Online Sales and Strategies

Jun 2

Over the past five years, art dealers have increasingly embraced online channels for transactions, significantly altering their sales strategies. As the quality and functionality of digital viewing rooms have improved, dealers have used online platforms to attract clients, encourage gallery and fair visits, and complete online-only transactions.

The COVID-19 pandemic in 2020 caused an unprecedented surge in online sales for dealers, jumping from 13% of total sales in 2019 to 39% in 2020 (including 9% through art fair online viewing rooms). As in-person exhibitions resumed, online sales decreased to 22% in 2021 and 16% in 2022, with art fairs regaining some market share. However, in 2023, as fair sales stabilized, online sales returned to around 23%, primarily through dealers’ private channels.

Online sales in 2023 were categorized into three main types:

Dealers’ own online-only sales: Transactions conducted entirely online through dealers' websites, social media, OVRs, or email, without in-person viewing (20% in 2023, up 8% year-on-year).
Online art fair sales: Sales made or initiated through a fair’s OVR or other online platforms without in-person viewing (0.2%).
Online third-party sales: Transactions completed online via third-party companies or platforms (stable at 3% year-on-year).

The most significant growth in online sales since 2019 has been through dealers’ websites and OVRs, more than doubling over five years. Many dealers have invested in upgrading their platforms, boosting their online sales share and reducing reliance on third-party platforms.

Online sales rose across all dealer segments year-on-year in 2023. The largest dealers (over $10 million in turnover) had the lowest share of online sales (22%), but this doubled from 11% in 2022 and 9% in 2019. Dealers with turnovers between $500,000 and $1 million saw their online sales jump 12% year-on-year to 26%, more than doubling their pre-pandemic share. This growth was mainly due to online-only gallery sales, with third-party platforms remaining stable or declining slightly.

Research by Arts Economics and UBS in 2023 found that 65% of high-net-worth (HNW) collectors bought art online through dealers’ websites or OVRs, compared to around 30% through third-party platforms or Instagram. Despite the growth of online sales, HNW collectors still preferred in-person purchases, with 51% favoring this method in 2023, up from 42% in 2022.

Dealers reported mixed success in attracting new and returning clients through online sales. While online sales to new buyers without prior contact dropped from 57% in 2019 to 35% in 2023, some dealers found it challenging to convert one-off online buyers into regular clients. Smaller galleries saw a higher share of new online buyers in 2023, though the smallest businesses experienced a decline in this metric from 55% in 2022 to 38%.

Regular online buyers accounted for 43% of sales, with most of these collectors having visited the gallery or met the dealer before. This trend was more pronounced among larger dealers, who represent well-known artists that are easier to sell sight unseen.

Sales to established clients who had never bought online remained stable at 22% in 2023, down from 31% in 2020. This indicates a shrinking pool of buyers new to online purchases as digital transactions became a necessity during the pandemic.

Despite an apparent plateau in e-commerce growth for dealers in 2022, the importance of digital sales remains strong. Nearly half (48%) of dealers expected online sales to grow in 2024, up from 42% in 2022, while only 7% anticipated a decline. Optimism was highest among mid-sized dealers ($250,000 to $500,000 in turnover), with 56% expecting an increase in e-commerce.

Overall, while the preference for in-person transactions persists, the role of online sales continues to grow, reflecting the ongoing evolution of sales strategies in the art market.