Namecheap Market - Canceled Auctions?

[Zeeble Domains]

It has happened to us many times, but lately much more frequently, that many of the auctions we win at Namecheap get canceled a day or two after we win them.

In fact, out of the last 20 auctions we won, 18 got canceled (see screenshot). That is a 90% cancellation rate.

I have contacted Namecheap support multiple times, and they say there is nothing wrong with our account, and that "such situations are not frequent". However, they do seem to be frequent.

I just wanted to post our experience to see if anyone else has had something similar happen to them. We participate in multiple marketplaces, and this is the only one where this happens with such frequency.

 

[tld4me]

Is there a pattern with the domains you have noticed this with?

Look at the type of auction, look at the expiration dates for the domains, look at the registrars the domains are currently at, the registry for the domains, etc.

I know this doesn't sound helpful and just like more work for you, but If you find a pattern, it might lead you to the reason this is happening.

 

[Yanosh]

Is there a pattern with the domains you have noticed this with?

Look at the type of auction, look at the expiration dates for the domains, look at the registrars the domains are currently at, the registry for the domains, etc.

I know this doesn't sound helpful and just like more work for you, but If you find a pattern, it might lead you to the reason this is happening.

These are all from namecheap’s partner namesilo.
It seems that the owner can decide to renew a domain even after it is listed on namesilo’s expired auctions unfortunately.

 

[Gabriel360]

These are all from namecheap’s partner namesilo.
It seems that the owner can decide to renew a domain even after it is listed on namesilo’s expired auctions unfortunately.

Namesilo is the problem.

For Namesilo, the owner of an expired domain name can decide to renew it at ANY point DURING an auction.

And it seems like Namesilo also sends an alert to the domain owner the moment their expired name gets a bid.

It's like a more accurate form of domain appraisal.

Owner of a domain name can just let his domain name expire and let other investors bid against each other until they are blue in the face.

And then renew it before the auction is concluded.

DON'T bid on domain names from Namesilo. And the cancellations will stop.

Auctioning off a name that could still be renewed by the owner is weird.

I think Namesilo is the only registrar that does that weird thing.

 

[Zeeble Domains]

Is there a pattern with the domains you have noticed this with?

Look at the type of auction, look at the expiration dates for the domains, look at the registrars the domains are currently at, the registry for the domains, etc.

I know this doesn't sound helpful and just like more work for you, but If you find a pattern, it might lead you to the reason this is happening.

I took a look at the WHOIS for traditional domains, they are mostly at Namecheap. There are also many cancelations of Handshake domains, not sure how to investigate those.

 

[Zeeble Domains]

Namesilo is the problem.

For Namesilo, the owner of an expired domain name can decide to renew it at ANY point DURING an auction.

And it seems like Namesilo also sends an alert to the domain owner the moment their expired name gets a bid.

It's like a more accurate form of domain appraisal.

Owner of a domain name can just let his domain name expire and let other investors bid against each other until they are blue in the face.

And then renew it before the auction is concluded.

DON'T bid on domain names from Namesilo. And the cancellations will stop.

Auctioning off a name that could still be renewed by the owner is weird.

I think Namesilo is the only registrar that does that weird thing.

By looking at the current WHOIS, all traditional domains (not handshake) seem to be at Namecheap. So, unless they were at Namesilo and then transferred to Namecheap, I am not sure Namesilo was the culprit.

Thanks for letting me know though, I will keep an eye next time I bid to see if the domain is at Namesilo.

 

[Gabriel360]

By looking at the current WHOIS, all traditional domains (not handshake) seem to be at Namecheap. So, unless they were at Namesilo and then transferred to Namecheap, I am not sure Namesilo was the culprit.

Thanks for letting me know though, I will keep an eye next time I bid to see if the domain is at Namesilo.

Yeah, I thought you made the comment I quoted.

Reach out to their support to see if Namecheap has a similar system that lets the owner renew the domain name after it's already in auction.

 

[tld4me]

By looking at the current WHOIS, all traditional domains (not handshake) seem to be at Namecheap. So, unless they were at Namesilo and then transferred to Namecheap, I am not sure Namesilo was the culprit.

Thanks for letting me know though, I will keep an eye next time I bid to see if the domain is at Namesilo.

For the domains that are NOT handshake domains - what is the current status of those domains? Are any currently in pending delete? Did the "Updated" dates change AFTER the auction ended? Did any of the expiration dates change AFTER the auction ended?

Edited to add: If the registrar during the auction, and at the end of the auction, for the domains IS Namecheap: they really are the only ones that can tell you specifically what is happening. If they are being renewed by the previous registrant, I would think they would tell you and I would push them if they are not telling you what is happening.

 

[enterscope]

I've won about 12 names, and had this happen twice I think. Just the way it goes sometimes, had it happen at Godaddy a few times as well.

 

[tld4me]

https://www.namecheap.com/legal/domains/marketplace-agreement/

Not sure if this applies to the domains you have been bidding on:

4. Expired domain sales ("expired auctions").​

From time to time, Namecheap may list for sale domain names that have entered into a Post-Expiration period for their original registration ("Expired Domains"). Transactions involving Expired Domains may utilize an auction format. Any such sale will not be final until the end of the Post-Expiration period for the Expired Domain. During the entire Post-Expiration period, the original registrant has the right to renew the Expired Domain, regardless of any payments You may make in an effort to purchase the Expired Domain. By bidding on the Expired Domain, You as Buyer acknowledge and agree that if You/Buyer has the winning bid, the transfer of the Expired Domain will not be completed until after the Post-Expiration period lapses. If the Expired Domain is renewed by the original registrant, You will receive an account credit for the full purchase price, or, at Namecheap’s sole discretion, a refund.

 

[jberryhill]

 

[Zeeble Domains]

For the domains that are NOT handshake domains - what is the current status of those domains? Are any currently in pending delete? Did the "Updated" dates change AFTER the auction ended? Did any of the expiration dates change AFTER the auction ended?

Edited to add: If the registrar during the auction, and at the end of the auction, for the domains IS Namecheap: they really are the only ones that can tell you specifically what is happening. If they are being renewed by the previous registrant, I would think they would tell you and I would push them if they are not telling you what is happening.

Two of them are showing both pendingDelete and redemptionPeriod. Strange.
Others show status ok, but a recent updated date.

 

[Zeeble Domains]

https://www.namecheap.com/legal/domains/marketplace-agreement/

Not sure if this applies to the domains you have been bidding on:

Makes no sense that they would allow bidding on a domain that can be still renewed by the original registrant.

Dynadot used to be liked that and they were smart enough to change it.

 

[jberryhill]

The rules are usually printed inside the box the game comes in. Here, the terms are pretty clear.

Makes no sense that they would allow bidding on a domain that can be still renewed by the original registrant.

Not really. In order to offer expired domains for auction, registrars have two choices. Ultimately, domain names have a 30 day auto renew period and then a redemption period, followed by a pending delete period.

However, registrars don't actually have to let their customers use those periods. ICANN's rules seem to make it mandatory for registrars to offer the full redemption period of gTLDs, but several registrars contract around that requirement. Usually, they do that precisely for the purpose of being able to provide an auction period before they would otherwise have to pay the wholesale renewal fee to the registry.

A registrar *can* undertake the cost of renewing a domain at the end of the 30 day registry auto-renew period on their own account, if they know they can auction the domain name, or they can start an auction prior to the end of the 30 day auto-renew period, and then only renew the domain name if the name attracts at least one bid. But, in order to do that without cancelling the auction, they have to shave some time off of the period in which the prior registrant can renew the domain name.

Different registrar auction systems have struck this balance at different points in the post-expiration life cycle, depending on whether they would rather deal with (a) pissed-off registrants who feel they've been cheated out of renewal/redemption opportunities, or (b) pissed-off auction participants who didn't get the names they wanted in post-expiration auctions.

If you think about it, you'd much rather have auction terms which make it clear that the auction will be cancelled if the registrant renews, than you would have registration terms which are going to generate ICANN Compliance complaints by people who have lost a domain name they've been using (even if you are compliant by virtue of those registration terms). It makes a lot more sense to piss off people who are upset by not having something they never had in the first place, with rules outside of any ICANN regulations; than pissing off people who lost something they actually had, with rules that arguably might or might not be compliant with ICANN.

In the long run, which option is going to cost you more as a registrar?

 

[fadhel]

it is easy namecheap give more advantage to customer renew domains even on auction this is normal , but renew it with more price only on that case

 

[Zeeble Domains]

The rules are usually printed inside the box the game comes in. Here, the terms are pretty clear.

Show attachment 270448



Not really. In order to offer expired domains for auction, registrars have two choices. Ultimately, domain names have a 30 day auto renew period and then a redemption period, followed by a pending delete period.

However, registrars don't actually have to let their customers use those periods. ICANN's rules seem to make it mandatory for registrars to offer the full redemption period of gTLDs, but several registrars contract around that requirement. Usually, they do that precisely for the purpose of being able to provide an auction period before they would otherwise have to pay the wholesale renewal fee to the registry.

A registrar *can* undertake the cost of renewing a domain at the end of the 30 day registry auto-renew period on their own account, if they know they can auction the domain name, or they can start an auction prior to the end of the 30 day auto-renew period, and then only renew the domain name if the name attracts at least one bid. But, in order to do that without cancelling the auction, they have to shave some time off of the period in which the prior registrant can renew the domain name.

Different registrar auction systems have struck this balance at different points in the post-expiration life cycle, depending on whether they would rather deal with (a) pissed-off registrants who feel they've been cheated out of renewal/redemption opportunities, or (b) pissed-off auction participants who didn't get the names they wanted in post-expiration auctions.

If you think about it, you'd much rather have auction terms which make it clear that the auction will be cancelled if the registrant renews, than you would have registration terms which are going to generate ICANN Compliance complaints by people who have lost a domain name they've been using (even if you are compliant by virtue of those registration terms). It makes a lot more sense to piss off people who are upset by not having something they never had in the first place, with rules outside of any ICANN regulations; than pissing off people who lost something they actually had, with rules that arguably might or might not be compliant with ICANN.

In the long run, which option is going to cost you more as a registrar?

It is possible to not piss off registrants while at the same time not pissing off auction participants.

For example, Dynadot makes it clear that registrants have 30 days after expiration to renew. If they don't, then from that moment the domain is in auction. Once it is in auction, if it has a bid, then the original registrant can no longer renew it. If the auction has bids, the domain is practically guaranteed to go to the winner, as long as he/she pays on time. Everyone knows what to expect, and no one is pissed off.

I believe all registrars should follow this model, as it strikes the perfect balance between the rights of the registrant and keeping auction participants happy.

 

[jberryhill]

Yes, but they do that by not making the Redemption Period procedure available to registrants:

In fact, they announced the curtailment of the full post-expiration renewal options in a post here:

https://www.namepros.com/threads/dynadot-renewal-policy-changes.1307886/

To be clear, they are entitled to do that, but it will inevitably generate some pissed-off registrants.