This feature will randomly drop the price of buy now only auctions that have not sold. The amount of reduction will be automatic also. But you can constrain the range of time before a price-drop as well as the amount of the price-drop. You additionally have the option to reduce the price of the buy now only price to that of the minimum price set for the auction by the time the auction expires.

To use this feature in your site you must first install and enable the Price Drop Auction addon within the following admin tool:

ADDONS > MANAGE ADDONS

Once done you will see a price drop configuration tool here in the admin tool:

ADDONS > PRICE DROP AUCTIONS > CONFIGURATION

That admin tool will look like:

Within that screenshot you'll see:

1. These two configuration settings determine the minimum and maximum range in hours between one price drop and the next price drop. So to start considering a price drop to a buy now only auction 10 hours after the previous price drop set the "at least" value to 10. To set a max amount of time after the last price drop before the next price drop of 30 hours set the "at most" value to 30. Given those two configurations, a price drop could happen between 10 and 30 hours after the last price drop. Note you can set this value to very narrow to make sure the price drop happens in very narrow time bands.
2. These two configuration setting determine the minimum and maximum price drop percentage of each price drop. To set a minimum 5% price drop set the "at least" value here to be 5. To set the maximum percentage allowed for each price drop to 20 set the "at most" value to 20. You can set this range to be very narrow to make each price drop very uniform.
3. Check this box to make sure the final price before closing reaches the minimum price set when placing the auction.
4. Once all is set the way you wish click save the commit your changes.

Given the above examples used a price drop would happen between 10 and 30 hours after placement or the last price drop. That percentage of price drop to the current value would be between 5% and 20%.

If price drop auction feature is enabled the client will possibly see the options illustrated below based on your admin tool configuration:

Within that screenshot you'll see:

1. To use the price drop feature choose the "standard" auction type
2. Set a buy now price
3. Check the "check if buy now only" checkbox
4. This option allows the client to choose the price drop option. If chosen the price will drop according to the parameters set within the price drop admin tool described above.
5. If you as the admin have also checked the "drcrease by an amount based on listing duration, so that the minimum price is always reached" option this option will appear to the seller placing their auction. If they set a minimum price here the price will drop to the minimum amount set here by the end of the auction duration set above and no lower.