If you've ever browsed an online auction and wondered why the final price is higher than your winning bid — the buyer's premium is the answer. Here's everything you need to know before you bid.

What is a buyer's premium?

A buyer's premium is a fee charged by the auction house on top of the hammer price (your winning bid). It's expressed as a percentage of the hammer price and is added to your total payment when you win a lot.

For example: if the buyer's premium is 20% and you win a lot at £100, your total payment is £120 plus VAT where applicable.

Why do auction houses charge a buyer's premium?

Auction houses charge a buyer's premium as part of their revenue model. It helps cover the platform's operating costs and, in many cases, subsidises a lower or zero seller commission. At William George, we charge 0% seller commission — meaning sellers list and sell for free, keeping 100% of their hammer price. Our platform costs are covered by the buyer's premium instead.

How much is the buyer's premium?

Buyer's premiums vary between auction houses and individual lots. At online auctions, it's typically between 10% and 25% of the hammer price. The buyer's premium for each lot is always clearly displayed before you bid, so there are no surprises. Always factor it into your calculation of the total amount you're willing to pay.

Is VAT charged on the buyer's premium?

This depends on the auction house and the type of goods. In many cases, VAT is charged on the buyer's premium itself, not on the hammer price. Each lot listing will make the applicable charges clear, so always read the full terms before bidding.

Are there other auction fees to be aware of?

Delivery or collection fees: Some platforms charge for delivery or offer a collection option. Know the logistics cost before bidding.

Payment fees: Some platforms charge a small fee for card payments. Bank transfer is usually free.

Storage fees: If you win a lot and don't collect or arrange delivery within the stated timeframe, some auctioneers charge daily storage fees.

How to calculate your total cost at auction

Work backwards from the maximum total you're willing to pay: decide your maximum total (hammer price + buyer's premium + delivery), subtract the buyer's premium percentage to find your maximum hammer bid, then subtract delivery costs. That's your maximum bid.

Example: You're willing to pay £240 total. Buyer's premium is 20%, delivery is £20. Your maximum hammer bid is (£240 − £20) ÷ 1.20 = £183.

Does William George charge a buyer's premium?

Yes — the buyer's premium at William George is clearly displayed on each lot before you bid. It varies by lot and is always factored into the price summary shown at checkout. There are no hidden fees. Unlike most auction platforms, we charge 0% seller commission, meaning sellers keep their full hammer price.

Ready to start bidding? Browse our live auctions on William George — hundreds of lots live every week across dozens of categories.