Savannahnow asks about the state of online auctions:
Credit: AP Photo/Wilfredo Lee
Online sites selling art are facing a similar situation to auction houses: Sales are down. These sites vary in the quality of art they sell. Some of them are standalone and some are operated by galleries as an additional way to reach buyers. Some owners say they are losing money, while others said their businesses haven’t grown as much as they had hoped since the economic downturn. They are all looking at alternative ways to keep their businesses going in this declining market.
Newyorkartexchange.com is run by Brian Skiba and Catherine McCormack-Skiba:
Palo Alto, Calif.-based McCormack-Skiba said people are buying the cheaper art on the site. No one is buying the more expensive works on the site that run from $5,000 to $10,000. […] Bill Fine faced a similar situation as McCormack-Skiba. He said that last year he launched the auction section of his online site, artnet.com. Works are put up for auction and the site gets a 10 percent commission from the buyer and the same amount from the seller. He said he is doing an average of $400,000 to $500,000 in sales per month, but is losing money monthly. But he has faith in his venture.
