Fine Art Bourse joins realm of online auction houses

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Following in the footsteps of Paddle8, Artnet, Auctionata, eBay as well as Sotheby’s, a new competitor has appeared on the online auction market. Fine Art Bourse or FAB, is an online sales platform founded by Australian businessman Tim Goodman.

Having worked for auction houses Bonhams and Sotheby’s, Goodman is already well versed in the world of auctions, raising €1.7 million in order to finance his start-up launching in February 2015. The entrepreneur hopes to raise a further €4.6 million according to the Financial Times.

FAB head office will be in London; however the business is looking to open offices in New York, Hong Kong and Beijing within the next 18 months. Furthermore, Goodman plans to employ 60 consultants and experts over the following months, there are currently 21 members of staff at FAB

According to the founder, FAB's financial plan relies on the reduction of costs at three levels: location space, human resources and printing. In more explicit terms: FAB will have a minimal team, favoring online sales and virtual exhibitions and will not print sale catalogues. Goodman told the FT “It is ridiculous, they cost a fortune and are terrible for the environment.”

This economic strategy will allow the auction house to reduce commission fees to 5% for buyers and sellers, a percentage to which 1% is to be added for insurance, plus a fixed cost of €280 to cover a photograph or €850 for a work worth more than €85,000. These sales are to take place in Hong Kong where the fiscal advantage for these transactions is the most attractive in the world. Only time will tell if this truly is the new business model to follow.