Tuesday, April 29th, 2008
John Donahoe Interviews Pierre Omidyar
Earlier this month, I referenced a conversation between John and Pierre that was webcast live to all eBay Inc employees during the first week of April. I have included three clips from their conversation below*.
The following clip shows Pierre addressing some of the recent changes in the Marketplace. He also addresses what he means by “a level playing field” and how it relates to the eBay experience…
In the following clip, John asks Pierre about interacting with the eBay community and gets his input on working with the buyers and sellers of eBay…
Finally, the following clip emphasizes the company’s focus on the Marketplace that has been echoed in recent interviews with John and on earnings calls. In it, Pierre stresses the focus on the eBay buyer experience…
*This is my first time incorporating video into eBay Ink so the pessimist in me apologizes in advance for any potential technical issues.
Tagged: ceo, ebay, ebay inc, Executive Thoughts, founder, interview, john+donahoe, Marketplace, pierre+omidyar
JJHOn 04.29.2008 at 10:24 am Said:
Is there some reason we cannot see the entire interview?
I haven’t watched it yet, Youtube is blocked at work (but the ebay blog isn’t, go figure).
TheBrewsNewsOn 04.29.2008 at 10:39 am Said:
I have the utmost respect for Pierre both as a businessman and as a person. I have no doubt that he is a many of great integrity and sincerity. However, after watching the videos I also have no doubt that he is also a man who is clearly out of touch with the eBay community of 2008.
For example: in the first video Pierre states (and I quote):
“What I meant by level playing field is that everyone should be given an equal opportunity….. I didn’t want to have sort of artificial barriers placed on newcomers and to have people by virtue of their stature outside of the eBay community somehow be treated better — special deals behind the scenes because they’re a big retailer and we want to get them to come on eBay, that kind of stuff. That would have been - is - a disaster. That is what I meant by level playing field.”
Perhaps no one has told Pierre but… on Friday Feb 8th reported on msnbc.com:
General Motors said Friday that 3,900 auto dealers who sell GM’s Certified Used Cars will list their entire inventories on eBay Motors, according to industry publication Automotive News.
The listings will be free for dealers, the report said, and could radically alter the used-car business.
MechelleOn 04.29.2008 at 10:46 am Said:
yes, why not the entire interview? I can’t help but feel when I am only shown segments of a video, partial quotes and like practices that I am being manipulated and deceived with a biased dishonest representation of the story.
Patricia 1On 04.29.2008 at 10:53 am Said:
Only a fool would allow buyers to totally run rampant over their customers (the sellers). By attaching such stringent penalties to buyer ratings ebay is doing just that. It stems from a mentality that sellers are still a dime a dozen and so are thereby expendable. Ebay is oblivious to their current reputation and the word of mouth being spread by the sellers they are kicking around. This doesn’t go unnoticed to future potential sellers. If we treated our customers the same way ebay treats theirs…there simply would be NO ebay!
Old codger that I am I’ve lived a long time and seen the nuances of a lot of people. I see this interview as a definite indication that sellers have made themselves heard to the point of inflicting pain and concern! Ebay pig-headedly staggers on in the hopes that things will turn around. Unfortunately, I see things only starting to get bad - they still have a long way to fall. I say unfortunately because ebay has been my friend, my supplement, my fun, my excitement for the past 10 years and now I see that coming to an end. Most sellers will tell you the same thing and many buyers will too. My one glowing hope right now is that Mr. Donahoe is offered a position elsewhere that is of such monumental importance to him that he will leave ebay and then perhaps we can set about to heal and get on a track that is profitable from them and us too.
TheBrewsNewsOn 04.29.2008 at 11:09 am Said:
Richard, your efforts to share the information are VERY much appreciated and I also appreciate you editing the information to only that which you think is most relevant. Most of us full-time eBay sellers already work too many hours and so having you pull out the “relevant” parts of the entire interview are helpful.
I am really disturbed, though, after watching the clips. I am now even more convinced that eBay management is completely out of touch with the eBay community, especially its sellers. I have more comments about the videos …. but only after I really digest the information and, of course, after all my customers’ postal and FedEx packages make their way out the door today (priority number one).
MistyOn 04.29.2008 at 11:25 am Said:
How is my wanting to remain a low volume seller to give my customers the best buyer experience possible to then have a NPB slap me with a neg for filing a UPI to recoup my FVF which in turn reduces my visibility and other penalty’s 21 day hold, suspension etc. on my business a level playing field for me just because I do not sell enough high volume to absorb the few bad seller experiences I may have? How is that a level playing field?
You say this change is to improve good buyer experience. If I am doing that as a small volume seller now, why are you placing restrictions on me that lowers my ability to provide good buyer experience solely to try and force me to become a high volume seller? To me this says it is meant to increase your bottom line not mine and has nothing to do with good buyer experience at all.
In essence your trying to get me to do something I am all ready doing as a small volume seller but you want me to list more (high volume) which will lower my ability as far as I see it.
I sure hope I am making sense to someone here.
cajoOn 04.29.2008 at 12:52 pm Said:
Interesting that the videos are hosted on you tube but comments have been blocked there. What a disappointment.
According to Pierre I’m too believe that ebay knows whats best for me. I guess we dont have to ask anymore where is Pierre and how does he feel. I already knew the answer but again, disappointing.
Formerly Known As MarikaBooksOn 04.29.2008 at 2:43 pm Said:
There you have it, folks. Pierre backs his boy JD 100%.
Way to talk down to sellers as if they were naughty, ignorant children rather than intelligent business people who helped make you rich, Pierre! Some sellers ask for things which don’t make sense and are not good for them? Puh-leeeez.
If y’all thought Pierre would do things differently than JD, I guess you know better now. If you don’t, listen again.
JJHOn 04.29.2008 at 3:49 pm Said:
What a joke.
“No special deals for certain players, that’s what I meant by ‘level playing field’.”
Shrug. Can you say “powerseller discounts”?
That’s certainly a level playing field for “newcomers”, isn’t it? Certainly not “level” for long term sellers who in many cases have BETTER feedback and DSR scores than the Powersellers. Yes, MYSELF included.
“If nobody spoke up, boy, that would be a disaster. We should be thrilled that people are engaged enough to be be speaking out. That’s great”.
It’s also easy to ignore them. Or, maybe you’re not ignoring them, but your sure MAKE IT LOOK THAT WAY. Why don’t you COMMUNICATE BETTER?
“you have to take that input from the whole ecosystem, sort it out, respect it, but in the end, do the right thing.”
People don’t feel the ‘right things’ are being done. Is that respect? Communicate better. This blog is a “step in the right direction”, but it’s NOT enough.
Folks, I think we’re blaming the wrong person for all this. I don’t think it’s Mr. D. who is responsible for all these changes, I think they clearly come from Pierre himself. Well, it’s his company ultimately. He’s the chairman.
It will ultimately succeed or fail or his say so. I guess we’ll see in a year.
Mike RalphOn 04.29.2008 at 4:21 pm Said:
Firstly thank you for the clips and for the willingness to share this information with us, a step in the right direction in my opinion..
Must admit a few of the recent changes have made me raise an eyebrow from time to time but I think this has come from a lack of communication as to the full extent of why a change was required, then gradually as other related (and linked) changes came into play they seem to fall into place.
Not saying I fully agree with every change that has been made but in the end I CHOOSE to use the Ebay selling venue and therefore need to respect the owners way of doing business.
Now what I don’t believe in is “the put up or shut up mentality” and believe that this blog should help go some way to start to bring down the barriers that seem to have risen recently between Ebay and those that provide it with “life” the sellers and buyers.
Will be watching as the blog develops.
Regards,
Mike
HenriettaOn 04.29.2008 at 4:23 pm Said:
Thank you Richard for sharing, it was lovely to see Pierre again and the videos worked perfectly.
CrunchyPostingGoodnessOn 04.29.2008 at 4:26 pm Said:
In the first interview Pierre stated:
“…go back to the core principles, the founding principles and understand and interpret them given the current enviroment and given the current state, the current year..”
Okay, lets do that. Let’s review the core principles and see how they relate to the most recent eBay changes….
“We believe people are basically good”
1. In the current enviroment, eBay is portraying all sellers as being out to scam their buyers, since PayPal is advertised as the only safe way to pay.
2. Sellers can no longer leave negative feedback, because eBay believes the harm they are doing to buyers, whether those buyers are scammers or not, hurts eBay more than the dishonest claims made by these buyers in feedback. Which, by the way, can no longer be held accountable for by sellers, and certainly won’t be held accountable by eBay. The inability to leave negative feedback only hurts the sellers - not eBay.
3. Sellers want to charge reasonable shipping to cover their expenses, but buyers want “free shipping”. Therefore, eBay will punish sellers charging shipping by allowing buyers to mark them down on their stars, even though shipping and handling charges are a normal cost for buyers on any other selling venue.
4. eBay believes this of all buyers (basically good), since it refuses to close the long existing loopholes within the eBay and PayPal system. As far as ebay is concerned, the percentage of scamming buyers, they erroneous believe, is so small that such losses should be acceptable to anyone who chooses to sell on their site. However, eBay and PayPal find losing any of their own corporate money to be unacceptable, so they will not reimburse sellers who are victims of these scammers that eBay has encouraged and allowed on their site.
5. eBay reserves the right to hold PayPal payment for 21 days, because it believes that this is the only way to make sure that sellers will actually ship the item and try and work out problems with the buyer.
So much for the belief that people are basically good. I suppose, given the current state, the current year, only buyers are considered basically good.
“We believe everyone has something to contribute.”
1. Yet eBay fails to listen to small sellers, while catering to Power Sellers and those who pay to attend special conferences.
2. eBay will listen, but will dismiss anything which does not fall in line with their preconceived notions of how eBay believes things should be. Also, regardless of how other successful online venues operate.
3. eBay believes, for the time being at least, the only point of view which is of any value is that of buyers, or I should say, those who bid on an item. Actually paying for the item, or performing a charge back after receiving the item, doesn’t diminish the wants of these scammers - I mean buyers - in eBay’s opinion.
eBay believes the only people with something to contribute are large sellers and, what I’ll loosely term, buyers.
“We believe that an honest, open enviroment can bring out the best in people.”
1. Of course, eBay only applies to buyers, as sellers are not able to honestly and openly express their dissatisfaction with a buyer in the form of negative feedback.
2. eBay also believe that buyers should not be accountable for anything hurtful or dishonest that they write in feedback. Nor do they require honest and open communication on the part of the buyer, before said buyer leaves negative feedback for a seller.
3. eBay believes that such standards (honest, open enviroment) are not required of its corporation as they reserve the right to continue spreading false information. For example, telling buyers 3 and 4 stars are good, while punishing and penalizing sellers who receive 3 and 4 stars.
4. They also reserve the right to use semantics likes “there are no plans” to equate to “there is no set time line, but yes, we plan on making that change too.” Example: making all listings PayPal required.
Similar to “do as I say and not how I do”.
“We recognize and respect everyone as a unique individual”
1. However, eBay expects that all sellers perform as professional sellers - including communication time, shipping charges, and shipping time. They do not care if you have a personal life, that you only do this part-time, or that the buyer’s expectations are unrealistic.
2. They will in essence make the punishments more severe for small sellers and allow for buyers to easily scam these sellers with the threat of negative feedback, seller reports, restrictions, and suspensions. Smaller sellers have less volume, and therefor will be unable to absorb negatives as easily as large sellers.
Uniqueness and Individuality are impossible in an enviroment which forces a cookie-cutter mentality of looking at different levels of sellers.
“We encourage you to treat others the way you want to be treated”
1. Of course that only applies to sellers, as buyers can treat the sellers any way they want with eBay’s and PayPal’s blessings. All punishments and force are directed solely at sellers. Buyers are not held accountable in any way.
2. eBay will continue to allow buyers to create multiple ids to constantly circumvent the blocks sellers have put in place to protect their business.
Another statement from Pierre, in the first interview segment:
“…clearly the level playing field, you know, I never meant level playing field to mean that everyone, regardless of the quality of service they provided, regardless of their experience on the site, regardless of their feedback rating, everyone should be treated exactly the same way… that wouldn’t make any sense”
Yet eBay wants all sellers to operate the same way, as professional sellers only, regardless of their experience, feedback rating, or ability. This is a direct contradiction to what Pierre is stating. eBay is doing exactly what Pierre has stated, “wouldn’t make any sense”.
“…everyone should be given equal opportunity”
The opportunity is not equal when Best Match favors professional sellers over smaller ones. It is not equal when eBay wants to dictate what is reasonable shipping from the cost point of professional sellers only. It it not equal when eBay is setting the standard to professional sellers - instead of recognizing the individuality of the sellers within the eBay community.
Also, the opportunity is not equal when eBay is constantly changing the rules of what is acceptable to list and in what format. Example: digital delivery items can only be in classified ads now.
Pierre also said, “… individuals, people, use their opportunities differently and if you can use that opportunity differently, and advance more, and find more service to customers, if your a seller, and so forth, then you should be rewarded for that.”
True, but that isn’t what eBay is doing. It is using the DSRs as a form of punishment - not incentive. If your stars fall to a certain rating, you can become restricted and/or suspended. If they drop, even as the result of scamming buyers, you will lose your Power Seller status and discount.
The psychology behind the reward system is that a person is rewarded only when they do something good. If they do not do something good, then nothing happens - not even punishment. For instance, a parent can reward their child for performing a chore by an allowance. If the child does the chore, then they get the money. If they don’t do the chore, then they don’t get the money. That is an example of the reward system.
What eBay is doing is a punishment system. The punishment system works on the principle that something bad will happen if you don’t do something. For instance, a child will be grounded (if that is still the current phrase) if they don’t do a chore. The difference between the two systems is that in one, the reward system, the status quo remains the same, and only offers the opportunity to improve. The other system, punishment, there is no status quo, only punishment for not achieve a goal. The punishment systems offers no opportunity for improvement - only survival.
“… artificial barriers placed on newcomers…”
Yet, new sellers have to offer PayPal and they can not offer “Buy It Now” listings.
*** I won’t even deal with the “special deals behind the scenes”, as I believe other posters have already done a good job of pointing that out.
Dave_WhiteOn 04.29.2008 at 4:44 pm Said:
RBH
Thanks so much for providing an insiders look at an event that was staged for eBay employees. I as many others probably noted also, saw many familiar faces in the crowd shots.
DW
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