For frequent buyers of Chinese antiques, especially online bidders, Dreweatts Auction’s recent policy requiring a £5,000 deposit for new or unverified registrants is a welcome change. Online auctions have opened up markets to global buyers, yet this accessibility also brings challenges—particularly the issue of “ghost bidding” from overseas participants who bid on items but often have no intention of completing the purchase unless they can pre-sell it.
As a regular buyer, I’ve encountered this firsthand. It’s frustrating to place genuine bids on sought-after pieces only to be outbid by a “buyer” who later fails to pay, leaving the item to reappear for sale weeks later. In these cases, the auction loses integrity, with committed bidders competing against what amounts to speculative, non-committal bidding from individuals who aren’t serious about honoring their bids. Dreweatts’ new deposit policy aims to curb this problem by ensuring that only serious bidders participate in their auctions, benefiting both the auction house and genuine collectors.
Dreweatts’ new policy requires that all new registrants, as well as existing clients without a purchase history, pay a £5,000 deposit to participate. This deposit can be made online via SagePay, through a bank transfer, or by debit or credit card in person. The auction house must have cleared funds by 12:00 noon GMT the day before the auction, and unsuccessful bidders will have their deposits returned within seven working days, albeit without interest.
This approach could have a major positive impact on the auction process. By ensuring that each participant has a financial commitment upfront, the new rule serves as a deterrent to those with speculative intentions. Genuine bidders can be more confident they aren’t competing against ghost bids that artificially drive up prices, creating a fairer and more transparent environment for all.
Expanding on Dreweatts’ policy, I believe a broader escrow-like service would further improve the auction experience. Such a service could securely hold a buyer’s deposit across multiple auction houses, alleviating the need to submit separate deposits for each auction. For instance, a buyer could deposit a sum with an escrow company, which would verify their funds and vouch for them with participating auction houses. This system would ensure auction houses know they’re dealing with committed bidders while saving buyers the hassle of placing multiple deposits.
Dreweatts’ deposit requirement is a forward-thinking move toward ensuring accountability and trust in the auction market. It discourages speculative bidders, reduces the risk of unpaid lots, and fosters confidence among both buyers and sellers. For serious collectors and buyers, the policy creates a fairer, more transparent marketplace where bids are genuine and competition is meaningful.
