How the internet has changed the auction industry

The COVID-19 Pandemic transformed our world in more ways than one. As people worldwide remained indoors, many businesses were forced to pivot, adopting digital technologies to ensure their operations continued. As a result, the pandemic accelerated the adoption of 4th Industrial Revolution technologies such as cloud-based logistics, Artificial Intelligence, online marketing and more. Even before COVID-19, the digital transformation of various industries has been a long time coming, with certain industries acknowledging the importance of digital transformation in various aspects of business operations. 

The auction industry has been at the forefront of embracing digital transformation, allowing auction houses to reach larger and more diverse audiences as traditional geographical boundaries are no longer an obstacle.

The rise of online auctions

Online auctions have been around for years, but it was the COVID-19 Pandemic that truly popularised this type of auction. Potential buyers were forced to try online auctions as Lockdown Restrictions prevented in-person gatherings. As a result, auction houses have needed to invest in secure, industry-tailored digital platforms. While in-person or live auctions will always have a place, virtual auctions have allowed auction houses to reach larger audiences which include buyers from around the globe. 

High-definition cameras have also made life easier for auctioneers and potential buyers. While nothing beats viewing desired items with the naked eye, these cameras are a great way to provide clear, life-like images that allow bidders to make informed decisions. As such, having digital capabilities such as this can help improve the overall experience of potential buyers.

An easy way to find information   

The digitalisation of the industry has taken this a step further, providing potential buyers with all the information they want, no matter where they are in the world. Buyers and auctioneers are able to access more information about items than ever before, done with a simple click of a button. Whether buyers are bidding on a vintage car or agricultural equipment, they are able to conduct valuable research, allowing them to better understand what they are bidding on. This provides auctioneers with higher sell-through rates. 

More transformation on the horizon 

The digital revolution is in full swing, but online auctions are only the tip of the iceberg when it comes to the auction industry’s dive into the future. With 92% of internet users accessing the internet via mobile devices, auction houses are capitalising on this. Sotheby's has provided a great example of this shift to mobile technology with a mobile app that allows potential buyers to view artwork, make absentee offers, view results of live auctions and browse upcoming auctions. 

Additionally, Artificial Intelligence has also transformed various aspects of how the auction industry operates. This form of technology has provided incredible breakthroughs in predictive analytics, providing a foundation for empowered decision-making when it comes to converting and attracting potential buyers. This has also filtered into the world of augmented reality software, allowing buyers to view auction items as if they were actually in the room. 

Art auctions have long been plagued with the obstacle of forgeries, while buyers looking to purchase a used car at auction have to contend with issues regarding hidden faults. The adoption of AI technology has enabled the industry to overcome these challenges through algorithms that analyse brushstrokes and apps that allow the vehicle’s exterior to be analysed in order to provide a damage assessment in minutes. 

As the auction industry continues to embrace these technologies, it is reshaping the future of the industry, providing auction houses with the opportunity to deliver excellent services and develop streamlined operations as the world continues to evolve in a digital era.  

Step into the future with us 

As auctioneers and potential buyers look for new ways to streamline the process of listing and browsing auctions, Auction Calendar is uniquely positioned to provide this service. As your trusted partner in all things auctions, we endeavour to ease the industry’s challenges by closing the gap through technology. Take advantage of our free-to-use app to ensure you never miss an auction again or conveniently browse our range of auction categories across Southern Africa.