The concept of a buyer’s premium plays a significant role in online auctions, especially within specialized platforms such as M@c. This additional cost, applied on top of the winning bid, ensures the auction platform's operational expenses are covered while providing services to both buyers and sellers. The premium is typically calculated as a percentage of the final auction price and is added to the total amount due upon completion of the sale.

Here's a breakdown of how the buyer’s premium is structured:

  • The premium is added to the final bid price.
  • It is calculated as a percentage.
  • The rate can vary based on the auction platform or item category.

"The buyer’s premium represents an extra fee, which is a common practice in many auction houses, including online auctions."

For instance, in some cases, buyers may face the following premium structure:

Bid Range Premium Rate
$1 - $500 10%
$501 - $1,000 8%
$1,001 and above 5%