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Disputing Sedo auction on their performance failure - a cautionary tale ...

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Here's the jist...

After protracted negotiations with the buyer on a .co.uk domain through Sedo it seemed undervalued so I took their final bid to a 7 day auction commencing 08/02 and ending 15/02 (winning bid more than $8.5k).

12/02 Mid auction - I received a request for information from a potential bidder through Sedo's message board system and I responded to this requests within minutes.

13/02 I logged in and noticed that my response was still "unpublished" as it was awaiting Sedo moderation and fired off an urgent inquiry to Sedo support.

That remained unanswered and as my response to the buyer remained unpublished on the following morning I sent a capitalized urgent request to Sedo flagging the fact that the auction was due to end in a couple of days and that it was vital they moderate my response without delay.

14/02 Again this went unanswered and as my response to the buyer remained unpublished I fired off another support request.

15/02 - a full 3 days after my response to the interested party it remained unpublished and again I contacted Sedo requesting urgent attention and asking them to extend the auction to allow the interested party a chance to consider my response.

When the auction closed on 15/02 my response had still not been published and a couple of hours later I received this:

"Thank you for getting in touch with us. Comments have to be manually accepted before they can be displayed in the bid thread or auction page. If the comments were placed during non-business hours, it may take longer for approval. We will not be able to extend the auction for this reason. As the domain is currently in transfer, please contact the assigned Transfer Specialist with any further questions."

I responded through Sedo's transfer center:

"I am not happy with the way that Sedo has conducted this auction. I received a question from an interested party through your system on Friday 12/02 and responded immediately. Despite 3 separate support requests, only one of which was answered today, my response remained unpublished by the time the auction ended - a full 3 days later!

The result - I lost out on potential bids for the domain.

It is simply not acceptable that you take more than 3 days to moderate the response to a potential bidder's question on a 7 day auction and I am currently considering my options regarding the legitimacy of this auction as a result of your failure to provide an adequate moderation or support service.

I look forward to your response, and an offer of suitable compensation, regarding Sedo's failure in this matter.
"

18/02 a Sedo transfer agent contacted me by telephone.

I explained the nature of my complaint and he looked at the notes relating to the domain and agreed that it had been unacceptably managed not just on this occasion but in a previous auction - on that occasion Sedo canceled the auction as the winning bidder did not respond to them. Fair enough - but I had asked them to at least inform the other bidder in the auction that the domain was available again but was ignored.

The agent was polite, sympathetic and seemed very competent. I was reassured. During this call he explained that his manager was on holiday but that he was sure that they would compensate me if I chose to proceed. He also offered to cancel the auction there and then for me.

He suggested that I proceed normally and await the return of his manager and to see whether the buyer was legitimate. I agreed to do this on the basis that I would be compensated for what I considered their mismanagement of the auction process.

22/02 From Transfer agent: "Please be informed that the byuer (sic) got back to me regarding the payment that he has sent it via wire transfer and that we should receive it in the coming days."

22/02 my immediate response "Hi, thanks for letting me know. Could you please now confirm an offer of compensation commensurate with the failure in service I have received relating to this, and my previous auction, as we discussed."

23/02 From Transfer agent: "Hi, Some sort of compensation will definitely be put into consideration, but the person to make that decision on currently on holidays and will be back on Thurs. Hopefully the payment would have been received by then too."

26/02 I am notified that Sedo have received payment and are requesting the website assets from me. I respond:

"Before I get into any of this or even accept the validity of this auction I will require a clear offer of compensation from sedo in regard to the mismanagement and failures associated with their running of this and the previous auction for this domain.

Discussed in detail with agent on phone and still awaiting a response
."

26/02 From Transfer agent: "We have received the payment for the domain and we can now proceed with the transfer, before we carry on the buyer needs to have the details on the website, hence the request. Regarding the compensation, I have just spoken to my director and he mentions that due to the fact that the initial cancellation was not because we did not do our work, but because the buyer did not send the payment. And also due to the back log our customer service team had (though they sent you a response), there would not be compensation on this one."

I respond: "I therefore refuse to accept the auction as valid.

It was absolutely clear from our telephone conversation that you recognized sedo's failures in this matter and that were I to continue with the transfer process rather than terminating it there and then (which you offered to do) compensation would be forthcoming....

...I can clearly not be held responsible for a "backlog your customer services team had" and my complaint relates to this auction and not the previous one. My minimum expectation from you as a result of this is that you waive your fees on this auction and offer some form of credit for the promotion of my other domains...
."

So far I have heard nothing back. I am quite prepared to honor the auction if they take my complaint seriously -am I wrong to expect Sedo's auction and customer services systems to respond in some way within the 7 day auction period or to expect a reasonable standard of customer service on a $8000 transaction?
 
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They do seem to have serious failings on the customers services side. That's clear for all to see by some of the threads here. I haven't had many dealings with sedo, and so others may have a different view, but in your shoes I have be quite peeved. 3 days is a long time to take to forward a simple message. It surely shouldn't be all that difficult for them to approve or otherwise within 24 hours.
 
Disgraceful on Sedo's part - it beggars belief sometimes just how poorly Sedo is run considering the money they earn from the domaining community.

I wouldn't hold your breath in terms of compensation however. Hopefully someone at Sedo will be big enough to prove me wrong. They should at the very least waive their commission.
 
How ironic, the word 'Sedo' is Latin for 'to settle, smooth, calm, allay'!

Ur' avin' a larf!!
 
So I am learning. How has a company with such a poor reputation come to dominate the marketplace?
 

Have you not got the phone number of your account manager?
I don't bother with email requests... a quick call is much faster.
 
How ironic, the word 'Sedo' is Latin for 'to settle, smooth, calm, allay'!

I am sure they said its short for Search Engine for Domains Oh.... or something :)
 
They've basically admitted responsibility and offered me one free featured listing (value £20). I've rejected this and removed all my domains from sale on Sedo until this is resolved.

"I have just been in a meeting with one of our directors (because I cannot take the decision on my own), just before your email came in. He mentions that we could offer you a free showcase for any domain of your choice since all that happened was no fault of yours, but due to negligence on our side. "

Although I've strongly argued that they should waive their commission in this case they won't budge - even though I've offered to meet them halfway and pay half the commission on this deal.

Currently considering whether to swallow it and take a £5k sale on a domain sedo has appraised at £11.5k given that they prevented me from responding to a potential bidder within a reasonable time frame.

Meanwhile the buyer's money is sitting in their escrow account and I bet they haven't explained the delay to them!
 
They've basically admitted responsibility and offered me one free featured listing (value £20). I've rejected this and removed all my domains from sale on Sedo until this is resolved.

"I have just been in a meeting with one of our directors (because I cannot take the decision on my own), just before your email came in. He mentions that we could offer you a free showcase for any domain of your choice since all that happened was no fault of yours, but due to negligence on our side. "

Although I've strongly argued that they should waive their commission in this case they won't budge - even though I've offered to meet them halfway and pay half the commission on this deal.

Currently considering whether to swallow it and take a £5k sale on a domain sedo has appraised at £11.5k given that they prevented me from responding to a potential bidder within a reasonable time frame.

Meanwhile the buyer's money is sitting in their escrow account and I bet they haven't explained the delay to them!

I think the response from Sedo and one of its directors sums up the company nicely.

How easy would it have been to waive the commission on just this one sale? Unbelievable, they really are.

I had the same problem when short changed on a domain sale. I was out of pocket by about £20, but only because Sedo changed euros into pounds and then back to euros for no good reason - then blamed it on "bank charges". My bank told me that there had been no such charges.

I'm not the only one to fall foul of Sedo's bank charges wheeze so I too moved all my parked names from Sedo to Namedrive.

Not a huge sum I know, but it's the principle - and the way Sedo then cling on to every penny as if there lives depended on them rather than offering CUSTOMER SERVICE.

A few domains were left behind because they were left out the mass transfer and I've had offers on them, but I would never sell through Sedo again. Wouldn't like to see them earning any commission for the sale.

Even funnier, I had an email from Sedo UK asking for my help on a project some months later. I told them that following the bank wheeze I was no longer active on Sedo. I got a reply basically saying, "sorry I didn't know that, but could you still help?" :-D

Aye right. GTF.
 
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UPDATE:

Me: "OK please leave it with me while I take advice on whether to cancel the auction or not on this basis. Thanks."

Note that from the outset I made it clear that I was only prepared to continue the transaction process on the basis that I was compensated appropriately for their performance failure.

Their response and what appears to be a thinly veiled threat or maybe just a language problem:

"I will not advice that we cancel the transfer at this point as the previous occurrences was not his fault. Also, because this is binding contract.

I hope you understand where I'm coming from.
"

Me "I strongly sympathise with the buyer in this situation. However, I am simply not satisfied with Sedo's performance in this matter.

Sedo have rightly admitted professional negligence in this case ("all that happened was no fault of yours, but due to negligence on our side") and despite concessions on my part (to meet you half way on the fees), your offer of approx £25 compensation on a £5.6k transaction (and a domain you have yourselves valued at £11.5k) is simply not commensurate with the loss of business I believe I have suffered as a result of your failure to moderate my response to an interested party or to prioritize my repeated customer service requests during the auction process.

As I have made clear on several occasions during the course of our dialogue, as a result of these failings and of this negligence, I do not recognise the validity of the auction and do not believe your sales contract is binding.

While I am prepared to continue with the transfer if Sedo takes my complaint seriously and offers fair compensation for its failures in this case (why on earth you think I should pay your full fee in light of this is beyond me), I am ready to seek legal advice on the validity of your sales contract and on the damages I might reasonably claim from pursuing this matter if necessary.

Might I suggest that the "director" responsible for making the decisions at your end contacts me with a view to resolving this amicably.

I hope my position is clear.
"

That's all folks ... though I may post a message on the homepage of the site in question with a link to this thread for the benefit of the buyer ...
 
It's under German law. So if you've got cross border transactions then you've got nothing "binding".
 
I am advised that I do have a strong case so I'm not too worried, but I don't want to get into the validity of Sedo's general process (though it seems somewhat flawed in some areas IMHO) and I'm certainly not here to dispute an auction because I don't like the result.

All I expect from a service of this nature is a level playing field - which isn't the case when the referee takes the ball home halfway through the game and doesn't answer his phone until it's over.
 
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There should be no hassle where Sedo is concerned, no money has passed either way between you and them for their services, so no duty of care exists in relation to this from either party!
 
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