Friday, April 11th, 2008

PeSA / ECMTA Best Practices “Improving Your eBay DSRs”

PeSA / ECMTA Best Practices - Improving Your eBay DSRs

I realize I run the risk of turning this blog into a Marketplaces-only forum rather than an all-encompassing discussion hub for all things “Inc”, but I am joining Lorrie Norrington and the team down at the 2008 Spring eCommerce Summit in New Orleans later this month so I thought it would be a good idea for me to sit in on the PeSA / ECMTA Best Practices conference call yesterday afternoon. The topic of discussion was “Improving Your eBay DSR” and the call was hosted by Brandon Dupsky, managing director of eCommerce Markets for the E-Commerce Merchants Trade Association (ECMTA).

The call was interesting in that it didn’t focus on the perceived benefits or drawbacks to the Detailed Seller Rating (DSR) system, rather it focused on the challenges sellers face with DSRs and how to implement some best practices around that. It seemed to go beyond DSR 101 (one participant at the end of the call indicated that she found it one of the more worthwhile roundtable calls she had attended).

After Brandon provided a brief overview of what DSRs are and why they’re important he jumped into the meat of the presentation. He cited three key challenges that sellers face with DSRs:

1. Mixed messages from eBay. There is a message to buyers that states that 4.0 should be applied to an experience in which there was an “accurate” description; they were “satisfied” with communication; shipping was “quick” and S&H was “reasonable”. However, the message to the seller is that 4.0 means you can’t qualify for PowerSeller status; you don’t get good seller status; you could drop down into the bottom 1% in your category and receive seller restrictions.

2. A mixed usage of whole numbers and fractions with regard to scores. In other words, a buyer can only leave a 1, 2,3 4, or 5 feedback score and as a result, sellers are “being punished” with fractional scores of 4.0, 4.4, 4.6, 4.8.

3. Good DSR scores have less of an impact on sellers than bad DSR scores. A single 5-star DSR will not help the overall average as much as a single 1-star DSR will hurt the overall average.

The proceeding ways in which it was suggested sellers could ensure that they get the best DSRs possible all had an underlying theme. Educating the buyer with impeccable messaging and setting their expectations from the beginning seemed to be the biggest call to action to sellers (which echoed a Chatter Blog post back in February). Based on presentations and discussions I’ve seen and heard internally, that seems to be the call to action for the Marketplaces team too. Yes, the changes we’ve seen come out over the past few months are focused on providing the best overall experience for the buyer on eBay but it is the education and the ability to meet and beat the expectations of the buyer that will result in optimal DSRs.

There were a number of simple tricks and tools discussed on the call. For example, emphasizing 5-Star service in every step of communication to the buyer or potential buyer. Another was setting expectations and then beating them (whether it be regarding shipping cost, time or description of item).

The number one question that seemed to be asked throughout the presentation was “What are you doing to keep your customer happy?”

For those of you still on the fence about attending the conference later this month, the ECMTA has put together this handy-dandy Top 10 Reasons to attend. If you are heading down there, feel free to email me because I’d love to take the opportunity to meet as many people as I can in person.

Cheers,
RBH

Tagged: best practices, brandon+dupsky, chatter, chatter blog, dsr, ebay, ecmta, ecommerce, lorrie+norrington, marketplaces, pesa, rating, trade show

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113 Responses on this post. Click to add yours.

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JewelrySellerOn 04.24.2008 at 9:38 am Said:

So, eBay has begun outside the USA to require ONLY PayPal for purchases.

And the implication was made that this requirement would soon be imposed in the USA also.

And it appears that eBay is actively encouraging that all sellers use ‘free shipping’ at a time that oil prices are triggering increases from all shippers, including the USPS. Will this ‘free shipping’ change to an eBay requirement in the near future?

These changes don’t negatively impact eBay’s Cost of Doing Business. But they dramatically impact the Seller’s net profits. (seems to be the new eBay paradigm, page borrowed from WalMart)

JewelrySellerOn 04.24.2008 at 10:02 am Said:

@oakteak

Everyone mentions that eBay wants major sellers and wants retail. I keep thinking, “why would a major retail seller need eBay?

Don’t think of eBay (or the coming ‘new’ eBay) as the old eBay you knew. Look at its ‘resources’ and ‘assets’, thinking of other ways they can be used without any allegiance to how things have been done in the past.

Then look at the public statements of the executives, their experience and history, their ‘heroes’/teachers/advisers. Successful military commanders study their enemies’ styles, strengths and weaknesses before doing battle with them. Successful business leaders do the same.

All sellers want the ‘eyes’ of potential buyers. If eBay buyer stats look good to major retailers (and Donahoe cuts prices to lure major sellers so they will post on eBay) a business case can be made. (No, the retailers would not drop their own standalone sites or other places where their products are sold.) This would be incremental business to retailers and to eBay.

Perhaps eBay will borrow a page from Amazon and begin to sell directly in selected product categories. eBay could contract out warehousing and fulfilment from the importers and manufacturers.

JewelrySellerOn 04.24.2008 at 10:23 am Said:

@IMPLOG

About Donahoe and WalMart -

No, I didn’t do a reporter’s job of Googling Donahoe’s credentials. I saw an article reporting his association with WalMart and took it to be factual.

Your comments about the eBay environment ‘resonated’ with me.

I’ve been viewing changes within eBay, looking for what must be their planned outcomes, then the ‘why’ behind what is being done.

I’m still confused why eBay has allowed the dis-mantling of a means to report fraudulent mis-representation in seller postings. I tried to report a Chinese seller of glass jewelry purported to be ‘emeralds, rubies, sapphires, diamonds’.

What used to be in place, complete with a text area to describe the violation, had been dismantled in the USA and the UK. Parts of the ’system’ defaulted to exit eBay so I could post for a refund on PayPal, but not report the seller to eBay!

JewelrySellerOn 04.24.2008 at 11:26 am Said:

So, this is supposed to be a discussion thread about how to ‘improve your eBay DSRs’

I’ll provide a few snippets -

A. We don’t know which company came up with this 5 Star rating of sellers in the first place. It wasn’t eBay.

We bought a book on Amazon. The seller included a note, with cartoon, talking about the buyer ‘having the power of good or evil’ in his hands and Amazon’s 1 to 5 Star rating program.

He has some very good points to make. And he faces penalties from Amazon for rating scores of less than 5 Stars. He wrote this note and includes it with every shipment he makes.

As all sellers know, many buyers don’t leave feedback.

I agree with the comment - if eBay asks the buyer to do more, answer more questions, etc., many buyers will decide not to be bothered by the whole feedback task.

But, since including a note about Feedback with my last 3 weeks of shipments, I can see an increase in buyer feedback and a higher percentage of buyers filling out the STARS part of the DSR. Thank you buyers.

If you haven’t written some kind of note about Feedback to include with your shipments, I strongly suggest that you consider doing it - even if you aren’t a Power Seller yet.

B.It appears that -
1. You must tell buyers about the DSR scores and how it affects your business
2. You must be prepared for the possibility of a disgruntled buyer leaving less than 5 feedback, even if you did everything possible
3. You must be cautious about accepting export sales to at least some countries, if not refusing all export business.
4. You must sell less expensive merchandise to more people so you can increase your overall sales volume across more transactions and lessen the potential impact of any less than ‘perfect 5′ feedback score.
5. eBay plans to drop at least 20% to 33% of all PowerSellers.
6. You might consider refusing the business of eBay ‘newbies’ who might leave you low feedback (because they don’t know any better)
7. You have no protection against the occasional off-the-wall unreasonable buyer who potentially could seriously damage your business or blackmail you into doing ‘extra’ things to prevent the extortion the buyer suggests they might do if you don’t ’satisfy’ them.

Patricia 1On 04.24.2008 at 11:53 am Said:

@ JewelrySeller

“eBay plans to drop at least 20% to 33% of all PowerSellers”

What proof do you have of this? I’m not a powerseller - just curious as to where that info might have been obtained.

JewelrySellerOn 04.24.2008 at 1:09 pm Said:

@PATRICIA1

You asked for proof about ‘eBay plans to drop at least 20% to 33% of all PowerSellers’

SOURCE - The PeSA Feb 5th conference call with eBay Execs (Jim Ambach, Brian Burke & others) discussing DSRs

How was a determination made of what DSR numbers would qualify for a PowerSeller discount?

The PowerSellers 12 MONTH DSRs were reviewed by eBay management. We are told -

About 80% of all PowerSellers attained a 4.5 DSR over the last 12 months

About 60% of all PowerSellers attained a 4.6 DSR over the last 12 months

About 15% of all PowerSellers attained a 4.8 DSR over the last 12 months

So a decision was made to judge PowerSeller DSR status over a period of only 30 days instead of retaining the 12 month running average.

A decision was made to drop any PowerSeller who had a DSR in any ONE of the FOUR categories below 4.5.

A decision was made to offer PowerSellers with a 4.6 DSR average or above for the prior 30 days, a discount of 5% on FVF for that month

A decision was made to offer PowerSellers with a 4.8 DSR average or above for the prior 30 days, a discount of 15% on FVF for that month

You must have at least 10 DSR scores averaging above 4.5 in each of the 4 categories every 30 days to keep your PowerSeller status.

If you have 10-25 transactions per month, you will be more damaged by only 1 buyer who gives you a lower than ‘perfect 5′ DSR score in 1 category.

And, eBay plans to eliminate the 20% of PowerSellers who cannot/have not maintained at least a 4.5 DSR. As well as eliminate any PowerSeller who drops below a 4.5 DSR in any one category for any month.

This means that PowerSellers who have a business slow down for a month or two (like a recession or after Christmas slow down) or sellers of products that have seasonal demand will not retain their PowerSeller status.

The PowerSeller minimums were raised from $1,000/month to $1300/month and $3,000/month to $3300/month.

Unless I missed it, eBay has not told the community how a PowerSeller can regain their status if they have been dropped for having one DSR below 4.5.

Patricia 1On 04.24.2008 at 1:25 pm Said:

Thanks so much. I had not heard that before. Very interesting. I imagine most powersellers are probably miffed about it. Well, like I said, looks like they’re aiming to be a very poor imitation of Amazon. They want the profit but don’t want to put in the work i.e. customer service and respect for their customers. I’m still seeing failure.