10 Key Benefits of Online Auctions
1. Audience Size
There is a much larger audience willing to participate in an online auction than there is in a traditional live auction. Bidders change from auction to auction. It is possible that someone wanted to go to an onsite auction but was unable to because of a conflict, maybe it was too far away, or maybe they didn’t see anything that interested them based on the marketing. When you conduct an online auction, your audience is exponentially larger.
2. More diverse buyers
Online auctions reach a completely new type of buyer, including single item buyers, younger buyers, and buyers who work 9-5 jobs and are unable to attend a live auction.
3. More Convenient
Online bidders can bid when they want, from where they want, and on as much as they want. Bidders can be engaged in other activities and at various locations while the auction is being conducted. They can bid from the comfort of there own home, at their office, or while on the go with our mobile app.
4. Increased Exposure
Because every item is cataloged, pictured, and has an in-depth description, bidders can search or find specific items that are relevant to their interests. Google, Facebook, Yahoo and other search engines are just a couple tools that we use to spend advertising dollars as efficiently as possible to make sure the items are being shown to the correct audience. The window of opportunity granted to bidders is open larger and stays open for a longer period of time than live auctions.
5. Increased Decision-Making Period
While this differs from the traditional auction method (i.e. getting bidders excited in the heat of the moment) this allows buyers to make more informed decisions. Online auctions give bidders the best opportunity to conduct their due diligence and research items. Being able to call the seller, auctioneer, or other expert and ask questions about items ensures that the bidders can buy with confidence. The more time bidders are given to make informed, rational decisions, the more successful your auction will be. Representing items as accurately as possible is crucial for this to happen. Misrepresenting items can be detrimental to the success of your auction and the satisfaction of your buyers.
6. Seamless transition from marketing to bidding
Bidders are able to instantly switch from looking at a piece of advertising to bidding in just a few seconds instead of adding the auction date to the calendar, only to be forgotten about or have a conflict arise. Bidders are far more likely to engage in your auction when they can instantly follow up on advertising and bid rather than have to wait for a specific place and time.
7. Items do not Need to be Moved or Consolidated
Online Auctions can completely eliminate the need and cost to move your items. The items are cataloged, sold, and picked up all from the same location. Eliminating this hassle creates a level of ease for sellers not experienced before. Whether time, difficulty, or cost is the major limiting factor in moving items, we are able to remove those obstacles.
8. Selling at Multiple Locations for Multiple Sellers
With online auctions, we can combine assets form several sellers and sell them all at once. Maybe you are a seller who only has a couple of items, not enough for your own auction. We are able to sell items from other sellers in the same auction. This attracts more buyers, increases advertising effectiveness, is more convenient for bidders; they no longer must attend several small auctions to bid on the items they want. Bidders can view and buy items from various sellers all on the same auction.
9. More Detailed Descriptions
During a live auction, the auctioneer only has a few seconds to outline key features of an item. In an online auction, we can provide further details and the seller is able to verify the accuracy of the description. Removing the margin of error increases trust between buyers and sellers. This increased trust creates a community of buyers and sellers with the auctioneer acting as the intermediary. This community leads to better experiences for all parties involved.
10. Less and More Controlled On-Site Activity
Between set up, open houses, and load out, there is certainly still going to be some on-site activity. Setting the open house and load out schedule can greatly reduce the stress and complications of having a yard full of vehicles and people on your location. Having a set time to retrieve items is also more convenient for buyers as well. They know they will be able to drive to the location, pay, pick up their items and leave. Weather can also be limiting factor for on-site auctions. This is not the case with live auctions. If there is a snowstorm on the day of the online auction, no need to worry. If there is a snowstorm on the scheduled pick-up day, buyers can be contacted, and the date can be easily switched.
Auction Industry FAQ'S
Online / Live Auction Buyer Questions
How do I become a Registered Bidder?
*On our website, www.FragodtAuctions.com you will see at the top of the page a tab that says Login/Register. Click that button. If you have already signed up for our auctions, you simply put in your Username or Email, along with your password and you are able to bid on our auctions. If you have not previously signed up for our auctions you click the Red Button that says “Register.” That button will have you verify your email address, ask you a few questions about your name and address, and for our auctions that we charge Credit Cards at the conclusion, it will ask you your card information. When that information gets entered you are registered and able to bid on our auctions.
What is a Timed Online Only Auction?
*Timed auctions run for a defined period of time, allowing bidders to register and place maximum bids on items with confidence. As the auction progresses, bidders have the opportunity to raise their bid amount.
How does a Timed Online Only Auction Close Down?
*A timed online auction ends at the time specified by the auctioneer, however, extended bidding may occur if additional bids are placed in the last three minutes of the auction. This is to prevent last-minute bidders from sniping the lot, and to give all bidders a fair chance to place their best bids. If you are the highest bidder at the close of a lot, you will receive an email at the auction’s close notifying you of your purchase.
What is a Buyer’s Premium?
*A buyer’s premium is commonly used in auctions today as a form of payment for the auction company conducting the auction. The buyer’s premium is an advertised percentage of the high bid or flat fee added on to the high bid to determine the total contract price to be paid by the buyer.
What does “AS-IS, WHERE IS” mean?
*One of the most common statements made at auction, “as is, where is,” simply means the property is being sold without warranty and that there are no contingencies based on the status of the asset being sold. It is important that you inspect all auction properties before you bid, both real estate and personal property. Photos may not show all the details or potential faults with the asset and it is your job as a well-informed bidder to thoroughly inspect and know what you are bidding on BEFORE the start of the auction. Once you bid and buy an asset at auction, you are the new owner.
Where are the items located?
*Most of the items on our auctions are still at the owner’s place. The approximate location, the owner’s name, and phone numbers are in the item’s description. If you wish to view any items, simply give them a call, and set up a time to go and view the items.
Can I inspect the items I am interested in bidding on before the auction?
*We encourage you to view the property before auction day. Due diligence on the part of the bidder is important with auctions. Contact the auction company and inquire about times when open houses will take place. Auctioneers want you to feel comfortable with the items you are bidding on. Always feel free to call and ask questions.
What happens when I “WIN” an auction item?
*Invoices/Receipts are E-mailed to the E-mail address you registered with approximately 30 minutes after the final auction item has closed. If you think you won something and do not see an invoice, check your junk folder or contact us to get a new one sent out. This e-mail will also contain all of the Payment and Load Out information.
I have won an item and received an Invoice, now what?
*Payment Options: Pay Online with a Check or Credit Card, Check or Credit Card by Phone, Cash, Check, Credit Card, Wire Transfer *A 3% Surcharge will be added to all Credit Card Invoices. *Contact our office for wire instructions. Payment can be sent by check, as soon as we get the check we will e-mail you out a Paid Receipt, you can then contact the owner (his name and number are on your receipt) and go and pick up your item. You can also make payment at our office in Milan or over the phone with a credit card. **No items will be released until full payment has cleared our office.
What is the difference between an “absolute” auction and a “reserve” auction?
*An “absolute” auction or an auction without reserve means that the item is sold to the highest bidder, regardless of price. A “reserve” auction gives the seller the right to set a minimum price they are willing to accept for an item. In this type of auction, the seller is only obligated to sell the item if the bid amount meets or exceeds his or her reserve price. Unless advertised as “absolute,” auctions are considered to be “reserve” auctions.
I forgot my password. What are my next steps?
*On our website, www.FragodtAuctions.com you will see at the top of the page a tab that says Login/Register. Click that button. Under the Password box in Blue letters is a link that says “Forgot Password?” There you will enter the E-mail address you’ve previously registered with and it will e-mail you a link to reset your password.
Online / Live Auction Seller Questions:
I’m thinking about having an auction, what are my first steps?
*The first thing we always like to do is come and look at the items you wish to sell. From there we can make a plan that will best fit your particular situation.
When is the best time to have an auction?
*Whenever you are ready. With the world being so connected, any time is a good time. There are always buyers in the market.
I’ve sold an item at your auction, now what?
*The buyer will now make payment to Fragodt Auction Co. When we receive payment we give them a receipt that says Paid in Full on the top. They will then contact you to set up a time to come and get their item. Fragodt Auction Co mails out checks to our sellers approximately 7-10 days after the auction.