I actually like re-auctions because they are more transparent, awarding to the runner-up means only one person knows the winning bidder didn't pay and it is kind of swept under the rug. I'm a little biased though because it helps with our tracking, when our software sees a re-auction we can easily remove the data from the prior auction. A huge issue with the runner-up idea, which GoDaddy had very serious problems with for the better part of a year, is this: scammers create two accounts which they use to run the price up extremely high within minutes to the point nobody else will join in, and then when it gets rolled back the scammer gets a domain that is worth thousands for $69. Replace the one banned account and rinse and repeat. It wouldn't be terribly easy with DropCatch because they have one of the tightest account verification systems in the industry, but with enough family and friends you could scam them out of tens of thousands of dollars before you run out of IDs. For what it is worth, because we can easily see when an auction doesn't complete we have a pretty good idea of their non-paying bidder rate. For auctions $100+ it was closer to 1.2% for 2017 which is extremely low, although I don't have an exact number because sometimes I clean them up by hand before our script takes care of them. Flippa, when they were still reporting cancelled auctions to us, was 6-7x that amount at least and sometimes worse. And it's literally impossible to get it to 0% although I applaud them for that goal. Overall I think they do a great job, out of more than 6,000 auctions $100+ this year only around 75 were re-auctioned as far as I can tell. It's also a really tricky situation that I'm glad I don't have to deal with... how do you handle a non-paying bidder? Imagine someone bids on your site for years, spends tens of thousands of dollars, and then doesn't pay for one auction? Do you ban them immediately? Seems a little draconian even if you're very serious about preventing fraud. And I don't think it would be necessary to roll back the price of every auction they were a runner-up in since they joined the site, issuing hundreds of refunds, since clearly they were participating in good faith up until the infraction. If one infraction doesn't warrant a ban how many does? Does it depend on how many auctions you won and did pay for? Going down this road opens you up to accusations of turning a blind eye to big spenders for your own benefit. Obviously if someone joins, bids in hundreds of auctions, wins a few dozen, and doesn't pay for any of them all in the span of a few days you're going to owe a lot of partial refunds. I would imagine most non-paying bidders are new to the site, but I bet there are plenty of grey-area situations too. From what I can tell anecdotally, they tend to batch re-auctions together, which is why the OP might think it is happening more frequently than it actually is having just spotted one of the waves.