Entries from January 2008 ↓

[tag]eBay[/tag] announced the changes for 2008 this morning to a [tag]community[/tag] on the edge of their seats. Judging from the comments around the net tonight though - most of those folks fell off their chair right after their jaw hit the floor.

[tag]Feedback changes[/tag] cause an absolute uproar among sellers

eBay has decided that sellers will soon no longer be able to leave negative feedback comments for buyers. (Yes, that was a period.) They may however leave positive comments. The initial outrage was over what can be done about buyers who are - for lack of a better term - jerks. They are out there. They have outrageous demands and when not appeased, they leave the seller [tag]negative feedback[/tag]. "Tough," says eBay. eBay's intentions are to be more strict with the buyer behind the scenes, when they receive Un-Paid Item notices from sellers. Hmmmm... it's not flying with sellers.

The decision raises other questions though. Feedback was originally instituted to protect the community from bad members, and to reward good members.

[tag]Sellers[/tag] who sell regularly to the same buyer will now be able to receive up to one feedback comment per week. That seems nice. But what if a buyer leaves a negative comment each time? Can they receive a negative comment from the same buyer once per week? Not if the seller adds that buyer to their Blocked Buyer list I guess. Maybe that is why eBay has raised the capacity of the Blocked Buyer list from 1000 up to a whopping 5000 user IDs. What kind of signal does that send?

What's next?

I have tried to remain positive about eBay for a long time. I have openly criticized the whining, complaining members and suggested they grow up. Unfortunately I cannot disagree with them about this. It is a wrong decision. Sellers will leave. I have to think Amazon employees were howling with glee when this announcement was read today. Because that's where they're going. Some eBay instructors feel the added complications will help us get more students, but PR means a lot. The negative talk surrounding this decision will make people think twice about spending $50 - $75 for an eBay class. This is bad for everyone, including buyers, because there will now be fewer sellers and less product on the site.

If at the end of [tag]eBay Live![/tag] this year, the '09 city is "to be announced," I think that will be over too. My prediction is that 2008 will be the last year of eBay Live! Anyone else get that feeling yet?

As the old eBay goes away with [tag]Meg[/tag], and [tag]Bill Cobb[/tag], the end of eBay University, sellers leaving for their own websites or [tag]Amazon[/tag] - what do you predict the picture will look like one year from now?

Popularity: 4% [?]

This class is perfect for anyone relatively new to eBay. Using a combination of presentation and live internet demonstrations you’ll learn to:

• open an eBay Seller Account
• use online safety and security,
• do research and create listings,
• improve your listings with great descriptions and photographs,
• set pricing,
• open and use a PayPal Account,
• monitor your listings
• accept payment
• ship your items

This is not just a dry lecture but a lively discussion where you’ll get your questions answered by a National eBay University Instructor. Many students recover the cost of the class within the first month and some make much more. $20 Materials fee for the class workbook (optional).

Details:
Sat, Feb 9; 9am-1:30pm
Course# 302CP.108; Fee: $70
San Luis Obispo Campus-Room 4760

Popularity: 4% [?]

[tag]eBay[/tag] has announced the details of the [tag]changes for 2008[/tag] including [tag]lower fees[/tag] including discounts for good performance, a revamped Feedback system, more integration of [tag]Detailed Seller Ratings[/tag], and new qualifications for [tag]Powersellers[/tag]. All of these changes seem reasonable on their face. I'm sure the eBay sellers will find a way to look at them through brown colored glasses though.

[tag]Free Gallery Photos[/tag]

One very welcome new change is free gallery photos for all eBay listings. This $.35 fee on every listing will not be missed. When calculating the new versus old fees, this is balanced a little by the higher Final Value Fee for items under $25.01. It is now 8.75% of the total for that tranche. For sellers who sell items that are $9.99 or under, and consistently use the gallery option - this will amount in an overall savings with the newer fee structure.

There are way too many details to report here, but you can read them all on eBay's Information Page.

[tags]eBay fees,Bill Cobb,DSRs,ecommerce,Feedback,selling[/tags]

Popularity: 4% [?]

In my [tag]eBay classes[/tag], I get some questions every time. Usually as a student gets the auction process for the first time, it dawns on them that they may be able to bid up their own auctions to increase the price. This is called [tag]shill bidding[/tag] and it's a big no-no.

I've written an article on shill bidding on my [tag]Squidoo[/tag] page. It discusses the definition as well as what [tag]eBay[/tag] does to catch shill bidders. It also mentions the punishment when you get caught. (And you will.) Take a look at my article.
photo credit: c0reyann

Popularity: 5% [?]

If you are a seller on [tag]eBay[/tag] hoping for a return to the good old days - you were disappointed with what CEO-elect [tag]John Donahoe[/tag] had to say today at eBay's Q4 2007 earnings call.

Mr. Donahoe promised (among other things) "a break from the past" including changes to fees, feedback, and trust and safety. He promised to make the site reflect what buyers are asking for such as making the site easier to use, speed, convenience, and reliability. Maybe the most disturbing thing on the horizon is what sounds on its face like a Frankenstein-like "marriage" of [tag]auction[/tag] and fixed-price listings. Will eBay force sellers to add a Buy It Now to every listing?

The anticipated fee changes basically sound like a move toward Amazon's model. Lower up front cost, higher final value [tag]fees[/tag]. Also, a lower priced Gallery photo - maybe even free? - was announced. We'll see next week.

In any case one word that really stood out during the call was "aggressive," as in "aggressive changes." Do you think sellers will be aggressive in their efforts to skip this new idea that is, according to Mr. Donahoe, "uniquely eBay"? Is "uniquely eBay" even a compliment right now? [tags]ecommerce,ebay stock[/tags]

Popularity: 4% [?]

After ten years at the helm of what has been called the fastest growing company in history, [tag]Meg Whitman[/tag] has officially announced her retirement to the [tag]eBay Community[/tag] on eBay's Announcements Board. This comes about an hour before announcing earnings for Q4 2007.

As expected, Meg also named her apparent successor as [tag]John Donahoe[/tag], head of [tag]eBay[/tag] Marketplaces. I know a lot of people beat up on Meg for eBay's problems of late, but somehow I think it's going to get rougher before it gets better. Meg really does love eBay. She personally buys and sells on the site. I am not convinced Mr. Donahoe uses the site, nor am I convinced he appreciates the community and what really made eBay what it is (was).

For the full story you can read the official announcement. Comments are most welcome.

Popularity: 3% [?]

Hold on to your hats. Maybe Meg won't be standing on the stage with Bill Cobb in Chicago this June at [tag]eBay Live![/tag] The Wall Street Journal is reporting that [tag]Meg Whitman[/tag], [tag]CEO[/tag] of [tag]eBay[/tag] since 1998 may [tag]retire[/tag] in as little as a few weeks. It's reported that she is leaving on her own as she's approaching her ten year anniversary. She said she didn't think any CEO should stay in that position for more than a decade and she seems to be making following her own advice.

Here is the scary part though..."Any efforts to reverse the slowdown could involve drastic changes that may be more palatable under a new CEO..." Oh man. If you thought it was bad already, hang on. The conventional wisdom is that John Donahoe will take over for Meg. This will move management even further away from the early, "funner" days of eBay.

What will this mean for eBay? Will it have any effect at all if [tag]John Donahoe[/tag] takes the reigns? Will she sell the contents of her cubicle on eBay? The world waits on the edge of their collective seat... I'd love to hear your thoughts.

See the full report on CNET.com and Silicon Alley Insider.

Popularity: 3% [?]

Have you heard the noise about eBay's new way of "finding" on the site? Well, lots of people hate it. But that is not news. Lots of people would hate it if eBay found a way to attain world peace, just because it's eBay.

One big concern is the rumor that [tag]eBay[/tag] will use [tag]Detailed Seller Ratings[/tag] ([tag]DSRs[/tag]) to determine a seller's position within search results. That was my concern. With all the hatred boiling over for [tag]eBay's Best Match[/tag] - I must say I thought it was a terrible idea. I was sure it would penalize me, a relatively small seller, with less than 100% Positive feedback, and less than five stars on my Detailed Seller Ratings. It turns out though, that DSRs are only a small part of the equation.

I found a great article on understanding Best Match. Before I send you there, consider the power in knowing how to use it to your advantage as a seller. If you do research, use high quality relevant [tag]keywords[/tag], and charge fair shipping, you may be quite happy with the results. In fact, if you do those things, you may get a lot more exposure than you're getting now. DSRs may count for something, but in my research so far they don't count as much as high quality [tag]listings[/tag].

Take a look at the article mentioned over on Auction Insights on Decoding eBay's Best Match. Can you think of any other ways to make Best Match work for you?

Popularity: 5% [?]

This is the last in a series comparing the characteristics of eBay and the US Government. In the last post I discussed the fractured community and how it's hurt eBay in the eyes of buyers and sellers alike. The last way the two behemoths compare is a bit sad...

#5 - Faded glory

The image of the United States as a glorious beacon of freedom and liberty has undeniably faded around the world. It can be a bit sad to see historical films showing crowds cheering the troops as they liberated cities around the world only to see the negativity and bickering that goes on now.

[tag]eBay[/tag] reflects a similar faded glory. At one time people were proud to say they made their living on eBay. I can say from experience, when those people in my community (see part 1) told me of some of the trouble they'd had with eBay, I was a bit embarrassed. I used to hear those stories and it would turn out that it was something they had done wrong. Nowadays, they are more often victims of scammers or eBay's [tag]bureaucratic[/tag] red tape. What a shame it has come to this.

What now?

Even with all the problems I'll continue selling on eBay. I have never been an eBay-basher, and I'm not starting now. Sellers talk about expanding to other channels to sell. I think that is very smart. Do I believe eBay will go away? Nope. It always was the best place to sell collectibles and it still is. I will still teach people to use eBay and they can make some good money there. But in the end, the glory days are in the past. I could never imagine Pierre or Meg describe eBay's homepage as a "flea market." Looking back, it was when eBay started trying to be a retailing giant pushing loads of new "practical" items that it lost its fun, quirky edge. They insisted on pushing new, "practical" items instead of the unique, collectibles. Based on the "flea market" comment by John Donahoe, it seems that's the course they'd like to continue to take. Like Dr. Phil says, "If you keep doing what you've been doing, you're gonna keep getting the same results." Despite the current rhetoric, much like the U.S. Government - not much is likely to change.

Popularity: 4% [?]

In the previous posts in this series, I described how I have seen [tag]eBay[/tag] become bloated, and expensive. As a result of these factors, and turning a blind eye to the community the fourth problem has developed in the once vibrant and positive [tag]eBay community[/tag].

#4 - The fractured Community

One of the most unfortunate comparisons between eBay and the Government is in their respective communities. The U.S. has seen great fractures develop over the past years resulting from disagreements over illegal immigration, the Iraq war, Democrats and Republicans, gay marriage, religion, and the list goes on and on. The eBay community has also seen itself polarized and fractured between [tag]buyers[/tag] and [tag]sellers[/tag], sellers and eBay executives, sellers squabbling among themselves, and the reasons are myriad.

One reason for the divisions is common for both the [tag]Government and eBay[/tag]. [tag]Trust and safety[/tag]. I've always said that without trust, eBay could not exist. They may have tried valiantly to keep crime out of the community, just as the government does, but it's not enough. People are not only losing trust in each other, they are skeptical of eBay itself. For many people, it is simply becoming too hard to do business on eBay. Whether buying or selling. They have to constantly watch out for scammers and thieves.

As a buyer, lets say you wanted to buy some new bluejeans. There is a store to your left, and one to your right. If you go to the store to your left, you have to watch the alleyways and look over your shoulder as you walk. Then once you buy your bluejeans, you safely arrive home only to find out they're not genuine. If you go to your right, you walk down a well-lit street, feeling safe. You buy your new jeans and get home knowing that 1) they're the genuine article 2) if you have any problems and exchange will be simple. eBay cannot do enough to keep people safe, and buyers will take the easiest and safest route to their purchases.

As a new seller, lets say you want to sell some new bluejeans. In order to list your item you must answer literally dozens of questions. If your Feedback score is low, it's likely you won't get the best price because buyers have been taught not to trust you. If you make the mistake of comparing your jeans to another brand, you may find your auction ended for keyword spamming. It doesn't matter if it was an innocent mistake. While listing you're faced with the following questions:

• how do I get photos on my listing?
• how long should my listing be?
• should I choose an auction or fixed price listing?
• where should I set my price?
• what is a Private auction?
• do I need a Reserve price? and do I share it with bidders?
• who pays for shipping?
• how do I know how much to charge for shipping?
• how much is this going to cost me?
• what if my item doesn't sell?

There are more questions but you get the point. It's easy for eBay veterans, but as a new seller a garage sale sounds a lot easier.

The magic that held the eBay community together, making events like eBay Live! so popular, has faded for sure. People have gotten used to eBay. The thing that made the community special was people. Individual sellers and buyers selling interesting things. People with stories to tell. Now that eBay has pushed the big brands into the marketplace, it's just like every other site. If the new fees are announced as expected, the bigger sellers will get breaks, encouraging more of the cookie-cutter listings that anyone can pick up at the local stores. Do you think those big sellers are concerned about the community?

Popularity: 4% [?]

This is part three in a series comparing [tag]eBay[/tag] in its present form to the U.S. Government. Part two dealt with eBay fees and how they're administered. When people have lots of money at their disposal, there is a natural tendency to want to spend it on pet projects with benefits to a few, while the masses remain unsatisfied. Thus, the next installment...

#3 - [tag]Pork barrel[/tag] spending

eBay started off lean and scrappy. Now though it has also become bloated with features that are not needed or wanted. Many eBayers are not even aware of some programs such as [tag]My World[/tag], [tag]eBay Blogs[/tag], [tag]eBay Match-ups[/tag]. The programs generally don't add to the bottom line for sellers and they could even be considered a distraction from buying. These programs underscore the truth that their creators really don't understand what the community members want and need. People want an efficient, uncomplicated way to sell or buy stuff. But like the bureaucrats in Washington, D.C., at eBay there is pressure to justify one's existence. So new "fun" ideas are dreamed up. Unfortunately these initiatives are costly, distracting, and dilute the site rather than strengthen it. People just want a safe place to easily buy and sell. But it's not always about the community, sometimes it's about egos and career advancement. Many of the employees don't even use the site, so how can they really know what it needs?

Education programs such as [tag]eBay University[/tag] have been discontinued, or at least marginalized. Live eBay [tag]education[/tag] is left to local Education Specialists to handle in their own communities. The Education Specialist program is a great program, and the instructors are wonderful people. They are one of the last groups on eBay discussion boards with a generally positive attitude. But eBay U was much more than just education. It was great [tag]public relations[/tag]. The same goes with eBay's presence at various trade shows. eBay has cut way back on trade shows, and by doing so they have lost one of the most powerful forms of direct marketing they had. Supposedly the return on investment was not there for eBay on the road. Maybe not in hard dollars, but certainly in word of mouth. I remember annual visitors to some shows that would look for us because it was the only time they felt their issue was heard. Some would tell success stories. Many would walk by and just yell out, "I love eBay!" within earshot of everyone.

Like it or not, there is a cultural difference between politicians in Washington, D.C. and the average Joes across the country. They see life through different lenses. The average Joe is viewed as needing the government's guiding hand in many areas, since they obviously could never make correct decisions on their own. There is also a cultural difference between eBay-the company, and eBay users. If [tag]Ivy League[/tag]rs run the company, and [tag]NASCAR[/tag] fans use the site, there is likely going to be a disconnect between what users want, and what they get. This situation will cause cracks to develop in the community - which leads into part four.

Popularity: 3% [?]

This is the second post in a series comparing characteristics of eBay to the U.S. Government. In the previous post, I compared the notorious bureaucracy of Washington, D.C. to the perception people have of eBay. Number two in the list is:

#2 - [tag]Taxes[/tag] = Fees

Basically we receive services for our [tag]eBay fees[/tag], similar to services we receive from the government for our taxes. Unfortunately, another similarity is that we're paying more for less, and the services are often broken. We have very little say in how those fees are used, and we're often disappointed in the choices made on our behalf.

Many people say, "[tag]eBay[/tag] is not a democracy." True, but people can vote with their feet. Some [tag]sellers[/tag] are leaving because they feel they are not getting their money's worth for the fees they pay. As mentioned in the previous post, old "hands off" approaches to the marketplace are giving way to tinkering and tweaking. Another example is what's happening to the idea of the "level playing field." Just a few years ago, eBay proudly told the [tag]community[/tag] that all sellers, big and small, pay the same rates. No one is treated to special quantity rates or the like. Now though, there is the rumor that some sellers will get better "rates" than others based on their sales volume. Just like the income tax system, the tier you fall into is based on whether you're big or small in the business world. This will encourage larger sellers to flood eBay with items that can be found everywhere else, further alienating those sellers that offer the unique items that made eBay a cool place to shop. When Jay Leno gives eBay free PR on his show, he never seems to mention the sellers that are offering xenon headlights or memory sticks. Will eBay eventually give different rates based on whether a seller is married, has children or drives a hybrid?

Another rumor is that eBay may adopt a new fee structure similar to Amazon.com. No (or more likely low) [tag]insertion fees[/tag], and a higher [tag]Final Value Fee[/tag] on successful transactions. Will that bring sellers back? It would eliminate a lot of the risk of expenses without a sale. But from the comments of disgruntled sellers, I don't think they'll come back. They are really, really upset with eBay. It would be too little, too late. Besides that, for new sellers, all the variations of fees and options are terribly confusing already. In part one of this series I talked about how hard it has become to use eBay. They do not seem to have the ability to make it simpler, just like the tax code.

The fees must keep rising though, because the expenses keep rising. What are some of those expenses? Pork!!
Read part three to find out.

Popularity: 4% [?]

I recently took part in an open house for my town's new community center. I was promoting my [tag]eBay classes[/tag] by handing out flyers and engaging people in conversation. I asked them if they use [tag]eBay[/tag] and listened to their responses. Some did not use eBay but would like to. Those are the people I want to teach. But a disturbing number of the people in this small California town gave me an answer that was quite negative. They told me that they used to sell on eBay, but it became too expensive and complicated. Many said they also use to buy on eBay, but they had so many negative experiences that they will never go back. Whether the common complaints about eBay are true or not - the perception is growing that eBay is just too much trouble to deal with - and [tag]perception[/tag] is what matters.

What happened to eBay?

eBay was once the darling of the internet. It seemed the sky was the limit for [tag]sellers[/tag] and [tag]buyers[/tag] too. The eBay platform was regularly described as "strictly a venue" by eBay staff. This was in response to occasional complaints about activity on the site, such as Nazi-related items. In the early days, eBay had a very "hands off" approach to buyers and sellers alike. The idea was that this vast marketplace would eventually balance itself. For example, if people didn't like Nazi items, they wouldn't buy them, and the sellers would go away. If a seller cheats a buyer somehow, the buyer would leave negative feedback and eventually the seller would go away. If a person overcharged for shipping, people would decide not to buy from that person. But then things began to change. As the [tag]eBay community[/tag] grew, the staff grew, resulting in a "too many chefs in the kitchen" situation. The characteristics of eBay today, are very similar to the characteristics of the U.S. government. This is part one of a five part series. I encourage your comments below.

Five ways eBay is like the U.S. Government

#1 - [tag]Bureaucracy[/tag]

According to the US Government Printing Office, Title 26 of the United States Code (the part of the [tag]tax code[/tag] written by Congress), and Title 26 of the US Code of Federal Regulations (the part written by the IRS) is a total of 16,845 pages long. One congressman said taxpayers spend over 5.4 billion hours per year trying to comply with these complicated regulations. It's symbolic of the bulky, bloated, Federal government. There are expensive programs added each year, often unneeded and unwanted, by people who are out of touch with the common citizen. In some cases, the most benefits are available for people who put the least into the system. It is confusing and frustrating to deal with. Trying to get answers to a specific problem is near impossible for average users.

Sound familiar? eBay has become a behemoth. The company is far from nimble. eBay has lost its scrappy agility. Sellers have listings ended for reasons that are at best hard to find, and in some cases, not stated anywhere. The rules for sellers are so ambiguous that at times, even eBay staffers can't explain them. Difficulty receiving customer service has been a concern for years. Changes take forever and are often implemented with significant bugs, and with poor timing. Just as with the government, there is a feeling that eBay is out of touch with its community of buyers and sellers. A common perception is that eBay has moved away from the organic balancing of the [tag]marketplace[/tag] and toward "[tag]social engineering[/tag]" of the eBay marketplace.

An example of this is the recent announcement that eBay is now going to tinker with search results, based on [tag]Detailed Seller Ratings[/tag] among other things. This has many sellers up in arms since these ratings are anonymous and tilted in favor of the buyer. Sellers feel they have no comparable mechanism to flag bad buyers. To be fair, eBay has for years allowed sellers to leave Unpaid Item Strikes against buyers who don't pay for items ordered. Multiple strikes can get the buyer suspended. In fact, most sellers won't be hurt by Detailed Seller Ratings, but it's perception. While people seem to hate Best Match sorted search results already, my prediction is [tag]Best Match[/tag] is here to stay and we had better figure out how to it work for us.

eBay won't get smaller. It won't get simpler. It is getting more complicated, not less. Imagine the day when the tax man gets more directly involved in the relationship between eBay and its sellers. That day is coming.
In part two of this series, I'll discuss the similarity between eBay Fees and taxes.

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