Every day we receive questions about buyer’s premiums—what they are, who sets the amount, why some sellers have them and others don’t, and more. We know the concept can be confusing! Fret not, we’ve got answers to your burning questions right here.
What is a buyer’s premium?
The buyer’s premium is a percentage additional charge on the hammer price of the lot that is paid by the winning bidder. On Proxibid, the buyer’s premium is set by the seller, and can vary from sale to sale depending on the inventory up for bid.
Who sets the buyer’s premium?
On Proxibid, each seller sets the buyer’s premium for their auction.
Why do some sales have premiums while others do not?
Depending on the inventory up for bid and other terms and conditions for an individual sale, some sellers may choose to defer the buyer’s premium. This is a decision made by sellers on a case-by-case basis.
Does Proxibid keep the buyer’s premium?
No, the buyer’s premium is a fee determined by the seller and is paid to the seller at the close of the auction.
How do I pay the buyer’s premium?
The buyer’s premium is added to your invoice at the close of the auction, along with other fees such as sales tax or shipping.
Where can I find the buyer’s premium for a specific auction?
Each auction includes its own terms and conditions as set by the seller. The buyer’s premium is always located at the top of the auction page, as well as in the terms of sale.
Is the buyer’s premium taxable?
Typically, the total purchase price of an item at auction is made up by hammer price plus the buyer’s premium. Since sales tax is charged on the total purchase price of an item, yes, the buyer’s premium is taxed.
Still have questions about buyer’s premiums? Remember, Proxibid’s customer support team is available daily from 7 am – 10 pm Central to assist with all your Proxibid needs.