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Wall Street Journal reports that Amazon is discussing plans with about 100 art galleries in the US of selling fine art online. The e-tail giant plans to create another part in its site where it will offer unique paintings, prints, and other fine art pieces. Amazon has already organized cocktail receptions in Seattle, and other big art cities including New York and San Francisco, inviting galleries to join the plan.
According to WSJ, Amazon will charge the art galleries a monthly membership fee of $100 and will get a commission of 5-20%, depending on the sold artwork. Higher-prices pieces would be subject to lower commission rates. The membership fee would be waived for art houses which would partner with Amazon in selling high-end art until 2015. Amazon will be using a retail model, which means each artwork has a fixed price, unlike art auction houses where the highest bidder gets the art.
Online selling of fine art is a double-edged sword. Amazon’s plan is a great way for art galleries to reach more people. Art lovers outside the city such as New York would be able to buy great art without traveling to the city. At the comfort of their homes or offices, people can easily buy art, even without visiting the actual art gallery. However, a drawback of this plan is that people may be hesitant to buying expensive paintings without seeing the actual painting. Most likely, art buyers won’t pay six- or even seven-figures for something that they only see online. Unlike buying a book or a gadget online, serious art collectors would naturally want to see the artworks personally.
High-end online auctioneers such as Sotheby’s and Christie’s said there is a growing market for expensive art over the Internet. Sotheby’s BidNow program was able to sell a 16th century portrait of Giovanni Gaddi for $2 million in 2012. Christie’s have been accepting online bids since 2007. It revealed that 27% of its auction sales ($6.2 billion) last year came from online bidding and regular auctions. Christie’s was able to sell Edward Hopper’s oil on canvas painting entitled “October on the Cape” to an online bidder for $9.6 million.
As of now we’re not sure if Amazon’s plan to sell high-end art will come to fruition. In 1999, Amazon forged a partnership with Sotheby’s to sell fine art but it lasted for 16 months only because the jointly operated auction site, Sothebys.Amazon.com, failed to gain traction. Also, there are many online art galleries offering a wide range of art from numerous artists that already have established markets and loyal clientele.
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