Wine dealers try online auctions to tap new clients

Bidding for wines at auction has been a hobby for auditor Robert Mirfin for almost two years. Sometimes he visits the auction house floor but prefers the flexibility of bidding online.

"The principal benefit is you don't have to be physically in an auction room. You can bid from anywhere in the world," Mirfin said.

While firms like eBay helped pioneer online auctions almost two decades ago, public bidding on higher value items such as wine and art is still the domain of live auctions and their gavel-waving auctioneers. That is now starting to change as firms begin moving auctions online to cater to changes in buying behaviour and a more global clientele.

Wine merchant Zachys began experimenting with online-only auctions last year, generating US$1.5 million in Hong Kong sales. The firm's live auctions brought in US$20 million. This year, Hong Kong managing director David Wainwright expects online events to constitute 15 per cent of turnover.

"On the business side, online auctions are far more profitable, much easier to manage. The amount of hassle in a live auction is very high. For the consumer, you have 24-hour access anywhere in the world. You don't need to be there, you can just log in anytime," said Wainwright.

Another major advantage is that payment is collected immediately upon sale by pre-authorised credit cards, eliminating the risk of the winning bidder reneging on the deal.