Namecheap Makes 2 Changes to Auctions to Enhance Trust

In an email sent to customers this morning, Namecheap announced two changes to its domain name auction Marketplace. The Marketplace platform will assign user badges to illustrate the number of domain auctions bidders have won. The badge levels are Bronze, Silver, Gold, and Platinum. In addition, when an auction winner does not pay, it will be re-auctioned rather than offered to the runner up bidder.

The rationale for these changes is “[t]o make sure the Marketplace remains a trusted platform, and to ensure that each auction is conducted fairly.”

Here’s the email I received from Namecheap explaining the changes that were made and why the changes were made:

Domain Auctions updates
Hi Elliot,

To make sure the Marketplace remains a trusted platform, and to ensure that each auction is conducted fairly, we have introduced the following changes:

•
User Badges: giving you confidence that you’re bidding against real users with records of auction participation.

•
Removing Runner-up option: reducing cases of improper bidding practices.

What are User Badges?
You should feel confident that you’re bidding against real users, and by showing you their history, you can now validate their legitimacy yourself. User Badges appear next to bidder IDs in each listing’s Bid History section. The badge tiers are Bronze, Silver, Gold, and Platinum, which are based on the number of domains won from auctions and total amount spent.

To know even more about the bidders you’re up against, hover over their User Badge. You’ll see their revenue tier, win count, and join date.

Learn more about User Badges in our Auctions Bidding Guide.

Why have we removed the runner-up option?
To maintain our platform’s fair approach to Auctions, we no longer offer unpaid auctions to second-place bidders. Now, the domain will be re-auctioned instead of automatically being offered to the runner-up. This removes cases where one user has multiple accounts and places both the winning and runner-up bid, then uses the runner-up account to get a domain with a lower bid.

The runner-up option will still be offered in some rare cases, like registry premium listings with high renewal fees. But these auctions will be closely monitored to avoid any abusive behavior.

At Namecheap, we always strive to ensure that Marketplace Auctions remain a trusted, transparent, and fair platform for all our users. We are committed to continually improving the integrity of our marketplace, and plan to release additional verifications for new users by Q4 2023. When we know the exact launch date we will let you know.

For more information on Auctions and any upcoming changes, read our Auctions Bidding Guide.