In every issue, readers soundoff about issues important to them. From feedback to payment services, from increased fees to posting policies, AuctionBytes Soundoff gives you a chance to air your views.
You can also read the AuctionBytes blog, which has a place for reader comments under every posting
http://blog.auctionbytes.com).
In today's issue, we publish feedback we received on our recent Newsflash article about eBay's top sellers ranking poorly in terms of the detailed ratings left anonymously by their customers - most fell in the bottom 25 percent of all sellers for such ratings(http://www.auctionbytes.com/cab/abn/y08/m01/i02/s01).
People have also posted on the AuctionBytes blog about DSRs (http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/1/1199285206.html). One poster pointed out that the lowest averages were still above 4, questioning why that was seen as bad: "if you look at the tight range between the ratings of the best and worst, then overall I'd say buyers were pretty happy with the service."
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RE: "eBay's Top Sellers Perform Poorly on Feedback 2.0"
http://www.auctionbytes.com/cab/abn/y08/m01/i02/s01
Ina, Good article on eBay Feedback 2.0. One problem I have with Feedback 2.0 is that once a seller has accumulated a significant number of feedbacks, it's mathematically impossible to raise the criteria ratings except in the smallest of increments. For example, I currently have 913 S&H ratings since May '07 for a ratings of 4.7 (I'm not complaining here - all my other criteria ratings are 4.9). So, even if I have a 4.9 or perfect 5.0 on the next 913 ratings (not very likely), I'd only move up .1. Granted, the lower the current rating, the faster you could theoretically move up with perfect scores, but that's not likely to happen. That said, I have to confess that the lower S&H rating has made me re-think, and revise, some of my handling charges. And, I have found adding First Class Mail as a shipping option on smaller items that I previously only sent via Priority Mail has had a positive effect. Keep up the good work with AuctionBytes.
Jim
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RE: "eBay's Top Sellers Perform Poorly on Feedback 2.0"
http://www.auctionbytes.com/cab/abn/y08/m01/i02/s01
My Opinion: On this new seller ratings, after reading your article I agree with the sellers.
I think a buyer should not buy if they no like the cost of shipping and they should not buy it. What someone charges for shipping is how they do business. For example: shipping cost. Buyer think that a sellers time is worth nothing. A seller can higher out his employees to go and do the shipping for them. Buyers do not think of that.
Even if a seller does all his packing and shipping at home his time is worth nothing. What about the cost of gas, time waiting on line, and getting out the package... that is worth nothing too???
I had a buyer once tell me I charged him 95 cents more then the what the postage was on his package. I would love to know when he went to work how he would feel at the end of the week his employer said to him this week you are worth nothing and I am not paying you.
This system that ebay has set up is stupid... the buyers say wonderful things in the feedback then when given the opportunity go behind your back and give bad ratings on shipping etc. but say they are coming back and had a great experience.
I have a rating of 4.4 but the comments that are left do not indicate anything wrong.
It sounds like it is time for another site to take over the auction and selling world. If ebay top sellers are facing the same things I am ... they will feel the way I do.
But I think as time goes on the rating of everyone will go down and when that happens ebay can throw all of us off the site and then what? As the rating drop then what is ebay going to do??
ebay should drop their fees and care more about the sellers who provide all the fees; set up a guide like of reasonable shipping fees where they factor in a set amount... and with that reduce there fees in listings. They are outrageous and they are not bring in the buyers as they use to. How about the sellers anonymously rate ebay and their fees... but that will never happen.
Rena
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Regarding the second letter from last issue's "Letters from Readers" column, first a "PS" from the original writer, and then two letters from people offering their advice.
http://www.auctionbytes.com/cab/abu/y207/m12/abu0205/s08
A postscript from the original writer: "An added note: another reason why I don't want my address automatically listed on the ebay win notice is that I like to KNOW if people are mailing payment - that way I know it's coming and am on the lookout for it (not an easy job in this onslaught of holiday mail!) Just this week, I sent a follow-up to an auction winner I hadn't heard from in over a week - a bit disconcerting. Don't you know it, that afternoon their check showed up in the mail! Wish I had KNOWN they were sending a check - would have saved me the trouble of contacting them again, wondering why they hadn't paid etc. Sure wish ebay would not change their methods on a whim without any thought to the consequences."
Responses to original letter:
Good Morning from chilly "Big D"!!
Regarding the letter below, I am amazed at how many sellers use their home address and phone number for an internet business!!! For a small amount of money they can get either a post office box or a box at a UPS store or the equivalent (the advantage of a UPS store or the equivalent is that you can have an actual street address) to use as their business address. Also, they should look into a separate telephone number. If they don't want to invest in an additional telephone line, they should look into a telephone number overlay if it is available in their area. That means that you can get another telephone number but do not need another telephone line. The telephone company overlays the number over an existing line (one telephone line-two numbers) and many times can also put a distinctive ring on the second number.
As a seller on eBay I firmly believe that our buyers (who are spending their money on one of our items) definitely have the right to know our address and phone number - our BUSINESS address and phone number - not our home information.
Thanks,
Martha
and
Ina,
This letter-to-editor that you posted on Dec 16, 2007 caught my eye. You might suggest to this (unnamed) seller that s/he either rent a PO Box (if s/he only uses USPS for shipments) or rent a PMB box with any of the UPS stores, PakMail, or private mailbox services (better, since they can handle UPS, FedEx, DHL as well as USPS packages, coming and going) and give eBay THAT address instead of a home address. Secondly, s/he should change the phone number on file with eBay to either a cell phone, an unlisted number or a personalized ring number (also called a distinctive ring number) from the phone company which only costs around $5/mo. None of those three choices can be googled into disclosing one's home address. Altogether, that's more security than 90% of eBay sellers have set up, and should more than handle the small percentage of nutcases that arise to make life miserable for honest sellers.
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Hi Ina,
Seasons Greetings!!! I guess you heard about Bidpay suspending their services... I signed up with them as a welcome alternative to PayPal when I received your newsletter... Can you suggest any other on-line payment sites that I can use with eBay?
Best regards,
Keith
>From the Editor: AuctionBytes has a 3-page chart of online payment services (http://auctionbytes.com/cgi-bin/charts/chart.pl?Online_Payment_Services). Go to eBay's help page (http://pages.ebay.com/help/policies/accepted-payments-policy.html) and click on "Some Examples" to see what's allowed (and prohibited).
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Re: "Managing Chargebacks on PayPal"
http://www.thepaypalblog.com/weblog/2007/12/managing-charge.html
Dear Ina,
I had to laugh when I read Colin Rule's article on "Managing Chargebacks with PayPal." What Mr. Rule says is totally bogus. I am a gold power seller on Ebay and have been a member since 1999. I am going through a chargeback right now.
The Buyer admitted it was a mistake and he contacted his credit card company and PayPal to cancel the dispute. This has been going on for over a week now. I followed all of the safe business practices set forth by PayPal in order to be protected under their Seller Protection Policy. I only ship to confirmed addresses. PayPal told me since this dispute was initiated through the Buyer's credit card and not through them, the Seller's Protection Policy does NOT apply.
Even though the Buyer did contact PayPal and his credit card to cancel the dispute, it is PayPal who is dragging their feet again in refunding me, although they are blaming the credit card company.
So Sellers BEWARE! PayPal's Seller Protection Policy will not fully protect you against a credit card chargeback. Do not be misled by them when they tell you that you will be fully protected if you only ship to confirmed addresses. In the meantime, all you are doing is driving a lot of potential business away when you refuse to ship to another address other than the one confirmed with PayPal, in order to follow the directives set forth by PayPal! You will also suffer from a lot of unjustified feedback in Ebay, as well as non-paying buyers who refuse to pay if you will not ship to the address they want, even though you state these terms clearly in your auctions.
Jennifer
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Re: "Best eBay Innovation Has Rarely Worked Right"
http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2007/12/1198812095.html
Hi Ina,
I saw your blog topic today and while I have been plenty cynical of ebay maneuvers in the past, I would really like the marketplace to correct itself... I think criticism and feedback is great if it causes the right action. But I would never want to "discourage" ebay from innovating. Even if their programmers stink, and it takes a year to get it right, I am willing to absorb some amount of risk if the "goal" is greatness.
Perhaps you can compile some suggestions for them.
- Since eBay's fee structure design allows them to profit off of "cluttered listings", some of their site issues are solvable by slowly adjusting away from up front fee to back end. I suppose DSR is their attempt to do this.
- However by reducing fees slightly, that really doesn't solve the clutter/buyer experience issue. Is Finding 2.0 enough? My initial uses have not found it so intuitive to use.
- When they launched express, they envisioned a better buyer experience, but not enough buyers drank the new coke....so they needed to go backwards to the old coke. What level of listings was eBay "peak performing" at?
- There are not enough tools in the old coke for sellers to provide a better experience to buyers than they receive on Amazon. What are they coming out with that is going to revolutionize the ecosystem? Is ebay's international base better than Amazon? If so, stand behind that and allow sellers to globalize in a safe way.
- A better experience (for me) is a personalized one. I go to a gym because of the trainers, not because of the infrastructure.
You should be able to compile a number of great ideas for site suggestions so they can bounce back in 2008.
Thanks for listening,
Dan
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Ina,
I know you don't have the time to read them all, but this site contains a collection of the most insightful and perceptive Ebay user concerns I have ever seen. Some of these people are nuts and some of them are very sharp. I'm surprised Ebay hasn't taken the site down.
It starts off with an Ebay consultant (Bain) forecasting more Ebay changes, and then gives Ebay user responses. Wow, what an eyefull.
http://forums.ebay.com/db2/thread.jspa?threadID=2000484699&start=0
Ray
PS: I think Ebay could solve a lot of its problems by having an A & B selection button right off top. A for antiques, old stuff, flea market, collectibles, crafts, etc. and B for new stuff electronics, etc.
What a simple and customer pleasing device to instantly guide those looking for what the want to the auctions that interest them. I am very serious. I'd submit this to Ebay but there is no way a dumb, unwashed, member of the masses could every get a message to any decision maker at Ebay.
If you should agree with this very simple and doable concept, maybe you could use your influence to suggest this to the right person at Ebay. It could solve many of their problems and breath new life into the dying antique/collectible/craft market that Ebay has systematically dismantled and ruined.
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Re: "BidPay Abruptly Closes Online-Payment Service"
http://www.auctionbytes.com/cab/abn/y07/m12/i20/s02
Ina,
It's sad to see Bidpay leaving us out in the cold once again. We have used Bidpay on a daily basis for our international buyers and I am currently wondering what we will replace Bidpay with, and on top of that make sure that they new payment service should be a payment service that is not against eBay's policy.
Sam
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Good Morning,
Due to the type of items we generally sell we ship USPS 99.9% of the time. We use Endicia. On those occasions that I need an alternate shipping service I offer FEDEX since I have an account and receive a discount.
However, I had a buyer who specifically requested UPS so I thought that I would be a good seller and ship the requested way. In order to save him money and not have to pay the upcharges tacked on by paying for a UPS shipment at a UPS store I decided to take the plunge and use Paypal shipping for the UPS package (I had registered a UPS account number with Paypal previously so I was set to go). WHAT A MISTAKE. It has been nothing but headaches.
The first thing I did was go to the bulletin boards (Packaging & Shipping, Paypal and the Powerseller boards). There is no "sticky" topic at the top of any of those boards with instructions and hints as to glitches. Since yesterday was Christmas I set the ship date as December 26, 2007. When I received my email from Paypal it listed the ship date as December 31, 1969!!!! Imagine my surprise - so I voided the label and decided to wait until today to try again since I could leave the ship date as today (the one listed in the default). I went back to the item page on eBay and there was no choice to print a label even though the first one had been voided. So, I called Paypal and found out that I could go to the detail page of the item on Paypal and print from there. I followed the instructions and the ship date was set for today. Low and behold, when I got my confirmation email from Paypal it showed the ship date as December 31, 2007 !!! At least it got the year right this time.
Now I know that I can use the label and ship today since it's only the Paypal email that is incorrect. According to someone who responded to my help plea, this is a well known Paypal glitch. If this is a well known Paypal glitch, why isn't there a sticky notice at the top of the boards to notify people so that they don't tie up dollars voiding labels and having panic attacks when they see the wrong ship date on the Paypal confirmation emails???
Another hint that I got from someone answering my BB question is that if you try to print the shipping label on the two-part UPS labels by just hitting PRINT the label prints so that part of the shipping label is on BOTH labels on the sheet. You have to highlight the UPS shipping label, hit print and then select the PRINT SELECTION option. Why isn't this information in a sticky note at the top of the bulletin board page???
This may be my first and last time to use Paypal shipping.
WHEN YOU KNOW THAT YOU HAVE A PROBLEM WHY NOT ADMIT IT?? IF YOU KNOW THAT THERE ARE SOME GLITCHES WITH THE EMAILS OR SOME TRICKS TO PROPERLY PRINTING LABELS WHY NOT PUT THE INFORMATION IN A STICKY NOTE AT THE TOP OF THE BULLETING BOARDS????
Thanks for listening,
Martha
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Hello Ina -
I read a long submission from one of your readers regarding the difficulties he is encountering selling items that should be sold on eBay, but having trouble with the problems of eBay. He is selling specialized philatelic items. I wonder if he could try a "store" at GoAntiques, or one of the other virtual malls. He would be able to have his items scheduled for eBay listing under the GoAntiques umbrella, and he would only have to pay the commission if it sold. For a monthly subscription fee, he could have the opportunity to try out a different way of getting his items the eBay auction exposure he desires, without having the negative consequences.
I hope this might be of some help. Thank you for the wonderful service you provide.
Regards,
Carol
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Hi Ina,
Re: "New eBay Feature Encourages Local Marketing"
http://www.auctionbytes.com/cab/abn/y07/m12/i28/s03
It looks like eBay forgot to tell it's users to check their local ordinances for posting fliers ( i.e. Post No Bill Laws). Don't let them catch you in the acting of posting fliers in public in New York
http://query.nytimes.com/gst/fullpage.html?res=9D0CE3D91538F934A15751C0A967958260
Brian
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Hi Ina-
I love Auction Bytes, particularly your videos from ebay live. I was wondering if you have any past articles or data on how many items Amazon is shipping with Marketplace versus its own inventory. Thanks for any info.
Kevin
Hi Kevin,
Thanks. Great question. Latest SEC filing for 3rd quarter says:
"Sales of products by third-party sellers on our websites represented 32% and 30% of unit sales for Q3 2007 and Q3 2006, and 30% and 29% for the nine months ended September 30, 2007 and 2006. Since revenues from these sales are recorded as a net amount, they generally result in lower revenues but higher gross margin per unit. Since we focus on profit dollars rather than margins, we are largely neutral on whether an item is sold by us or by a third party. "
http://www.sec.gov/Archives/edgar/data/1018724/000119312507225370/d10q.htm
I did a google search, and this article from 2006 puts this in context:
http://www.iht.com/articles/2006/02/12/business/web.0212stross.php
"About 28 percent of Amazon's unit sales volume, for example, comes not from its own shelves, but from its third-party sellers. That side business is very profitable, said Jim Friedland, an analyst at SG Cowen & Company. Yet Mr. Friedland can only guess how much this business contributes to the company's bottom line, because Amazon does not say."
So you can see the number is growing - they are set to release 4th quarter and yearly results at the end of January.
Here's an article you might find interesting:
http://www.auctionbytes.com/cab/abn/y07/m05/i23/s01
Ina
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Re: "eBay UK Requires PayPal (for Certain Categories)"
http://www.auctionbytes.com/cab/abn/y07/m12/i24/s02
What a shock! Ebay requiring sellers use their own payment system? One that has been consistently proven an unsecure method of payment by the general public, as well as sellers and former employees alike?
But it's secure! Why? Because ebay says it is, and that's what matters. This isn't about truth, it's about their ability to restrict things to what they own, just like ebay as a site is even more secure than Ft Knox is. Again, it's because they say it is, not something based off of any independent study or anything. Shh!! We won't mention the lawsuits and the ripped off sellers. Paypal is more secure than anything out there! This is just another sad example of ebay flexing muscle and bullying sellers, rather than providing an open marketplace and proving the security of their network. What do they have to lose? Everything, of course, as there is nothing remotely secure about ebay, and I would highly doubt that ebay cares about protecting any interests but their bottom line, which is, of course, the underlying reason behind barring other payment types. If ebay focused less on International growth, and more on customer service and improving both the buying and selling experience, the growth that ebay holds so dear would come to them naturally, as opposed to providing short-term figures.
Any group can experience huge, but short bursts of membership growth, as can any business, a mailing list, forum, website, etc. However, the true key, to those who know, is in maintaining and sustaining the numbers consistently. I'm sure ebay does have massive growth, but how many people stay after one year? Two? More? Out of that number, how many are active buyers and sellers, meaning at least one purchase or sale every 30 days? That's what drives their margins, activity, not numbers. Stockholders need to be asking tough questions, such as that, and not simply be satisfied with their stock price increasing, because it's these questions that can make their prices grow further, or suggest it is time to sell.
Buyers and sellers need to be listened too, as well. Unfortunately, ebay is like the annoying kid who puts his fingers in his ears, singing, "I can't hear you" when it comes to what customers want.
It's clear that there are far more frustrated sellers and buyers than satisfied ones, as the NY Times article you reference here clearly displays.
So far, Google, the "Saviour" for many sellers (not me, personally) isn't doing anything I've heard of to threaten ebay, and I agree that I would not wish ebay upon Amazon, much less anyone I had even a modicum of respect for as a company.
Sadly enough, I, in my secret identity as Nostradamus, predict that the trend won't change and ebay will continue to post record profits while driving out long-time sellers and buyers, keeping only the scammers and casual sellers. I, too, started out on ebay full time, and rapidly realised that I can get far more money elsewhere and with less than half the hassle. Additionally, with web space as cheap as it is, I also predict more people opening up web stores, too.
I won't be as bold as predict ebay's downfall, but it wouldn't surprise me, either.
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Ina,
This story (linked from AuctionBytes today) fired up my puzzle-solving cells:
"....I've been ripped off. I sold an ipod on ebay, and the buyer paid via paypal. When he got it, he claimed that there was something else (a cheap tv remote) in the box, and filed a claim with PayPal. Paypal waited 40 days before deciding to give him his money back, after which ebay wouldn't allow me to get my seller fee back because it was past the 45 day mark.
The buyer got my ipod and got to keep his money. That shows me how easy it is to steal from people. All you have to do it say you didn't get the item promised and PayPal will do the rest."
Excerpted from:
http://blog.wired.com/business/2007/12/whats-up-at-eba.html
Because I've seen too many similar stories over the years, I'm thinking that for any high value item paid for using PayPal, there needs to be a verification kept on file of what was packed and shipped. It would seem that a description of the auctioned item needs to be pre-printed onto a form to be signed and dated by the shipping clerk who completes the packing job at whatever local service one might use. The form would need to indicate that the clerk has confirmed the item(s) that s/he packed, sealed and shipped, were in agreement with the description on that form.
In most cases, that should be a simple, quick look at the item, plus the signature.
Secondly, a sentence in the auction itself would need to explain that any item paid for using PayPal will have documentation on file of independent item confirmation during packing, sealing and shipping.
That is the first level of defense against a scamming buyer with item switching in mind. The second line of defense would be the actual signed form on hand, which could later be notarized if necessary in a PayPal challenge.
That approach would seem to both discourage the scammer up front, and provide ironclad evidence to PayPal in case the scammer persisted.
Does that make sense? I've never seen this solution discussed elsewhere.
Thanks for all you do, Ina.
Cordially,
name withheld by request
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I read your article and I think you need to follow it up with an expose on Paypal since you seemed to have touted it as being the best service to use. Paypal owns your money that you sell your items for, disburses it at their time line, and dips into YOUR money if a claim/dispute arises, always refunding the buyer his money despite concrete evidence that the buyer is a scam, damaged the item himself or says he never received an item even though you received a signature back from UPS for that delivered item. Paypal arbitrarily uses your money at their discretion saying who can be refunded even when you insist they seller is a scam or liar. Furthermore, they have raised their fees to exorbitant rates unnecessarily so, just because they can. Paypal collects money, for which they are paid a fee that they cream from the top, and then can also dip into your account to refund money to customers who complain. Who are they to dip into MY money? Who are they to arbitrate a claim settlement when they know nothing about the product or the situation? Paypal will admit that they know nothing about the product, nor that nothing is known by them about the situation of the claim, yet they will take money out of your account and send a refund to a customer without even notifying you prior to this action. They notify you OF the action of them refunding someone out of YOUR account, but nothing more.
This is what your follow up article should be about.
Karen
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Ina,
I was told that Ebay had published a HELP LINE 1-800-717-3229. That is not true. I called and it is "By Request Only". They could not/would not help me but said they would "walk me through" trying to resolve my problem online. The reason I called the helpline was I had spent 50 minutes trying to resolve my problem online and their absurd, "help questions" menu did not apply. (long story - won't bore you). Their online resolution system is designed to resolve "some" issues and frustrate the rest of us so we just finally give up. I finally just hung up on the "Helpline". So if anyone thinks that number is a helpline, don't waste your time.
