ART, like practically everything else these days, can be purchased online. As the number of reputable online art auction companies rises, industry insiders say the lower end of the market is opening up to more people with artists benefitting from the increased exposure.

While Pablo Picasso or Zhang Daqian paintings that fetch millions of US dollars are unlikely to be auctioned online anytime soon, Internet auctions work well for pieces by emerging artists.

Wu Yangbo, a professor in the art management department at Guangzhou Academy of Fine Arts, compares art e-commerce to a pyramid.

“The top is the artwork at the museum level. These pieces are closely linked with art history and they don’t reach the market too often. The famous auction houses and some big galleries are the main providers in the middle of the market. At the bottom of the pyramid, prices are more affordable and this is where online art auction companies are operating.”

A recent report by the China Association of Auctioneers says domestic online auctions generated 20 billion yuan (US$3.25 billion) last year. Taobao, China’s biggest e-commerce platform, says online auctions reached 12.1 billion yuan in sales in this year’s first quarter.

While neither provides a figure for art sales, there’s little doubt the potential is strong. There are now about 1,000 e-commerce companies dealing in art across the country.

“Compared with traditional auctions, online auctions have some advantages,” Wu said. “For starters, money is saved since catalogues don’t need to be printed as photographs can be uploaded to a webpage for potential bidders. Online auctions are also not limited by time and space and have a much larger reach.”

According to Zhu Wenyi, an Artrade.com employee, which was established by Guardian Auction House in 2000, the website attracts an average of 400,000 daily visits with one million registered users.

“This is a daunting figure,” Zhu said. “Galleries and auction houses will never be able to match such numbers. Online auctions have certainly made it easier for first-time buyers to become involved and discover what kind of art they like. This will change the market as previously only a small group of people were involved in art auctions.”

Zhao Yong Online Auction, established by Hosane Auction Group in 2000, initially focused on stamps and coins but later added contemporary Chinese art, ancient books and historical materials to its stable of auctions.

The company’s online auctions posted sales of 600 million yuan (US$97.2 million) in 2012, exceeding the total of 400 million yuan from both of Hosane’s regular spring and autumn auctions for the first time.

Stamp collector Lin Seng is among those who were skeptical of making purchases online at first, but now feels at ease with the growing trend.

“I used to buy at auctions that had previews,” Lin said. “I wasn’t so sure the online items were authentic. Now I frequently surf Zhao Yong Online’s website, where I find what I want and watch market trends. When everything can be bought on Taobao or T-mall, why not try something new?”

Zhao Yong Online’s success can be partly attributed to its parent company Hosane, which guarantees the authenticity of all auctioned items, which are certified by experts.

Zhao Yong, owner of both Hosane Auction House and Zhao Yong Online Auction, says there is room for both traditional and online art auctions.

“We have different items and strategies for both online and traditional auctions,” Zhao said, “Pieces going under the online hammer should appeal to a bigger group of collectors. The elite pieces that fetch incredible sums are out of the reach of most collectors and remain best suited for traditional auctions.”

While Zhao’s words make sense, a few pieces by high-profile artists have been sold for eye-catching figures through online auctions. An ink-wash painting by the late Fu Baoshi, one of the big names in modern Chinese art, sold for 1.21 million yuan last year during an online auction co-organized by Beijing Poly Auction House and Taobao.

Market potential

According to some experts, the Taobao auction could only attract such a high bid due to Beijing Poly Auction House’s strong reputation in the art world. But despite the occasional big sale, the bulk of online auctions deal with pieces that sell for between 10,000 yuan and 50,000 yuan.

Chen Mei, one of the founders of Weipaiquanqiu (微拍全球), an online art auction company established last month, sees the market potential.

“We have online auctions every four days,” Chen said. “We have about eight to 10 artworks for each auction. We’ve held eight auctions already and so far every piece has been sold.”

She says prices range from several thousand yuan for work by an unknown artist to 1 million yuan for big names like Zhou Chunya.

“We don’t promote our auctions too much. Sometimes we share information with friends through WeChat,” Chen said. “I think our advantage is that we have a small circle of bidders, meaning we can clear the deal faster. Also because not many people know about us, competition during the auction isn’t so fierce, meaning one can buy a nice piece of art for a reasonable price. Our team also carefully selects the artworks to go under the hammer.”

Shanghai artist Wang Yuhong is optimistic about the future of Weipaiquanqiu.

“I just gave them one piece that had been exhibited at Bund 18, and it sold for 80,000 yuan in a short time,” Wang said. “I didn’t expect it would sell so quickly because it’s not a cheap price. I was amazed at how many people have responded to my work on the Internet. I am quite confident about the future of online art auctions. It’s a big opportunity for artists to expose their work to a wide range of people.”

Chen says Weipaiquanqiu is “special” because it is a group of artists, their friends and some collectors.

“We know which artworks are worth buying, and most important of all, the price is reasonable. Word spreads from person to person, which will attract more people later.”

Chen says she and her team frequently post auction items on WeChat through the its official account “weipaiquanqiu,” which she considers a good platform to build up their first round of buyers.

Now Chen and her team charge a commission rate for 10 percent, which is lower than the traditional 15 percent of auction houses, and buyers don’t need to pay a deposit.

“We are similar to traditional auctions compared to other online art companies,” Chen said. “We also have previews in our office for each auction. Potential buyers can come and take a look at all the artwork at our office at Yan’an Hotel. We don’t want to limit ourselves to just small art items, and we also have quality works from some big names.

“Now we are working on building our image and brand. We don’t want to boost our business so quickly. It should be a step-by-step process for our buyers, our artists and our collectors,” she added.

“We are not building a platform merely to sell mediocre paintings. Certainly we will be offering better and higher priced works in the future.”