It's simple economics. An auction house has to make money. We don't seem to have a problem with the companies we work for making money, but boy, those greedy SOB's at (fill in the blank) are really sticking it to us. As consignors have worked consignment fees down to nothing in many cases, just where does the auction house make a profit after creating a glossy, full-color catalogue, running an online auction and then fulfilling it?
The truth is that psychologically, sellers feel more comfortable with paying fees they never see. The buyer's fee is paid by the seller whether he realizes it or not as it is money paid for his card(s) that he never receives. Yes, sometimes buyers fail to factor in the 20%, but this is the exception rather than the rule. It's the same reason why your paycheck has tax deductions taken out each time you are paid rather than paying you your gross earnings and asking you to write a check to the government taxing authorities at the end of the year.
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