Monday, May 19th, 2008
Knowing Where You Stand
In an AB Post today regarding changes in eBay Marketplace policies, John McDonald, Sr. Director of US Trust & Safety said the top-line reasoning behind these changes is to “create more choice and selection for buyers and make it easier for them to find what they’re looking for. Second, these policy changes add flexibility, convenience and cost-savings for our sellers.”
And there is some great news here. For instance, the Choice Policy (good name for a policy that actually limited choice), is being eliminated so that sellers can now list items in different sizes, color, etc. in a single listing. This helps buyers with a more convenient shopping experience and provides sellers with relief on insertion fees.
But what I want to focus on here at Ink is the expansion of the Seller Dashboard and Best Match rankings because they are intertwined and very relevant to the issue of transparency. I would go so far as to say that a lack of transparency in the recent past has both pulled us away from our roots and hindered our relationship with the community. However, I’ve been encouraged, since joining the company in January, that the concept of transparency is being so widely embraced. It’s definitely something everyone is trying to get better at doing (how else would we have got this blog up and running with comments to begin with?).
The Dashboard is a significant step forward in making eBay a more transparent company with which to do business. And in the interests of transparency, it seems that we are disclosing some issues with Best Match ranking that were perhaps not made abundantly clear:
Since launch, we’ve been monitoring and making adjustments. Some of our adjustments will result in a larger number of sellers with below average performance scores being lowered in Best Match search results. If either of the following conditions apply to you, the visibility of your listings may be reduced:
- Your shipping cost DSR is 4.5 and below
- Your buyer satisfaction rate (shown on the dashboard) appears as “needs improvement,” “poor” or “unacceptable.”
The good? Sellers with 4.7 and above (on all DSRs) should start to see an additional boost in their search standing in Best Match (yes, the announcement is another outbound communication from eBay hammering home the message that sellers are being rewarded for providing the best possible buying experience at the expense of those sellers that are simply “good” rather than “great”).
What I’m interested in hearing about from you though, when the Seller Dashboard is unveiled later this week, is whether or not it is providing you with the information and transparency you need in order to make your business decisions? Is it really letting you know where you stand in the marketplace?
Here are links to some key docs associated with the news today:
Policy Changes FAQ
Seller Non-Performance Policy
Circumventing Fees
Chance Policy
Links Policy
Tips for Improving DSRs
Cheers,
RBH
Tagged: buyers, dsr, ebay, ecommerce, feedback, john+mcdonald, policy+changes, seller+dashboard, sellers, transparency
Patricia1On 05.21.2008 at 8:17 pm Said:
I wonder what ebay feels they’re going to gain by making their own sellers look bad to buyers LOL Maybe I don’t understand this disruptive business…to me its shear madness! That’s like a boss telling a customer - hey - watch my employee - he’s a bit “shifty”. LOL I can just see buyers streaming in and lining up to buy from all these less than perfect sellers LOL Excuse me - my sides are aching from too much laughing. I’m gonna go feed the cat.
CrunchyPostingGoodnessOn 05.21.2008 at 10:35 pm Said:
“Why not get rid of “Neutral” ratings all together? People either had a good experience or they didn’t. Should there really be a rating for someone feeling “indifferent”?”
There is one real good reason why eBay won’t eliminate neutral feedback - they want seller feedback to drop.
Giving the buyer an “neutral” option allows the buyer to express some level of slight dissatisfaction, without feeling that they are totally blasting the seller’s reputation with a negative.
If a buyer has a neutral experience, yet is only given the options of either positive or negative, most likely that buyer simply won’t leave feedback at all. A buyer doesn’t want to reward a seller with positive, if the experience or item wasn’t. By the same token, the buyer will not want to issue such a harsh rating as negative for an experience that was just “okay” or “so-so”. The neutral rating option provides the buyer with an easy out.
In eBay’s mindset, without the option of neutral, a lot of buyers simply would choose not to leave feedback. The problem - eBay wants buyers to leave feedback. Ebay wants buyers to call out any little possible, small amount of dissatisfaction or “so-so” feeling that they had about the transaction.
Furthermore, eBay only wants sellers who provide an excellent experience for the buyer. If the buyer experience was only neutral, then eBay feels the seller should be punished with a lower feedback score for not making the transaction unequivocally positive.
Richard, I think if you pass this theory by Donahoe you will find this to be the case.
CrunchyPostingGoodnessOn 05.21.2008 at 11:03 pm Said:
Also, when you compare is the the DSRs, this neg=neutral is really no different.
eBay wants sellers to really go above and beyond to get 5 star ratings, so eBay tells buyers that 3 and 4 stars are good ratings and 5 are for exceptional.
Then eBay rewards the 5 stars (exceptional) sellers, while subjecting the 4 star (good) sellers to PayPal holds, reduced listing visibility, loss of Power Seller status, and other various punishments.
The whole purpose behind telling buyers 4s are good, is to make sure that buyers feel okay about just leaving 4 stars. It is the same reason why eBay is now actively telling buyers they can leave negs and neutrals without any fear of retaliation( i.e. accountability). eBay wants for seller stars and feedback percentages to drop, and they know that honest buyers would not feel right about leaving 4 stars and neutrals, if they were aware that those ratings were actually hurting sellers.
Let’s also not forget that eBay feels that generally seller feedback on eBay is artificially inflated with unrealistic positive feedback ratings. What is the quickest way to get those ratings to drop? Make buyers feel okay about doing it, by telling them one thing, and actually calculating the ratings against the sellers differently.
Patricia1On 05.21.2008 at 11:12 pm Said:
Crunch - please explain this to me:
“There is one real good reason why eBay won’t eliminate neutral feedback - they want seller feedback to drop.”
Maybe I’m just old-fashioned but how can success come to a business that totally bashes its customers (the sellers) disrespects them and then expects buyers to flock in and buy from people that ebay downgrades to the point where the whole operation looks downright seedy? Under the circumstances I wouldn’t buy at ebay and for that reason. There is something unhealthy about the whole operation. If they have a goal in mind…to maybe get rid of the sellers eventually, then I can see them doing what they’re doing but to purposely make their sellers look bad and expect buyers to come in and buy because of it does not make sense to me. So, please, if you can explain it simply so that I can understand it I would be most grateful. As it is, I’m listing less and less because I’m just plain losing my taste for the whole operation. Frankly, I don’t like what ebay is becoming and I bet as sellers AND buyers catch on they’re not going to like it either. The whole sense of community is destroyed and they are expecting to make sales and new business out of the rubble?
CrunchyPostingGoodnessOn 05.22.2008 at 12:16 am Said:
Hi, Patricia! Looks like you are a night owl like me. 
Please understand that I do not agree with what eBay is doing and I do not agree with their reasons. I am only pointing out why eBay will never remove the neutral feedback option.
I can not explain why what eBay is doing is good, because I do not believe it is good. However, I can explain why eBay believes it is good, if that helps.
eBay believes that seller ratings on their site are artificially inflated right now. For instance, a lot of people feel that a seller with a rating of 98% or less is to be avoided. eBay wants to drop that to something more realistic.
In some part they are right, because were else do you find the mentality that 98% is a bad rating? Even most schools consider that “A” performance. If I remember correctly, Khols only has around an 80% customer satisfaction rating. In fact, I don’t know of any retailer that has above a 90% customer satisfaction rating. Even on Amazon, it is very rare to find sellers who have 96% or better, if they have been selling on the site for any length of time.
eBay is trying to make the seller feedback to be more inline with what sellers on other online venues have. There have even been studies (not done by eBay ;-)) that buyers are willing to purchase from sellers on Amazon with a lower feedback score, than sellers on eBay with a higher score, because they feel the seller feedback on eBay is artificially inflated. So in essence, buyers weight lower feedback scores on Amazon higher, than the equivalent scores from an eBay seller.
If eBay wishes their sellers to be able to compete on equal footing with Amazon sellers, then they must make the feedback score weights equivalent. Of course they could accomplish this objective by making less drastic changes, but that would take too long. eBay feels they need to compete head-to-head right now, so they are instituting policy and rating changes which will accomplish this very quickly.
It is working too. All one needs to do is review the SC postings to see how quickly seller feedback percentage scores have dropped. Eventually buyers will begin to realize that ratings of 98% are not something to be wary of, in fact 94%-96% will most likely become the norm. As this realization takes place, eBay will also probably lower the minimum feedback score necessary to become a Power Seller, receive discounts, have higher search rankings, and no holds on PayPal funds. However, they first need to make sure that the feedback scores are dropping enough, universally, before changing their required levels of seller performance.
One more thing, on Amazon if a seller receives a neutral rating it drops the seller’s feedback score percentage. So one could argue that even Amazon treats neutrals as negatives, to a certain extent.
Again, I’m not saying it is right, and I’m not saying I agree. However I would bet if Donahoe was to read this right now, he would probably agree that this is exactly what they are trying to accomplish, and how they are trying to accomplish it.
BTW, as to the community aspect being destroyed, this is something eBay also wants, in part. They still want a community, but they want a more professional, business like community. Sure they will lose current buyers and sellers, but if they are successful with these changes, then they will acquire a completely new and different class of buyers and sellers, which is exactly what eBay wants.
dennyOn 05.22.2008 at 3:51 am Said:
We are just weary of all the changes …our sales have nearly disappeared in the last week going from record highs in the past 4 months. Another local seller we know has experienced the same…items that he sold on a daily basis - nothing for the past week. Of course it must be us eBay….all is well with the site and of course we are getting maximum exposure for all our efforts and 4.8 DSR averages - BULL! It is nearly a full time job just keeping up with the onslaught of changes. eBay is and has been our full time job for years and we are in immediate danger of losing it due to the constant tinkering of the MBA’s…so sad…so very sad! When items ending soonest were the default search at least we had a fighting chance and the site looked much more interesting than the sameness of search today….so very sad!
Mark ClassicOn 05.22.2008 at 5:16 am Said:
SNP problem Richard?
You have not yet acknowledged one post on that subject.
I know you are busy, but could you please ask someone how it is justifiable to suspend someone selling on Ebay for 1 neg?
ChrisOn 05.22.2008 at 5:19 am Said:
Richard,
As a blogger, do you think you could live up to the new Links Policy and still be fully effective with this Blog?
For example if eBay gets some great (or highly interesting) press coverage, wouldn’t you like to post a tidbit here and a link to the full story?
I think that as announced, the new policy is too much like a 1990’s walled garden (e.g. AOL).
Patricia1On 05.22.2008 at 9:04 am Said:
Crunchy - no…not a night owl. I’m in Southern California - I’m still up when the rest of the country is fast asleep I was afraid that is what you were going to tell me. So, in effect, ebay is “dumbing down” its business simply because it feels it will “look” more like Amazon. I was sorely afraid of hearing that LOL I can’t say what I’m thinking right now…but when I go and shop on Amazon for my books and tapes I will ALWAYS go to the seller with the HIGHEST feedback even if the book costs a few cents more. Reputation is EVERYTHING in business - I’m sure the world hasn’t gotten that out of sync yet. What a grand mess and one where in the end we may well lose ebay forever 
I can also tell them that in my category - Arts - there are more 100 percent sellers AND buyers than most any other category. Competition there is already so stiff that most sellers learned to walk on water a long time ago and buyers seem to be more honest too.
Patricia1On 05.22.2008 at 9:07 am Said:
Denny - just a suggestion - start diversifying. Yes, you ARE in a dangerous position if you keep 100 percent of your business in one spot.
TWOn 05.22.2008 at 10:44 am Said:
New Dashboard now visible. I already know where I stand. The dashboard does me no good whatsoever.
I’m raised, 15% (last month), Silver, good, good, current and still will lose my 15% discount this month (4.7 shipping handling) because I can not and will not give away shipping. I conduct business like every other online seller out there and will be punished for it.
The system is set so that the 15% discount is just out of reach for most sellers. And that is what eBay wants.
TWOn 05.22.2008 at 10:47 am Said:
The DSR system is a farce. We should not be judged on the price of shipping when the customer knows it going into the transaction. There will always be buyers who will give a 4 instead of 5. I am guessing that was known by eBay before all this nonsense started.
Patricia1On 05.22.2008 at 10:56 am Said:
No wonder I can’t get views on my work. My standing in search is only standard! With 100 percent feedback and DSR’s at now 5.0 across the board! I suppose now they’re going to say I don’t have enough items up to be raised in the standings? What baloney!!!! This just means keep on looking for other venues!
TonyOn 05.22.2008 at 11:12 am Said:
TW blame the system, not your buyers, 4 shouldn’t be a bad mark in a 5 star system.
DawnOn 05.22.2008 at 11:22 am Said:
Richard said:
“What I’m interested in hearing about from you though, when the Seller Dashboard is unveiled later this week, is whether or not it is providing you with the information and transparency you need in order to make your business decisions? Is it really letting you know where you stand in the marketplace?”
Unfortunately, no, the new Dashboard does not give me the information I need in order to make business decisions. For the most part, it takes information I already had, and formats it into pretty little graphs. There is very little new information there.
Richard, you might want to suggest that the default for the graph at the top be set to one of the 30 day average options, rather than the 12 month option. Posts are already flying on the discussion boards because people don’t understand everything is based on 30 days, and the chart (at its default setting) shows 12 month data.
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