Understanding the Buyer’s Premium

New to the world of online auctions for art, antiques and collectables? You will likely come across the term Buyer’s Premium. It is a key part of how auctions work and knowing what it means can help you bid smarter and budget better.

What is a Buyer’s Premium?

A Buyer’s Premium is a fee added to the final hammer price of the winning bid amount. It is usually a percentage (typically 10% – 30%) and is charged by the auction house to cover operational costs.

Example:

Item Amount
Winning bid £1,000
Buyer’s Premium (20%) £200
Total before tax/shipping £1,200

Why is it charged?

The Buyer’s Premium helps cover:

  • Expert cataloguing and consultancy.
  • Marketing and promotion.
  • Technology and platform maintenance.
  • Staff and logistics.

It supports the infrastructure needed to deliver a seamless and secure experience, whether online or in person.

Is a Buyer’s Premium always applied?

Yes, almost always. Whether you are bidding from your sofa or in a historic auction room, the Buyer’s Premium is a standard part of the auction process. The percentage may vary, but it is nearly always included in your final invoice.

How do I calculate the Buyer’s Premium?

Before placing a bid, review the Buyer’s Premium guidance which should be published in auction catalogues, online listings, bidder registration documents and the terms and conditions.

It only takes a second and can prevent surprises (and not the good kind) when you receive your invoice. If you are unsure about how the Buyer’s Premium will be calculated, contact the auction house directly.

Snoofa champions transparency so when bidding we recommend you click on our Live Cost Calculator. This will show you total charges including Snoofa’s own Bidding Fee.

Image showing an example of the Final Price Calculator component in the Marketplace.

Be mindful of VAT aka Value Added Tax which is likely to be added to or incorporated with the Buyer’s Premium. Depending on the VAT treatment you may need to factor in an additional 20% on the hammer and/or the Buyer’s Premium. For example if the Buyer’s Premium is 20% you will be charged 24%.

At Snoofa our Live Cost Calculator defaults to Buyer’s Premium + VAT and is displayed as one inclusive amount, following the most common form of VAT treatment in the UK.

Shipping, other taxes and insurance may also be added to your final total.

Summary

Understanding the nuances of the Buyer’s Premium is essential for you to feel like an informed, confident and happy bidder.

  • find out what the Buyer’s Premium percentage is.
  • work out your budget.
  • ask for help if you are unsure.
  • enjoy bidding!