The 1stdibs.com company is known as the Amazon of the art market. It makes money through dealer commissions (charging 10%). In addition to this, more than 2,000 dealers who use the site also pay a fixed monthly fee. Recently 1stdibs introduced a new rule: when a dealer gets in touch with a buyer through the site, the sale must also be processed through the site. So dealers cannot make a deal privately after they have created a lead. Dealers comply, since the site gives them the ability to find a global clientele.
From offline to online sales: a generational thing
Young consumers (those under 30) buy just about everything online, from clothes to cars. To them, art isn’t much different. Kai Kuklinski, CEO of AXA Art, a large insurer specialising in art, claims: “Those who are buying art online are relatively new to the art market.” These buyers often follow a particular artist and are familiar with their work. The benefit is speed and access, according to Collectrium (a startup that created an online platform allowing collectors to manage their artwork; it was purchased by Christie’s last year).
There are still reasons to stay offline
Although everything stated above is true, there are still some advantages of being a big offline buyer which are especially hard to give up. Technology may be comfortable but one of the perks of being a high-end buyer is being invited to art fairs around the world. And travelling to fancy locations, along with the status connected with such invitations, is not disappearing even with online services disrupting the art market.
-jk-