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EcommerceBytes-NewsFlash, Number 467 - January 21, 2003 - ISSN 1539-5065     | Next
The Problem of Deadbeat Bidders in Online Auctions
By Ina Steiner
EcommerceBytes.com
January 21, 2003




The problem of "deadbeat bidders" has been getting some attention in the mainstream press due to hoax bids on high-profile online auctions. CNN reported on the problem Trek Aerospace had with its eBay auction of a prototype of its SoloTrek XFV flying machine. (Hoax bidding surpassed $1 million.) Tech TV did a nice piece on the problem; to view the video clip, go to: http://www.techtv.com/news/shownotes/story/0,24195,3413640,00.html and click on the button that says Deadbeat Bidders Plague Online Auction.

Early results of AuctionBytes' survey on auction management tools show that users are very interested in tools to detect and prevent deadbeat (or non-paying) bidders. While the FBI told Tech TV the problem is a "nuisance," it's actually a serious problem for online sellers. For high-profile or high-ticket auctions, sellers can use bid verification services from eDeposit and Transrow.

ChannelAdvisor currently offers a program called BidAssure for users of its auction-management services. BidAssure attacks the problem of deadbeat bidders in three ways: through features in an enhanced checkout system, a bid-blocking feature, and a multi-seller bid-blocking network. (The bid-blocking features is only available to ChannelAdvisor's enterprise clients.)

Look for more tools that attempt to aid auction sellers in avoiding deadbeat bidders.

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  • ChannelAdvisor Tackles Online Auction Fraud for Merchants - September 25, 2002, Issue #400
  • The Problem of Deadbeat Bidders in Online Auctions - January 21, 2003, Issue #467
  • eBayDeadbeats.com Puts Itself for Sale on eBay - April 10, 2003, Issue #516
  • eBayDeadbeats.com for Sale on eBay - March 24, 2004, Issue #724


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