warning Namecheap.com's Marketplace Questionable Policy

[silentg]

I was part of a domain auction and ended up losing the auction to another bidder. That winning bidder tried to sell the domain before paying for it and didn't pay for the auction at the end since they couldn't find any offer within 2 day time period.

I was offered the domain for purchase but the problem was that the winning bidder had 17 bids in total and they only voided the winning bid. They wanted me to pay $2915 without removing the other bids. I went back and forth with their customer service team and they wouldn't see the issue. Worst of all their customer service team wasnt even reading the support ticket properly before sending the reply.

See the screenshot: Winning bidders bids are highlighted:

It took a twitter post and couple of days for them to notice the issue:

https://twitter.com/x/status/1505495549293871104

when they asked me to pay for it, they said there wouldn't be any penalty:

and then when they cancelled the auction the next day, they sent me the opposite e-mail:

This is their policy not to cancel bids.

This post is to warn others when you're offered to buy a domain that winning bidder didn't pay. Check the bidding history before paying.

 

[silentg]

@Soofi
The shill bidding problem at NameCheap is worse. Some buyers are willing to pay for the domains: Take a look
https://www.namecheap.com/market/healthreviewglobal.com/?ref=recent
https://www.namecheap.com/market/sale/nFzykGUQhtbXeDaTma2aiE/cheatgame4u.com/?ref=recent
https://www.namecheap.com/market/sale/7VQ2FanzeX6iZ2oHYKJmAP/littlesaplingtoys.com/?ref=recent

This is just from the first page of sold domains.

 

[raptorx]

That was NamecheapCEO bidding on his own domains

 

[Way3]

I'll chime in and say I think their whole auction process is suspect, at best. I tried it today after reading the various posts here and on Twitter.

In one instance I submitted a bid with over a minute to go on the auction, there were no other bidders registered on the system, it didn't take. Went to submit it again with over 30 seconds to go, and still nothing. Third time, oh sorry, auction has ended. And it showed an "ended" status (as one would suppose it would, if there were no bidders). Note that other bids I was placing on other domains were taking just fine during this time period.

On other auctions I was watching for domains with no bidders, after the auctions had ended certain names (some were valuable ones imo) went to a "cancelled" status.

I asked their Customer Service about this, and was told, all domains go to a cancelled status if the bid wasn't paid on time - but there were no bidders reflected and I was watching them all morning long. But the one where my bid didn't take didn't go to a cancelled status ever.

Perhaps there's a glitch. Perhaps they show as "ended" first and then flip to "cancelled." But the process just feels off, as do the explanations.

 

[silentg]

This is still happening at NameCheap. 2nd Bidder has paid for the auctions.

 

[william]

This happened to me on Dynadot as well.

I can see three logical reasons why they allow this to happen:

1) Higher profits
2) Two people may bid up a name from $2 to $2 million, preventing all the potential buyers bidding on it. And if your first bid before the fake bids was $2, you get the domain for that much. A lot of scamming potential.
3) Technically, your highest bid is what you were willing and agreed to pay (even though you were competing against a fake bidder).

So, there is no great solution to this. The best thing to do is to refuse to pay and have the auction re-run. The fake bidder should have their IP, payment, and address information banned. All bidders should have to submit valid ID to be confirmed. But none of this will prevent sites like DropCatch.com from using shill bidders to drive up their profits.

 

[silentg]

This is still happening at NameCheap. I won 4 domains and a shill bidder was part of it. They're refusing to give me credit.

 

[AEProgram]

If any regulatory body would ever take a real look at the auction side of things in this industry, we would have probably 50 people going to jail for life.

All bids of a deadbeat need to be removed. Assume they were a shill bidder.

Dropcatch does it right, cancel and redo. The reason probably is because domainer scammers do their own bidding up and then don't pay with one account and get it from another.

After getting scammed out of a domain on this site, I learned there are a lot of frauds in this business. The whole way 5 minute auction extend bots operate is evil and could be stopped.

 

[silentg]

NameCheap hasn't researched or learned from history:

SnapNames Employee Caught Bidding on Auctions
https://domaininvesting.com/snapnames-employee-caught-bidding-on-auctions/

Expired Domain Services Let Employees Bid Against Customers
https://domainnamewire.com/2008/06/20/expired-domain-services-let-employees-bid-against-customers/

Buying Bids at Flippa: A look at marketplace integrity
https://domainnamewire.com/2015/01/26/buying-bids-at-flippa/

 

[silentg]

They say they do not allow shill bidding. C'mon NameCheap, I sent you screenshot proofs from the domains I won.

 

[jamesau]

Just bumping this to ensure any ongoing problems can be relayed.

 

[likemike]

This stuff happens in the real world boys! Good luck on the next auction!

 

[kesen]

Same experience, terriable on NameCheap.
They need to leart to Godaddy, to remove all bids that the giving up payment bidder.

 

[silentg]

Sounds like a bug. If you bid under 5 minute mark then auction gets extended. Timer resets and starts from 5 minutes.

If a domain gets no bids then it goes into cancelled status. Some domains do get relisted for another 10 days auction and others go to the drop.

 

[Way3]

Sounds like a bug. If you bid under 5 minute mark then auction gets extended. Timer resets and starts from 5 minutes.

If a domain gets no bids then it goes into cancelled status. Some domains do get relisted for another 10 days auction and others go to the drop.

As I mentioned, I'd buy that it's a bug - but they weren't offering that as an explanation so....

 

[slide_show]

Can anyone explain this? This is on a live auction with several days remaining...
Looks a like the shill has taken this guy all the way to his maximum, then somehow cancelled the bid?

 

[GoKaizen]

Shill bidding.

They have finally banned the bidder and cancelled the new auctions.

 

[LoveCatchyDomains]

Thanks for the concrete examples.

So for two of the abandoned "top bid sales,", the ultimate auction price may have possibly been increased over 5x higher thanks to the that bidder who then declined to pay.

That is a very concerning pattern.

Does anyone doubt that Namecheap should allow the losing bidders to decline to buy the domains when the top bidder ultimatelhy declines to pay? At least their message to you states that you do have the right to ignore the invoice if you feel the bidding was unfair.

After all, Dynadot and GoDaddy gives the option in such circumstances for the lower bidder to elect to buy the domain. This is discretionary, not mandatory. That is important for the integrity of their platforms. Surely, Namecheap would likewise wish to demonstrate such prudence.

 

[LoveCatchyDomains]

Thanks for sharing that. It's amazing that someone would be selling the domain even before they bought it?! Curious things, these domain auctions.....

 

[namezest]

Dynadot does not do this,, you all know me as someone who speaks his mind and truth. Namecheap is definately strating to follow in Godaddy foot steps. Fed up with sham & scam Need others to talk to me via pm.. I have an answer.

 

[Shimmy]

Same experience, terriable on NameCheap.
They need to leart to Godaddy, to remove all bids that the giving up payment bidder.

According to this thread their CEO says that should no longer happen, contact him

 

[LoveCatchyDomains]

Is there any

49448
Another auction without paying bidder. This domain got relisted for auction again.
Show attachment 223013


This bidder "b9d2acc80da8" is still an active at NameCheap. Even though the bidder should've been banned, he/she is allowed to bid up auctions. Reported it to them yesterday and no action has been taken.

Show attachment 223389
Show attachment 223391
Show attachment 223392

That is disturbing, if truly someone is bidding up the domains, then not paying, and being allowed to continue doing this on other auctions. Thanks for alerting us to this concern.

 

[silentg]

Customer service response after I sent proof.