Interesting: eBay bidder manipulation enforcement change
zski123
Posts: 256 ✭✭✭
Just back last week from our annual automotive dealer convention. eBay Motors always has a large presence at the show. We asked one of their executives what they plan to do about bid manipulation through late cancellations of bids. It's a common practice in our industry impacting straight auctions. Two bidders or at least one bidder with two accounts drives up the bid then retracts after they've frightened off competitive bids during the auction. There is a big and sudden drop in the auction price resulting in a skewed result in the sale price. I'm sure this works on occasion for the scum bags that deploy these tactics but it almost always impacts the auction.
That said, the eBay executive said they have begun to enforce account suspensions when they see this pattern with the buyer and bidders' accounts. In some cases, eBay will automatically permanently suspend both accounts participating in this including a winning bidder. If you suspect fraud, you also have the option to report the action to eBay and they will review the case.
For anyone who sells on eBay, take note. This is a positive change that should help eliminate at least one risk of running No Reserve auctions. If you feel this applies to you on a past auction, I recommend calling eBay. They deploy a very sophisticated pattern recognition and statistical modeling to determine the probabilities of fraud. eBay Motors is a significant source of revenue for them so enough auto dealers have raised the complaint. It will definitely have a positive impact for the other categories.
Comments
I almost want to post " too little , too late" , except change is always good. Not always for the better, but good.
The culprits will then just open up new accounts and do it again. They can't stop it.
Best, SH
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Often sellers do this avoid getting ripped bc set opening bid too low with no decent bidding activity near end.
I would recommend starting auc at lowest amount u would give away for like blue sheet, then if no bidders relist possibly dropping by $5 or throw back in store at say bid plus 10 pct. Eventually it will sell. I had 2 sell yesterday from store (in inventory awhile) I had dropped price to bid plus 10 pct not more than a month ago. Many auc activity occurs in last hour or minutes.
At shows I may select about dozen coins put price sticker in red (take or pass) at bid plus 10 pct or cost plus $5 move quickly c if anyone coming in door alive or for real. If nobody looking at / asking about this material - people coming in door are broke.
Just put a statement that if there are significant bid cancellations within 48 hours of the end of the auction, you reserve the right to cancel the sale. I buried it deep in the wording, but have never had to use it. My friend was challenged one time with the same thing, as the price had dropped almost 80% in the last few hours, and ebay did not hold him to the sale.
I remember seeing bidders with over 1000 bid retractions in a 6 month period . I don't think they were kicked off .
To me 2 or 3 retractions in a 6 month period would be a lot .
eBay has always had a rule around how late you can retract a bid.
Can't quite remember what the time period is...maybe it needs to be lengthened.
Dave
It was 12 hours when we first began on eBay Motors. That was years ago. I don't know why but I was surprised to find the same pattern when I first began to engage in coins. Again, I don't know why I was surprised.
What they can do is boot off the accounts that are not cancelling the transaction. What happens is we find a new account is the sacrificial lamb and cancels the bid for the benefit of the winning account. The difference is they will go after both accounts which is long overdue.
Think the time limit was 12 hrs, but that was a long time ago.
I don't know what the time limit might be,
but the seller should have an option to restart an auction if a bid is cancelled.
Thanks for sharing the information !!!
More specifically, they should let the bidder restart without paying the penalty. When speaking to the eBay executive, we simply told him that if this doesn't get under control, sellers will have no choice but to organize shill bidding efforts. It's not what anyone wants as I source vehicle inventory from the site from time to time. I don't want that but it's going to happen if the attempt to address this isn't successful.
I believe your Ebay execs are simply memorizing a script which they use to tell everyone who has concerns....
Nothing is going to happen....IMO
100% agree with this. They will take a sale any way they can get it!
You are probably right. It's too bad.
Yes but bid retractions lower final value fees. Why wouldn't ebay be against these repeat offenders hurting their bottom line?
seen bidders with hundreds of retractions..... called ebay …... did nothing