. This means the chances of finding a bargain are higher. For example, in an online auction held by Bonhams Hong Kong in April 2023, a Grand Seiko Spring Drive-equipped "Elegance Collection SBGY007" watch, "Omiwatari," sold for HK$40,800 (approximately JPY 783,768, 1 HK$ = JPY 19.21, as of October 27, 2023, including buyer's premium). During the same period, major watch-focused shopping platforms offered the SBGY007 for over HK$46,000 (approximately JPY 883,660). This difference is approximately 13% compared to the winning bid at Bonhams Hong Kong.

　Bonhams Hong Kong once again held an online auction on August 1, 2023, with many top brand items being offered with no reserve price. One example was a Patek Philippe Nautilus Moon Phase Ref. 5712G, complete with box, warranty card, and other accessories, with a reserve price of approximately HK$400,000 (approximately JPY 7,684,000) at the time of listing. This model, expected to fetch nearly half its market price, is generally difficult to find on any shopping platform.

Recommendations for Internet Auctions

　Because luxury goods have large transaction values, people have to be cautious about purchasing them online without seeing them in person. Auction houses, on the other hand, have a long history and a reputation as experts in dealing with luxury goods. Furthermore, past auction results and market prices are readily available, making them a much more reliable trading platform. Prices are also more flexible, giving anyone the chance to place a bid and purchase the item they want at the minimum bid price. If you haven't yet experienced the excitement of an online auction hosted by an auction house, why not give it a try now?

Author "Sharon Chan" Profile

　Sharon Chan is Director of Bonhams' Watch Department in Asia. Based in Hong Kong, she works closely with offices across the Asia Pacific region and oversees the department's 10 auctions per year.

　He has over 17 years of experience in the jewelry and watch auction business at various international auction houses, and from 2011 to 2016 he oversaw the watch auction in Hong Kong, where he achieved year-on-year growth in sales, achieving the highest price for a watch sale in Asia in 2013. He also oversaw one of the world's largest private watch collections, setting a new record of US$600 million at auction in 2015.