Adapted from Analysis: Vinfolio Marketplace vs. Auction House fees originally posted in The Wine Collector blog.
The Vinfolio Marketplace differentiates itself on many dimensions, including fees. Vinfolio has created a fee-only-based comparison which clearly shows the advantage of selling through the Vinfolio Marketplace.
Comparing “apples to apples”
It's important to do an “apples-to-apples” comparison in order to understand the Marketplace's competitive advantage over other auction houses.
First, all auction houses require the wine being auctioned to be in their custody prior to the auction. While not required in the Vinfolio Marketplace, the seller has the option of transferring wine to Vinfolio storage first, which is the nearest equivalent of the traditional auction house approach.
Normalizing fee methodologies
Most auction houses (whether traditional or online) charge both a buyer's premium and a seller's commission on a transaction.
When normalizing fees, one must look at the cost to the seller as well as the buyer's premium, because rational buyers faced with paying a 20% buyer's premium on a bid (or “hammer”) price, will lower their bid to reflect the extra cost. Doing so ensures the total out-of-pocket price reflects what the buyer believes the bottle to be worth.
| Leading Auction House Buyer's Premiums* | |
| Auction House | Buyer's Premium |
| Acker, Merall | 22.0% |
| Bonhams | 19.0% |
| Christie's | 20.0% |
| Hart Davis Hart | 19.5% |
| Sotheby's | 21.0% |
| Zachy's | 21.0% |
* Buyer's premiums based on January 2010 U.S. auctions (note: if an insurance fee percentage is required, it is included).
Fee methodologies have been normalized using a fixed $100 total price paid for a bottle, calculating the bottom-line net proceeds received by a seller when sold through different types of auction channels. The table below presents a comparable single metric representing an “equivalent” seller's commission.
Vinfolio Marketplace vs. Traditional Auction Houses
Vinfolio Marketplace generates greater seller proceeds than a typical auction house.
Auction houses don't publish their seller's commission fees. They tend to be negotiated based on the estimated value of the consignment. The range shown below is fairly typical.
Vinfolio Marketplace vs. WineBid and J.J. Buckley (WineCommune)
The Vinfolio Marketplace also offers lower fees than selling through WineBid or J.J. Buckley (a WineCommune affiliate). Some additional explanation is needed here:
- Winebid's seller commissions are not published, but are believed to vary between 12%-19% based on the volume of wine consigned.
- J.J. Buckley, a retailer owned by WineCommune, uses WineCommune to run consignment auctions (WineCommune sellers as of 12/08 must possess alcohol licenses to use it directly, hence the J.J. Buckley “tag team”). There is no buyer's premium and the seller's commission is linked to the bottle value with break points at $250 and $1,000. A July 22, 2009 review of WineCommune's site, showed only 3 listings with prices of over $1,000 per bottle (13% fee) and just under 10% of listings with $250 in total value (15% fee; listing measurement includes multiple bottle lots) so most people sell bottles for less than $250 which is a 17% seller's commission. The 16.8% shown in the chart is an estimated weighted average.
Other material differences exist: At WineBid and J.J. Buckley, any wine which doesn't sell in a weekly auction has its reserve and/or starting bid lowered each week until it sells (or you can ship it back to yourself any time at your expense). The seller's commission can be reduced to 10% at J.J. Buckley if you sign up for a weekly auction with a $1 starting bid and no reserve. As that's an “orange” in this “apples-to-apples” comparison, it is not included it in the chart above.
Selling fee summary
The far right column in the table below represents the “expected” fee borne by the seller based on which firm is used.
| Auction Firm | Buyer's Premium | Seller's Commission** | Total Fee % Borne by Seller |
| Vinfolio Marketplace | 0.0% | 15.0% | 15.0% |
| JJ Buckley | 0.0% | 16.8% | 16.8% |
| Acker, Merall | 22.0% | 0.0% | 17.4% |
| Bonhams | 19.0% | 4.0% | 19.3% |
| Hart Davis Hart | 19.5% | 4.0% | 19.7% |
| Christie's | 20.0% | 4.0% | 20.0% |
| Zachy's | 21.0% | 4.0% | 20.0% |
| Sotheby's | 21.0% | 4.0% | 20.7% |
| WineBid | 15.0% | 15.5% | 26.5% |
| ** Expected or average of est. range | |||
Bottom line: The Vinfolio Marketplace is the most cost-effective solution for selling your wine, even without considering its many other differentiators. Review the Marketplace overview to learn more.
