How do online asset auctions work?

What are online asset auctions?

Online asset auctions are digital sales that allow buyers from the UK and further afield to bid on commercial assets they like the look of, often at a great price. The assets available can include:

• Plant and machinery

• Retail stock and inventory

• Industrial assets and equipment

• Construction vehicles

• Woodworking tools

• Office and IT equipment

There’s no end to the items you can buy. For example, our live asset auctions currently include two Rolex watches, printing equipment, an indoor football centre, metal fabrication equipment, and the contents of a high-end custom car garage. 

Whether you want an asset to add to a current business or are interested in buying a fully formed business, with so many assets available, there’s something for everyone.

What is the online asset auction process?

That depends on whether you’re a buyer or seller.

For sellers 

If you’re looking to sell an asset you no longer need or want to retire and are liquidating your business, asset auctions give you a fast and effective way to turn unwanted assets into cash. Here’s how it works: 

• Choose an auction: You find the right type of auction to suit the asset you have to sell and contact the auctioneer.

• Value the asset: The auctioneer will value the asset on your behalf.

• Market the asset: The auctioneer will produce high-quality images and detailed descriptions of the asset and market it to its database of buyers and more widely. 

• The auction takes place: The auction takes place online and prospective buyers bid on the asset.

• Completing the sale: The highest bidder purchases the asset and the seller receives the proceeds, minus the auctioneer’s fees.

For buyers

As a prospective buyer, the process often starts with searches for specific items online or browsing specialist auction sites like Eddisons Asset Auctions. When you find something you like, you can take the following steps:

• View the lot online: You can view images and detailed information about a lot online without registering.

• View the lot in person: If you want to see the lot in person, you can usually arrange a physical viewing by contacting the auction house. Viewings are often at predetermined times, and you’ll need to make an appointment to attend.

• Register as a buyer: If you want to bid on an item, you must register as a buyer.

• Place a bid: Once the auction begins, you can bid online. Bid carefully, though, as a bid is considered a binding offer, and you cannot withdraw a bid once you’ve made it.

• Winning the bid: If you make the highest bid, you must purchase the asset at that price.

• Payment: Full payment is usually required within 24 hours of the sale closing, and you must pay in full before you can collect the asset. 

• Collection: Buyers usually collect the asset within a day or two of the auction ending. 

What happens during an online asset auction?

Unlike traditional auctions, which take place at a predetermined time and place, online auctions can last anything from 48 hours to 30 days, with bidding taking place 24/7. Buyers can see the current bid, the bid increments and the details of any reserve price and whether it has been met. 

There tends to be less activity at the start of the auction, with a flurry of bids towards the end. At Eddisons Asset Auctions, any bid received during the final 10 minutes of the sale will lead to a bidding extension of 10 minutes to give other interested parties the chance to bid. You should refresh your screen regularly so you are aware of any new bids. 

You can find more information about our process by reading our online asset auction FAQs. 

Payment in online auctions

There is no cooling-off period in an online auction. If you are the winning bidder, you are legally obliged to pay in full within a predetermined timeframe, usually just 24 or 48 hours. Any bid is subject to approval and acceptance from the seller. You will usually have to pay via debit card or bank transfer. Payment by cash, credit card or cheque is typically not accepted. 

If you are the highest bidder but do not make the payment, you will usually lose any deposit or reservation fee you have paid. You could face legal action from the seller or the auction house to enforce the contract. Alternatively, you may be liable for the difference between the auction price and the price the item eventually sells at, and you may be charged interest on the unpaid amount until the item sells. 

What are the online auction fees?

Along with the winning bid plus VAT, the buyer must also pay a buyer’s premium, which is usually a percentage of the hammer price. 

As a seller, you will typically pay an online auction fee that’s a small percentage of the final sale price plus VAT. You’ll only pay this fee if the asset sells. You may also have to pay a marketing and advertising fee or an upfront fee to cover the cost of listing the asset. These fees may apply even if the asset doesn’t sell, so read the terms and conditions carefully.  

What are the advantages and disadvantages of online asset auctions?

Pros

• They attract bidders from a wide geographic area and increase the pool of potential buyers

• Sellers can sell their assets quickly and easily

• Buyers can acquire secondhand assets at a fraction of the price than if they were new

• Competitive bidding can drive up prices for sellers

• Buyers can participate with minimal travel

• The bidding process is fair and transparent

Cons

• You cannot be sure of the final sale price

• It can be expensive to market and advertise assets 

• Buyers may not always have the opportunity to inspect the assets in person, although most auctioneers recommend it

A leading range of UK asset auction services

If you have any questions about how online asset auctions work or would like to discuss the auction process, please do not hesitate to contact our team. 

At Eddisons Asset Auctions, we guide buyers and sellers from pre- to post-sale for a seamless transaction. That includes physical viewings and detailed lot information for buyers, and asset valuations and sales services for sellers. Get in touch for a free asset appraisal or browse our assets for sale and register as a buyer.