John Donahoe Interviews Pierre Omidyar

Pierre and John

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.

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CrunchyPostingGoodnessOn 05.05.2008 at 6:42 am Said:

@ Patricia

Thank you for posting the link! :-)

SuzyOn 05.21.2008 at 6:32 pm Said:

I’m somewhat sad.

We have ended our work together due to the announced changes and we both lose something by that.

As a small seller, eBay won’t miss me by myself or our store, but they will miss the cumulative effect of all the “me’s” leaving, many quietly and without any announcement, just gone to other sites.

I was a good, stable seller. I packed well, offered fast shipping (priority mail out in 24 to 48 hours post payment received)reasonable handling fees, had no problem that I did not attempt to resolve- simply asking that the item be returned and a refund would be sent on receipt of the returned item- and not many of them.

My stars weren’t the 5.0, but they were all above 4.8 (partly due to eBay stating a “4″ was good to buyers but dinging sellers on that number)until I got a nasty one and that was the one that lowered all my stars and really hurt me on the s/h charge ($1.00 handling on items, but yes, $2.00 on delicate or fragile items to cover the extra supplies), though the poor buyer only paid after a UID had been opened, and never contacted me about any problem. Just the nasty FB left.

Now, add that to the messed up search, the store items out of any form of search as well, the DSR’s which are not accurate ( nor anonymous, either),the FB mess currently started, and the threat of eBay cramming Paypal down everyone’s throat( and seller protection from PP is a joke, just a joke)….anyone who has NOT read the user agreement on PP really needs to read the parts about the money holds and the way PP can force a amount to be held regardless of the money’s owners choices. Not a good thing and no, I am not talking of the 21 day hold at all.

The 21 day hold is a goodie, though, look at the interest that can be made and added to the coffers of eBay through that alone. And the 6 month hold on the money if you try to quit Paypal…more interest and you know how long you will control that money, too, how wonderful for the profits!

Disruptive innovation? A large mess is more like it, from my point of view, but that is because it has affected us directly, and many others we know personally, as well as the effects on the boards/ other chat boards.

I am so sorry to hear that the founder of eBay feels as he appears to in the above interview. I had a lot of respect for the company that he had created and carried up to the top in it’s field- actually creating a somewhat new field altogether. That was an accomplishment and I truly do hope that he enjoys all the rewards he has as he did this wonderful thing and had that vision and the guts to carry through with it.

No company can stay static, changes must come, yes- but not at the base of what made eBay unique and a giant among others- the sellers and buyers both, the PS and the mom and pop’s. all contributed to the success of eBay in the past.

Who will be contributing to eBay anymore, many of the unique ( you could find “IT” on eBay before, yes, most any IT there was, some precious, some foolish, but “IT” was on eBay, when the very people that helped make eBay what Mr. Donaho is trying to destroy?

Search continues to be awful. It just is plain old awful. Costs are way up (and spare me the “reduction in fees” thing, not stupid enough for that), scammers up and working harder than ever, system glitches and security breeches. Just a few things that need to be addressed quickly and competently by eBay.

But no, innovation that is disruptive is not always good- and it is not good on eBay in general.

Yes, there are bad sellers and bad buyers- but most are good and honest- I still believe that.

Obviously, eBay does not.

LegendsOfBatmanOn 06.03.2008 at 2:33 am Said:

First, I have to note that Pierre has described PRECISELY what ebay is now doing, as he explains what a level playing field is.
As I type this, buy.com (Ebay user ID BUY) has listed over 43% of ALL listings in the BOOKS category. There were over 900,000 listings, with Buy having listed over 420,000 of them.
What is even more curious is that as of earlier this afternoon when I searched on Completed Auctions, of the over 1 million auctions Buy listed, I had to search 16 pages before I counted 10 sold items. On page 16 there were 2 sales, bringing the actual total to 11. 11 sales out of 800. This is less than 1.5% sell thru rate.
The question is “How is this profitable for Buy.com?” Answer: It is not! Consider this, an even million auctions, and suppose it was only .10 to list it would be $100,000 if my math is correct. We are to believe that Buy paid ebay $100k to have a sell thru rate LESS THAN 1.5%???????
Ebay, we demand answers here. We do NOT believe this happened. We believe Buy and Buy.com was given drastically reduced rates, perhaps even free listings
to make it appear as if the listings in the books category were increasing.
PLEASE explain this. We deserve an answer. Your investors deserve an answer. And, for once, an honest answer.

Pierre:
Too bad he wont see this, but, in the miraculous event he does, Pierre, please ask yourself HOW is it that this so-called “Buyer experience” and the sellers’ opposition to it, going against their best interest?
First, let me be extremely clear here. Ebay is NOT doing this for a better “buyer experience”. Its all smoke and mirrors dribble. Its an attempt to fool investors and the media into thinking ebay is changing its long standing policy of doing zip for buyers. The fact of the matter is that ebay will continue to zip for the buyer. IF ebay REALLY wants to make ME, a buyer feel safe from REAL risky sellers,
I offer one solution that will better the community:
KICK THE BAD SELLER! Any short of this is pussyfooting around, and simply a means of pretending you care. You’re a business. You dont care about anything but our money. Admit it, and move on. I for one would have more respect for the company as opposed to the disrespect I have for all this artificial nonsense that is going on.

Btw, I love the brilliance behind forcing so-called risky sellers to accept PayPal only or 3rd party credit cards.
Lets assume I run into a REAL risky seller; not one of these artificially defined sellers ebay is categorizing as risky. But, lets say for argument’s sake, I run into a REAL risky seller, and ebay has forced them to decide Accept PayPal or a 3rd Party credit card. Now, realize that as stupid as criminals are, they aren’t dumb. They realize that ebay is forcing paypal to hold their funds for 21 days. Thats no good, so, they say, “What the heck? Ebay is now offering me the unsuspecting buyer’s credit card info. Now I can have the money, the item, AND their credit card info too!”
Yeah, I as a buyer feel REAL safe under these conditions. And your solution? Force PayPal only? Sorry. But, PayPal is your baby. I can’t trust ebay, and now I see ebay is screwing up paypal as well? I cant trust that either. Not after seeing how PayPal took $2000 from someone’s bank account, and having proof, paypal STILL refused to refund the money, until attorney and lawsuit was brought up. Then suddenly paypal says, “Oh, we discovered we took double payments…” Sorry, guys, there is ZERO credibility.

Tim
myspace.com/boycottebay

E-Sell-ItOn 06.29.2008 at 12:30 am Said:

Too many changes at once I think is the biggest fault. But I can understand what eBay is attempting to do with these changes. But I am failing to understand the concept of removing the ability to leave neutral or Negative feedback to buyers. Such as if a buyer fails to pay for an item. I should be permitted to leave that buyer a Negative feedback. Instead I can only leave them a positive.. But the Buyer can leave me a negative when they do not pay?! That is just wrong. If the buyer fails to pay they should not be permitted to leave a negative feedback.

My thoughts on improving the buyer experience.

You want honest feedback? Force sellers to leave feedback for buyers before they can receive one from buyers. Positive, Neutral, and Negative. That is the way I believe it should be done. If a seller leaves a negative feedback then the buyer has the option of leaving retaliatory negative feedback. Which ALL sellers will avoid! Plus, give buyers an option to remind sellers to leave them feedback. We as sellers have it.. Buyers should have it also..

Neutrals should not count. I truly do not understand why this was changed. I have had buyers who have left me neutral feedbacks and who were overall satisfied with my service. So much so they returned to buy more items. I did not mind because the neutral did not effect my rating.. But now if I receive a neutral or negative and I feel it was not justified I will add them to the block bidders list..

DSR’s

This is a flop in my honest opinion. If you want to have this then it should only be seen by the sellers and not the eBay community. Personally I liked it when it first came out.. It let me know what areas in my business needed to be strengthened. But as time has gone by and I see how I am being rated, I am finding it to be ridiculous.
Item as described: I have one account that I sell clothing items.. The description consists of item measurements and nothing more. All the measurements are accurate and sizing is accurate as well being all the items are brand new with tags.. So why don’t I receive a 5.0 rating?

Communication: Since this started I expanded my business hours from 8 hours a day to 12 to accommodate buyers/potential buyers in different time zones. PLUS I have also given our staff members access to our email accounts from the comfort of their own homes to answer emails throughout the night. So effectively we are offering 24 hour support.. The most anyone ever waits for a reply is 2-4 hours. And that is only if the question is asked at 3:00 in the morning.. So I should be getting a 5.0 rating in communication no?

Shipping Time: I ship items Mon-Fri using all of the major carriers. Most items are shipped the very same day payment is received. PLUS I typically always upgrade my buyers shipments to a more expedited service when cost prohibit the upgrade. I.E. Parcel Post to Priority Mail and so on.. So again I should be receiving a 5.0 rating OK maybe a 4.8 being I do not ship on Saturdays. But buyers confuse Transit Times with this rating.. So I get rated when the shipping carrier takes a long time to deliver the item to the buyer.

Shipping & Handling Charges: I have been working at this one the most since the DSR’s started. I typically charge a $2.50 handling fee to cover the costs associated with the shipment of an item. (Box, peanuts, bubble wrap, etc, etc.) But I have never gotten this above a 4.5 average.. I was so disturbed by this that I spent the past 3 months offering FREE SHIPPING on all purchases. I took the loss, and my goal was to at least have 1 month where my DSR rating for this was a 5.0. What did I get? 4.5 4.6 and now I am at a 4.4. WHY?! I DO NOT CHARGE FOR SHIPPING!! So how can I be averaging a 4.4 on S&H charges?! What do I have to pay people to get a 5.0?!

So again if you want to have a DSR I am all for it.. But make it seen only by the sellers and not the buyers. Also be more realistic on the discounts.. 4.7 should be the maximum 20% discount to PowerSellers. Maybe I could get a 4.9 if I sell 1 item a month.. Plus put in an extra $20 to get the 5 star rating!

These are my thoughts and please take them into consideration.. This is a healthy way to ensure a good buyer & seller satisfaction all around..

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