Wednesday, January 30, 2008

Reader Mail about eBay's Feedback Changes

Here's a sampling of mail I've received (names edited out) about eBay's new feedback policies.  The majority are against the new policy of sellers no longer being able to leave negative or neutrals. I did receive one letter in support of the change. To wit:



  " New feedback rules - hmmmm.  Well, I have been saying for months that eBay is concerned only with name-brand sellers and buyers.  They have just proved it.  If some idiot of a buyer (and they are legion) messes with me, I can't do anything about it.  No negative feedback can I leave for the poor little snot.  How can buyers warn each other about poor customers?   In a word - we can't.  I am disheartened but not surprised.  eBay's latest shot at independent sellers will certainly speed up my search for an alternative auction site.



"I was also thinking (I think a lot, to my detriment, I add) that few
companies in this country seem to be 'in it' for the long run.  Open a
business, make a lot of noise, make as much money as you can then sell it off
when you have almost killed it.  Perhaps I am just cynical."



~~



"Hi Julia - sorry this is a little long.





I
was just about to jump back on the eBay selling wagon in a very small
way after stopping late last year to concentrate on something
else. Then come the announcements about not being able to leave
negative feedback for buyers and the fee changes. The fee changes may
be better for me or not but I'm not even going to look into it because
the other news is far more important.





We
are now left at the mercy of eBay effectively trying to police the
buyers but anyone who's experienced their past wall-of-silence approach
to customers isn't going to be too happy about that. The Unpaid Item
Process worked fine for me in the past and I don't see that any of
their increased 'protection' measures for sellers will actually do
anything to protect sellers. And who exactly are these sellers that
have been asking for these measures for a long time? I particularly
love this "For sellers with an established track record, we'll prevent
negative and neutral feedback within 3 days of listing end to promote
communication." What? How exactly is that going to help? Maybe I'm
missing some point here but some items won't even have arrived, some
won't even have been sent and I've had email and phone discussions
weeks or more after a sale. I feel I like maybe I've really
misunderstood the point of that one or I can't help feeling they were
trying to pad out the information.





I
think that once more they're hurting the small sellers who used to make
up their 'core' business that Meg was fond of getting back too,
apparently.





Also
... I'm sure you're an eBay affiliate too and they've just increased
those commissions. It reminds me of the early days of mobile phones
here in the UK when all the networks were giving tons away for free in
a numbers race. This seems like some warped (or reverse) version of
that. It's like people (buyers and sellers) are leaving in droves and
so they're trying to tempt the buyers back (at the expense of a lot of
small sellers) and drum up new business. I wonder if they'll advertise
that you can't leave neg feedback to a buyer to any new sellers? I
think not!





I've
never wanted to add my name to the 'eBay is doomed' list but who
knows. I hope I'm wrong but I can only see myself spending the ten quid
they've given me to entice me back and then using eBay in a very
sporadic way. Pity cos I did enjoy selling on eBay, wonder what the
eBid experience is like?"

~~

Here is the letter in support of eBay's new policy:

"Dear Julia,

"I read your announcement about eBay's feedback change with interest. I have been hoping for a change ever since I have was introduced to eBay and its feedback a few years ago. I grew up in Amazonland, and in Naderland, too, so the concept of sellers giving feedback to buyers was strange to me. What is a buyer's obligation anyway? To pay! It seems bizarre that people should get high fives and hurrahs for this simple act of commerce.

"More importantly it has been my experience that sellers feedbacking buyers had made eBay a place where people are afraid to say what they think. I know I am. My experiences with giving negative feedback were these: after trying to contact a seller to no avail, I gave them negative feedback. I was barred from bidding on this seller's auctions. I had spent hundreds of dollars there. What was this but feedback manipulation?

"Another did not respond to my concerns, so I gave her negative feedback. She had sent a book wrapped in grocery bag paper and the book was damaged. I asked for a partial refund. She gave me not just a negative, but a negative with vitriol. My perfect feedback record was ruined. For what? For making a customer service complaint to a non-responsive seller! Isn't that the purpose of feedback in the first place?

"Now, I never give negative feedback. Who knows what's going to happen with the (potential) lunatic on the other end of the sale? When sellers whose practices fall short ask me for positive feedback, I tell them I won't give them any feedback and tell them why. It falls on deaf ears mostly, but a few have thanked me.

"I am both a buyer and a seller, like you. This change may not be perfect but it was bound to come. eBay is too wild and wooly, and it had to be tamed. I am old school in certain ways, I like the "customer is always right," approach in many ways. Unfortunately, on eBay the customer has been too often wrong. Just look at some of the feedback comments, sellers calling customers "stupid, fools, idiots."

"It had to stop, and a large slice (though probably a minority) of sellers brought this on the rest."





More Feedback Responses from eBay

I was sent an email that one eBay received after a followup to a question about the new feedback policy where sellers can no longer leave  negative feedback for buyers:



"Thank you for writing eBay in regard to your eBay
account.



"The current feedback system will be changed to a new system in
May. The reasoning behind these changes are:



"1. Current system is
not adequately achieving a primary intent because ts transparency makes
some members reluctant to hold others  accountable. Buyers fear Retaliatory
feedback!



"2. Buyers who receive negative feedback are more likely to leave
the site more then any other reason.  (Including Item not received or item
not described disputes).  We want to Retain Buyers to the site.



"3. We
will continue to evolve eBay's public and Private feedback system as
Community makeup and marketplace dynamics evolve.  4. 50% of Sellers have a
10% feedback, 80% of Sellers have a 99.3% and above. The old feedback system
is not adequate to differentiate Sellers.  Our primary objective with
feedback is for Buyers to be able to accurately assess Sellers.



"Plus, nothing good comes from unfairly criticizing a buyer publicly. And
frankly, I can?t think of another successful ecommerce business or
retailer where the customer isn?t always right (at least publicly).



"If your buyer has failed to pay for an item, you should file an Unpaid
Item (UPI) claim. If the buyer fails to respond to the UPI report, then
any negative or neutral Feedback they have left for the particular
transaction will be removed. If the buyer shows a pattern of such
behavior and is suspended for UPI, all negative or neutral Feedback they
left will be removed.



"Sellers should only file a UPI claim when a
buyer did not pay. Filing false UPI claims is a violation of eBay policy and
may result in seller suspension.



"If a buyer threatens negative
Feedback to demand more than what was promised in the item description (for
example, the person wants overnight delivery but only paid for standard
delivery), the seller should immediately report the buyer to eBay. If there
is clear evidence of extortion, eBay will take action. Buyers who show a
pattern of such behavior will be suspended. If a buyer is suspended, any
negative or neutral Feedback they left for others will be automatically
removed.



"Sellers should only file these complaints when a buyer asks for
more than what is promised in the listing. Filing a false claim is a
violation of eBay policy and may result in seller suspension.



"The
change in the Feedback system is designed to improve the eBay marketplace
which should benefit both buyers and sellers. Improving the Feedback system
should increase buyers' confidence making them trust sellers more.



"we appreciate your feedback on the changes, and we will pass your
concerns along.



"It is my pleasure to assist you. Thank you for
choosing eBay."







What one eBayer Got When Emailing eBay about New Feedback Policy

I thought I'd share the email (anonymously) one eBayer got when they complained via email to ebay about its new policy of sellers not being allowed to give negatives to buyers:



"Dear [name deleted],



Thank you for writing eBay in regard to your eBay account.



The current
feedback system will be changed to a new system in May. The
reasoning behind
these changes are:



1. Current system is not adequately achieving a
primary intent because
its transparency makes some members reluctant to hold
others
accountable. Buyers fear Retaliatory feedback!
2. Buyers who
receive negative feedback are more likely to leave the
site more then any
other reason. (Including Item not received or item
not described disputes).
We want to Retain Buyers to the site.
3. We will continue to evolve eBay's
public and Private feedback system
as Community makeup and marketplace
dynamics evolve.
4. 50% of Sellers have a 10% feedback, 80% of Sellers have
a 99.3% and
above. The old feedback system is not adequate to differentiate
Sellers.
Our primary objective with feedback is for Buyers to be able to

accurately assess Sellers.



Plus, nothing good comes from unfairly
criticizing a buyer publicly. And
frankly, I can?t think of another
successful ecommerce business or
retailer where the customer isn?t always
right (at least publicly).



If your buyer has failed to pay for an item,
you should file an Unpaid
Item (UPI) claim. If the buyer fails to respond to
the UPI report, then
any negative or neutral Feedback they have left for the
particular
transaction will be removed. If the buyer shows a pattern of such

behavior and is suspended for UPI, all negative or neutral Feedback they

left will be removed.



Sellers should only file a UPI claim when a
buyer did not pay. Filing
false UPI claims is a violation of eBay policy and
may result in seller
suspension.



If a buyer threatens negative
Feedback to demand more than what was
promised in the item description (for
example, the person wants
overnight delivery but only paid for standard
delivery), the seller
should immediately report the buyer to eBay. If there
is clear evidence
of extortion, eBay will take action. Buyers who show a
pattern of such
behavior will be suspended. If a buyer is suspended, any
negative or
neutral Feedback they left for others will be automatically
removed.



Sellers should only file these complaints when a buyer asks for
more
than what is promised in the listing. Filing a false claim is a

violation of eBay policy and may result in seller suspension.



The
change in the Feedback system is designed to improve the eBay
marketplace
which should benefit both buyers and sellers. Improving the
Feedback system
should increase buyers' confidence making them trust
sellers more.



we appreciate your feedback on the changes, and we will pass your

concerns along.



It is my pleasure to assist you. Thank you for
choosing eBay.



Sincerely,
xxxx"



Monday, January 28, 2008

eBay Sellers Can No Longer Leave Negative or Neutral Feedback: Come on People!



OK, wow. I don't always blog about the eBay News right away, but this one I could not pass up. I couldn't believe it when I read it: nestled cozily among eBay's various fee changes (some of which I think are a good idea), was this little gem:



"Sellers may only leave positive feedback for buyers (at the seller's option)."



Wow again. OK, I really try to be fair and objective when writing about eBay. I am not only an ebay seller, but a frequent buyer, and a shareholder. So I understand they are running a business and want to succeed. And they see the buyer experience as bad now, or in need of fixing.



But this? To quote Bill Cosby, Come on, people.



I do need to think this one through more...but right now my gut reaction is that this is way overboard.  To not let sellers, the people who are the backbone of eBay's business, who provide the cake inside the icing that is eBay's framework, have a say in feedback is just unfair.



I'll paste the details of the feedback part of the announcement below, in case you want to read it. I know they're concerned about retaliatory feedback. But I'm not sure this is the way to solve it. I'm going to think about that one.



But this way, I feel that buyers (not all buyers of course, most of mine are great, but in any group you get a few problematic people) will essentially be able to hijack sellers into jumping through all kinds of hoops, and will in some cases leave negatives that are way undeserved.



Here's just one example of how this could play out: a Buyer asks a seller to sell something at auction to him right away. "Can you put a buy it now on this?" Seller says no; they want it to run its course in the auction.



Buyer then promptly goes and bids on something else the seller is offering..maybe something cheap. The threat of a negative now hangs over the seller's head. And maybe it gets left for some reason.



What reason? Who cares? Feedbacks are inherently subjective and buyers could make up any reason.



"Package smelled bad.." Neg.  "Slow shipping." (Let's say they bought media mail and don't know it takes up to 10 days or more).  Neg.  "I don't like your packing peanuts." Neg.



OK, well, as I said, I need to think this through more. Maybe I need to live with the news system to really make up my mind. But most likely the almighty dollar will decide this anyway. If sellers leave eBay in droves, I think they'd rethink it. If they grumble, then go about their business and most of them stay on eBay, it will probably remain.



Details from the announcement about feedback below. Meantime, I'd love to hear what you think! Post a comment here if you have an opinion.



--



"I know this is a huge change, but we're also putting into place
protections that sellers have wanted for years. In addition to holding
buyers accountable via non-public seller reporting tools, such as
Unpaid Item reports, we are planning a number of other Seller
Protections against inaccurate feedback:



 



  • We will remove, not just de-score, negative and neutral feedback when a buyer doesn't respond to the Unpaid Item process


  • We will remove all negative and neutral feedback and comments when a buyer (or seller) is suspended. We
    will also do this retroactively ? which means any negatives and
    neutrals you've received from members we've ever suspended will be
    removed.


  • For sellers with an established track record, we'll prevent negative and neutral feedback within 3 days of listing end to promote communication.


  • We're going to reduce the number of days a member can leave feedback from 90 to 60 days.


  • We'll increase block bidder list capacity from 1,000 to 5,000 user IDs.


  • We'll increase our monitoring, and take action based on seller reports of buyers behaving very badly.


  • Feedback percentage will be based on the last 12 months,
    although the total count remains lifetime. This means that any negative
    or neutral feedback left for you more than 12 months ago will no longer
    affect your percent positive.




For more details, please see our information page."



Repeat Feedback Credit..." [I am not posting the bit about repeat Feedback credit here; pls. see eBay's announcement if you want to read about that.]



Another Really Stupid eBay Spoof Spam Email

The eBay spoof email spam of the day: today I received an email with this subject line: "You've received an answer to your question about item 50 Acre island in South
Pacific."  Click into the email and it's a fake response to an "ask seller a question" I never asked:







Dear
julia wilkinson,


Please make up your mind, or i will report you
as a non paying bidder!
John

Do a mouseover on the embedded link, and you can see it links to an url with a redirect. Even the first part of the url looks legit. But if you look closely the rest of the url is a scam.



Just remember to mouse over these urls if you're ever not sure if it's legit. In this case, the subject line looked off, too.



Sunday, January 27, 2008

The End of the Meg Era at eBay as We Wait for Fee Changes

As you probably heard in the news this week, Meg Whitman announced she will be stepping down as CEO of eBay. Her supposedly hand-picked successor, John Donahoe, will replace her as CEO. Donahoe, incidentally, worked with Whitman at Bain & Co., a firm where presidential candidate Mitt Romney was CEO, Romney having founded Bain Capital, the private equity co.  (There's been some talk of Meg being made secretary of commerce if Romney wins).



"Dogged by slowing momentum on its flagship auction site, eBay is trying to reinvigorate its oldest and most lucrative business, which allows individuals to sell items online to the highest bidder or at a fixed price. Mr. Donahoe, 47, has spent the last three years wrestling with this problem and could make more drastic changes as he assumes the helm," wrote Mylene Mangalindan in The Wall Street Journal on Tues Jan 24 2008.



eBay is also about to announce fee changes this week:  "In the next few weeks, eBay plans to reduce the fee it charges merchants to list a product for sale and will increase the fee it collects when a sale closes," according to the article.



The thing that worries me about Donahoe is that he compared eBay to a "flea market" -- and this in a negative way: "A year ago, we had 14 per cent of global e-commerce, we're the largest e-commerce provider, and our home page still looks like a flea market," he says. "The world around us had changed. In particular our buyers' experience hadn't kept up."



Well, if he has a big problem with a lot of the type of stuff on eBay -- the antiques, collectibles, even the funky and the weird -- maybe especially the funky and the weird -- he may have a problem with what I think makes eBay special.  It's the place where you can find stuff you can't find anywhere else. I don't think that's a bad thing, though granted,  the term "flea market" probably has one of the most negative connotations of all the offline businesses eBay could be compared to.



However, if he was instead critiquing the design of the site, maybe I am being too harsh here.  I guess time will tell.



One thing that we do know is eBay is going to jack up the sales commission on auctions, although they will be reducing listing fees. Which, I don't know..may not be so bad. Well, let's not get too excited.



One reason eBay is doing this is they are evidently not making the money on auction fees they used to, because the proportion of fixed-price listings vs. auction listings has gone up:  "...auctions, while still the largest part of its business, are no longer so dominant,"  according to one article.  "In the past three years, fixed-price sales have risen from 28 to 41 per cent of the total," Mr Donahoe has said.



"To adjust, Ebay is looking at moving away from its traditional initial listing fees and instead taking a bigger commission on a sale."



Would I rather see higher final sales commission from eBay than higher listing fees? I don't know that I can answer that until I deal with it.  My sense is the listing fees going up would be more painful, so if they have to raise something it's better that the do it the way they're planning...to up the commissions. Not that I'd be happy about paying more to eBay. (Which begs the question, will the reduction in listing fees make up for the sales commission increase? This is of course going to vary from seller to seller.).



But that is not to say it's going to be a success. How all this will play out, how sellers will react, whether some will actually up and leave, or maybe they will suck it up and find it preferable to listing fee hikes, remains to be seen.



Meantime, if you have thoughts, please email me at juliawilk@aol.com or post a comment here on my  blog. I'd love to hear your opinion.



Oh yes..a few more not inconsequential things: according to the WSJ piece, "Rajiv Dutta, president of PayPal, will succeed Mr. Donahoe as president of the auction business and will join eBay's board. Bill Cobb, president of eBay's North America business, is retiring at the end of the year. Scott Thompson, PayPal's chief technology officer, will become president of PayPal."



I think Dutta in that job will be a good thing. I was impressed with him at the last eBay Live convention when he talked about PayPal. I also will miss Cobb and his affable speeches at the conventions. He would say in many cases that eBay was going to look at things and take suggestions away from the sellers at the conventions. He was also not afraid to admit when eBay was wrong. I do wish he'd given us more Stores presence, but we all know Stores don't make eBay as much money. Finally, I enjoyed the fact that he was also a Monkees fan, like me. And I'll always appreciate him giving us Davy Jones as entertainment.



Davyjonesebay



Monday, January 14, 2008

Facebook Founder Mark Zuckerberg's Poker Face on 60 Minutes

I made everyone around me be quiet when Facebook founder Mark Zuckerberg was featured by 60 Minutes last Sunday. "What's wrong with him?" asked my baffled cousin, who is a generation older than I and not familiar with the hugely popular Internet social and business networking site facebook.



Markz2_2






Leslie Stahl made the point that he can be less than engaging. But on the other hand, when she confronts him with statements such as (I am paraphrasing here) "They say you are the big new thing in Silicon Valley" and "You have replaced the Google guys," what is he supposed to say?



"Is there a question in there somewhere?" he asks, reasonably, after giving her a straight face for a few uncomfortable seconds. You have to laugh.



The "bigger than Google" comment was explained by saying that some say facebook will be the first place people go on the Internet, a dashboard as it were. Which may be true. It's certainly a place a go a lot, and not always to get much done.



But I think comparing it to Google is really apples and oranges.



Still, the most interesting part of the interview was Zuckerberg talking calmly about how they will keep trying ads til they get it right, not seeming too flustered by the problems they had when their Beacon ad program famously went awry and that guy's diamon ring purchase was broadcast to everyone on Earth and some folks on Saturn.



I do hope they get the ad thing right, because I personally would like to advertise my ebooks on facebook.



He also said he did not believe the company would go public in 2008. Oh, and I enjoyed it when he said he lives in a modest one bedroom apartment.



Stay tuned for what happens with facebook...it is sure to be interesting.



Tuesday, January 1, 2008

New Stuff added to JuliasAuctionLinks.com

Happy New Year, all!



I'm ringing in the new year by updating my Julia's Auction Links site, among other things (www.juliasauctionlinks.com). New auction sites like Likeits1999.com and blogs like thesellerevangelist have been added (www.sellerevangelist.blogspot.com). And more will be added soon.



I'll also be cross- posting here the lastest issue of my Yard Salers newsletter, where we talked about a myriad of things such as media mail and other shipping strategies, and the Magna Carta.  (You know, that thing that recently sold for 20 mill or so).



Have a great 2008!



New Stuff added to JuliasAuctionLinks.com

Happy New Year, all!



I'm ringing in the new year by updating my Julia's Auction Links site, among other things (www.juliasauctionlinks.com). New auction sites like Likeits1999.com and blogs like thesellerevangelist have been added (www.sellerevangelist.blogspot.com). And more will be added soon.



I'll also be cross- posting here the lastest issue of my Yard Salers newsletter, where we talked about a myriad of things such as media mail and other shipping strategies, and the Magna Carta.  (You know, that thing that recently sold for 20 mill or so).



Have a great 2008!