How should auction houses handle non payment by the winning bidder?

How should auction houses handle non payment by the winning bidder?

Back on October 29, I wrote about Kau.com closing at $100,350 at DropCatch. That bidder did not pay, it’s being reauctioned. Is that the right way to handle things?

I have written many times on how DropCatch and NameJet have benefited by GoDaddy failing to secure payment.

Koupons.com closed at $6,100 on 8/17/20 at GoDaddy auctions, they did not collect payment and let the domain name drop. It was caught by DropCatch and went for $13,053.

2XPXP.com closed at GoDaddy for $1,525 back in August and was not paid. DropCatch caught the domain name and it closed at $5,000.

Luceri.com closed at $945 at GoDaddy auctions in August, no pay and DropCatch picked up $551.

Paul Nicks mentioned on Twitter that GoDaddy goes to the next bidder. However on Namepros Joe Styler wrote that it’s not always the case.

I kind of think with reauctioning you are wasting people’s time, it could get reauctioned over and over. A GoDaddy shareholder might not be happy with the GoDaddy method of just letting the domain drop, those are dollars going out the door.

Of course some will say, look GoDaddy is huge those numbers are a rounding error. You should be equipped to have methods in place that allow for next bidder each and every time. Unless no one wanted it.

How would you want to see non paying bidders handled?