Entries from May 2008 ↓

A Warning for eBay Sellers: Have a Second Account

SB NOTICE: eBay Registration Suspension

If you see that dreaded header in an email, you are in for some trouble. If your eBay account was suddenly suspended, what would you do? Try to call eBay and work it out? Forget that. Could you afford to wait out the suspension and get started again? eBay rightfully suspends accounts every day for one reason or another, but they make mistakes too. Here's how you can prepare.

First, I'm not going to talk about whether a user deserved suspension or not. I don't want to hear that I'm telling the bad guys how to get around the system. They already know how. This is for the victim of the eBay "system" or an otherwise honest person that made a dumb mistake. Due to unmerciful decisions of robots, innocent people have lost their jobs. It's another case where eBay throws out the baby with the bathwater. I am in no way suggesting anyone break eBay's rules, I am suggesting you prepare yourself for the unexpected. Just because you follow the rules does not mean it won't happen to you.

Have (at least) Two eBay Accounts

eBay allows multiple accounts. If you only have one account, open another one right now, and use it. You'll need to use an email address that is different from your first account. If possible, you should also use a different credit card and checking account. Try to make sure your second account is in no way linked to your first account. The less linking the better.

Once the account is active, use it to buy and build up some feedback. If you can gradually get it up to 100 or more, the better you'll be. Use it for personal items if you wish. But use it. Grow your feedback and keep it 100% positive. If you only use it to buy, you can't get any negative feedback anyway.

One rule: Do not EVER bid on one of your own items between these accounts.

Back Up Your Inventory

If you ever have an account suspension, you will not be able to retrieve your listings. You will lose everything - unless you have a backup. If you're suspended, you won't have access to your My eBay page. You won't be able to send or receive messages from other members, you won't be able to see your sold items that still have to ship, and you won't be able to see any of your inventory. Why would you need those things?

Well, if your listings are wiped out you may want to relist them once you are back in good standing. (Or, if you want to make use of that second account, relist them right away.) I will say for the record, if you are suspended, eBay says you may not use eBay with ANY account. Of course if you have a backup account, in your spouse's name for example, he or she could begin selling on eBay right away if you have backed up your inventory.

As I was saying - you need to back up your inventory. There are a few ways to do this but I've found the best, and easiest for me, is Turbo Lister. Download Turbo Lister and set up a user account for both of your eBay accounts. Once that's done, in the navigation bar at the top of the page click "Tools" and "Synchronize Items". This will import all of your current items from eBay.

Make sure you're in the "Inventory" view (see the menu panel at the left of the page). Highlight all the items by clicking the top item, holding the Shift key, and clicking the bottom item. Then, in the top navigation bar click "File" and "Export Items". You'll be asked which type of file you want to create, select Turbo Lister and name the file and save it to your computer.

Now you have a complete backup of your inventory, including the information from every field of the Sell Your Item form. You should update this regularly so if you have to use it, you will have the most up to date version of your inventory.

Relisting Your eBay Inventory

Like I said before, you can use this backup file to restore your listings after your suspension is over. You can also use this file to move all of your listings to another eBay user ID. You do it right through the Turbo Lister program.

If you're simply restoring your listings after a suspension, skip the next step. If you would like to list your items on another user ID...

Click "File" again, then "Change User...". You should now log in to your second account and select "Inventory" in the left panel. Click "File" then "Import items... > From File". Select the file you saved earlier with your entire inventory and import ALL fields.

Voila! You now have restored your listings. Now you'll just have to upload them. This saves you a tremendous amount of work trying to recreate all the listings eBay ended and erased.

Download Turbo Lister for FREE!

Sometimes Even Backup Accounts Won't Work

There are some situations where even backup accounts won't work. If this is your second, or third suspension, you may really be hit hard. Any account linked to the suspended account may be suspended too. That's why you want to keep the accounts separated as much as possible.

If you are a fraud, or scammer, and you do your dirty business from your Mom's computer, there is a good chance that anyone with a matching IP address will be suspended as well - even though they have no knowledge of your shady deals.

Reason for a Second eBay Account - Part II

If you are an Education Specialist or a Trading Assistant, you must maintain an average feedback rating of 98%, keep your account in good standing, and sell four or five items per month. If the recent feedback changes disqualified you from these programs, or if you receive a suspension, etc., you can switch to a healthy "back up" account and re-qualify.

You wouldn't go on a trip without a spare tire right? Don't sell on eBay without a spare account.

Popularity: 20% [?]

Another one bites the dust

Another one bites the dust

Posted using ShareThis

Popularity: 7% [?]

12 Points of Comparison – eBay and Amazon

12 Points of Comparison – eBay and Amazon

Think of any situation, and there are likely pros and cons. The same is true when deciding whether to expand your sales to Amazon.com. The fact is, neither eBay nor Amazon can claim to be the best across the board nowadays.

Many eBay sellers have wondered if it’s really worth selling on Amazon. Some feel there are too many rules and it wouldn’t be worth the effort. Some have asked for a point by point comparison between the two sites. I’ve chosen a dozen points of comparison that may help sellers make a decision.

  1. Fees
  2. Format (Auction vs. Fixed-price)
  3. Community
  4. Stability
  5. Feedback
  6. Branding
  7. Photos
  8. Taxes
  9. Average Sale Price
  10. Payment Methods
  11. Return Policy
  12. Shipping

1. Fees

Most sellers agree that fees between the two sites are almost a wash. Especially when you consider that you pay for every item to be listed on eBay whether it sells or not. When you consider unsold items, time spent relisting items, and time spent dealing with unpaid items, my opinion is Amazon comes out ahead.

Amazon collects the payment for the seller, and deposits the funds into your checking account. There are no fees for this, while PayPal fees are substantial. If eBay moves to a PayPal only model in the U.S., they can increase fees for collecting payment at will.

Advantage: Tie
 
 
2. Format (Auction vs. Fixed-price)

eBay popularized the auction format listing. Amazon failed at auctions and only offers fixed-price listings. Which is best?

For collectibles, auctions are the best way to get market value. eBay is better if you are running an antique store online and want the best prices, and shoppers looking for unique items.

But most businesses, do not deal in collectibles, they sell “practicals”, commodity items that people want to buy and get on with their day. Buyers can readily find these items, and buy online for convenience. It’s easy to set a fixed-price for these items.

While Amazon is the fixed-price king, eBay is moving in that direction by downplaying auctions and encouraging fixed-price listings. The advantage is in the buyers. The Amazon buyer is more affluent, and pays a higher average price for products.

Advantage: Auctions: eBay
Advantage: Fixed-price: Amazon

 
 
3. Community

eBay sellers are very involved with eBay buyers. The transactions can be extremely interactive. Amazon buyers and sellers rarely interact. The Amazon buyer tends to expect high customer service and they don’t expect to have to ask if an item has shipped.

Because of the higher interaction with customers, eBay sellers have to spend more time per transaction. Amazon transactions take less time.

Advantage: Amazon
 
 
4. Stability

Online retailers rely on the stability of their chosen platforms to operate smoothly. Changes cost time. Sellers have developed systems that allow them to list, sell, and deliver items. When rules change, or things don’t work, the systems break down and profit is lost.

Amazon has had very few major changes in the past year. Even though there are some restrictions, they generally stay the same, and are enforced consistently. When changes have been made, they tend to stick and sellers can adjust.

eBay has had major changes over the past year, including Feedback, fees, digitally delivered items, search results, Detailed Seller Ratings, eBay’s affiliate program, and more are to be expected. Sellers have been greatly affected in real and perceived ways. Some changes have been rolled out, only to be reversed causing even more consternation among sellers.

Advantage: Amazon
 
 
5. Feedback

Both eBay and Amazon have a feedback system allowing buyers and sellers to record their impression of a transaction. Both sites allow buyers to leave negative comments for sellers. Both sites allow sellers to leave only positive comments for buyers.

The eBay culture has given much more weight to feedback than their Amazon counterpart. Amazon buyers can see the seller’s feedback score, but tend to overlook it more readily than eBay buyers. Amazon’s A-z Guarantee may have a bearing on this by making the buyer feel more protected when purchasing an item.

Amazon does not “disadvantage” sellers, as eBay does, by moving them down in the results when shoppers perform a search. eBay does this by considering the seller’s feedback score and making them less visible to shoppers, rather than letting buyers make the choice themselves.

Advantage (especially for sellers): Amazon
 
 
6. Branding

Amazon restricts sellers from reaching out to buyers and marketing to them. Traditionally, this has been an advantage to eBay since eBay allowed sellers to link to a site off eBay from the seller’s About Me page.

Recent changes at eBay have virtually eliminated the ability to use eBay as a lead generating tool for off-eBay business. eBay has all but forbidden any outside links from any eBay pages including custom store pages, and About Me pages. This has effectively neutralized eBay as a “branding” tool.

Advantage: Tie
 
 
7. Photos

eBay sellers have always struggled with photos. How to take good photos, how to get the photos to show up on eBay, how many photos. Each item, no matter if it’s exactly the same as another, gets its own photo on eBay.

Amazon is different. An individual product gets one photo, and one description page, and all sellers use the same page.

Generally, the first photo posted on a given product, is the photo everyone will use. Some sellers don’t like the idea of other sellers using their photo. But if “one photo fits all” for a particular product, it’s pretty likely that product is a commodity product. Not many photos are needed.

As an Amazon seller, I absolutely love the fact that I can list 20 items without shooting a single photo. It saves a ton of time.

Amazon buyers will buy an item without a photo. They know that the image they see is generally just representative anyway.

Advantage: Amazon
 
 
8. Taxes

Marketplace sellers are responsible for the sales tax on any items sold on Amazon.com, and if necessary, they generally add this cost into the price of their items. This is a pain for Amazon sellers who are running a business.

eBay provides a mechanism in the Sell-Your-Item form to collect the taxes in addition to the sale price. This way the taxes don’t eat into the seller’s profits.

It seems Amazon could add a tool like this to their process quite easily for their Marketplace sellers and I wouldn’t be surprised to see it in the future. But until that happens, I’d say…

Advantage: eBay
 
 
9. Average Sale Price

Amazon buyers have been shown to be more affluent, and more willing to spend more on similar items. eBay buyers tend to look for bargains, and are willing to wait through a seven-day auction to save a buck.

As a seller, I’ll pick the buyer that is willing to spend more. I have actually used eBay to source products at rock-bottom prices, then sold for good profit on Amazon. Amazon buyers often don’t even look on eBay, and they ultimately pay more.

Advantage: Amazon
 
 
10. Payment Methods

Amazon sellers must use Amazon Payments to accept payment. That’s it. Amazon collects the payment, and deposits it into your bank account twice per month (more often if you choose). They collect and deposit the funds with no fees added. eBay sellers can accept PayPal, money orders, cashier’s checks, or cash (in person).

eBay seems poised to require PayPal payments on all transactions. If that happens, it will significantly affect many sellers. If you sell an item for $500, you may now accept non-PayPal payments and keep most of your money. If PayPal is required, you will fork over 2.9% + $.35 ($14.85) in PayPal fees.

Amazon sellers do not have to send invoices, payment reminders, or track unpaid items. If Amazon cannot collect the payment, you don’t have a sale, and your item is still listed on their site. eBay’s system is simply more work, more time, and ultimately costs more to manage as a seller.

Advantage: Amazon
 
 
11. Return Policy

Some eBay sellers fear Amazon because of their obligatory return policy, called the A-z Guarantee. This guarantee allows the buyer to receive a full refund if the item is “materially different” from that described, for up to 90 days. Amazon will usually side with the buyer. Sounds pretty tough.

The eBay seller is free to fight it out with buyers with a dispute resolution. This could ultimately result in negative feedback for the seller. They are not required to offer a refund. If eBay forces sellers to use PayPal for payments though, your funds could be held or you may even receive a charge-back against your account. It’s basically the same difference, but the eBay / PayPal route is a lot messier and time consuming. If you have a buyer that is determined to get a refund, they’ll generally figure a way to get it.

Simply based on the time consuming mess the dispute resolution process is, I’m saying…

Advantage: Amazon
 
 
12. Shipping

eBay sellers have long looked at shipping charges as a small revenue stream. They bump up shipping prices and skim a little for themselves to cover shipping supplies, labels, and pixie dust. (Okay, I added the pixie dust. But there must be some magical ingredient included to justify the extra charges.) The fact is, many sellers have turned this legitimate charge into a way to avoid eBay fees.

eBay has now begun penalizing sellers who charge above average shipping amounts by lowering their visibility in the default search results. They are even giving breaks to sellers who offer free shipping, in effect hurting those sellers who cannot afford it.

Amazon gives sellers a “shipping credit”, based on an item’s category. This does not always cover the full shipping amount, but usually does. The amount is fixed by Amazon. You cannot ask for more from the customer, and even if the shipping credit does not cover your shipping costs, you must ship the item. Since the shipping credit is fixed, it can be figured in when setting your price.

Which is better? I like to have control over my shipping. But if a seller is careful, it’s pretty easy to figure in the shipping credit on Amazon and not lose money. Even if there is a loss, it’s minimal.

I have found items I wanted on eBay, only to leave because of the outrageous shipping charges. ($1.99 item + $10.99 shipping for a cell phone cover.) I go straight to Amazon, because I know shipping is standard and I won’t feel ripped off. How many other buyers do the same? I’ll take those buyers…

Advantage: Amazon
 
 
Summary

There is no question eBay is best for some items, while Amazon is best for others. But the overlap is incredibly large. The vast majority of items that sell on Amazon will also sell on eBay, and visa versa.

The important thing to remember is the shoppers are different. While you and I may shop on several sites, many Amazon shoppers are very loyal to Amazon and won’t even visit eBay. Some eBayers feel it would be a sin to shop on Amazon. By selling on both sites, you are potentially getting millions of additional eyeballs on your products.

If you are avoiding Amazon because you think there are too many rules – take a look at eBay’s User Agreement. eBay is moving closer to Amazon’s model, in many ways. Like it or not, this is the wave of the future. Will you be ahead of the game, or will you be playing catchup?

Take a look at my eBook, "Selling on 'the River' - The eBay Seller's Guide to Amazon.com"

Popularity: 34% [?]

eBay: The Global Economic Democracy?

eBay Book markerBack in 2001 eBay handed out a few little goodies to their employees. This book marker was one of them. The same day, we also received a book called "for the people". Full of stories from happy eBay sellers as well as a page from Pierre Omidyar, eBay's founder.

In light of recent events at eBay, I wonder if they feel they are holding to the "core purpose" and their "vision for the future"? Have they earned the title of "a global economic democracy"? Or have they abandoned these ideas? I think it's interesting how much these ideas lean toward the seller, and that eBay is a marketplace.

They have gotten so involved in the transaction now that these ideas seem like ancient history. I remember years ago when they agonized over whether to allow Nazi items on the site. It was so agonizing because they were making a moral judgment after demanding to be recognized as "just a venue". If sellers and buyers had a problem back then, eBay's line was typically that it's between those two parties and eBay could not get involved. "We just provide the marketplace."

I also found it interesting in Pierre's page of the book he mentions the member "experience".

A member's experience wasn't dependent on their interaction with us, but more on how they interacted with on another.

Seems that interaction is becoming more and more difficult, because eBay keeps getting in the way. Pierre goes on to say,

I was thrust into the role of communicating the values I believed in, and setting the tone for those interactions. That's actually where the core values for the company come from - basic ideas about people treating each other fairly and equally, respecting individuality, believing that everyone has something to contribute, and trusting that an honest and open environment can bring out the best in people.

eBay as we knew it is over. They have become strangely paranoid. Disallowing links to the outside world, trying to control sellers with smoke and mirror discounts based on shipping charges, and rumors of a PayPal only policy.

Does that sound like a global economic democracy? I did a search for a list of all the countries in the world on Wikipedia, then I looked for the ones that felt they had to tell the world they are a "democracy" by putting in their country's name. Here's a short list:

  • Algeria - People's Democratic Republic of Algeria
  • East Timor - Democratic Republic of Timor-Leste
  • North Korea - Democratic People's Republic of Korea
  • Laos - Lao People's Democratic Republic
  • Western Sahara - Sahrawi Arab Democratic Republic

Not surprisingly, these countries are not known as bastions of freedom.

Then there's one that is no longer around. They clamped down on people who tried to stay connected with the outside world. They even shot their own citizens. They built a wall to keep people in, but ultimately, people figured out a way to leave, and the country melted away. It was called the German Democratic Republic - otherwise known as East Germany.

Popularity: 8% [?]

eBay Education Specialists Get 60-Day Grace Period

Individuals who teach people how to use eBay got a little break today. Education Specialists are the people trained by eBay to teach local classes and individuals how to sell on eBay. They basically teach the courses once offered nationally by eBay University. Among other things, these individuals must have at least 98% positive feedback to be in good standing and qualify for the program.

Due to the upcoming implementation of eBay's new feedback changes next week, feedback scores are about to change. The change will knock some out of qualification, with an adjusted feedback score of less than 98%.

American Research Institute through PowerU runs this program for eBay. In their email to Education Specialists today they said:

As a result of these changes, you may see a change in your Positive Feedback Percentage that could possibly impact your standing in the Education Specialist Program. Note that in order to maintain a valid standing in the Program, you must maintain a Positive Feedback Percentage of 98% or higher.

In order to provide some of you with the opportunity to increase your Positive Feedback Percentage, we are implementing a 60 day grace period for existing Education Specialists. On July 21st, we will re-instate the 98% Positive Feedback portion of the validation procedure and you may be suspended at that time if your Positive Feedback Percentage has gone below 98%. However, we do run the validation process every day, so you will be reinstated once you have reached the minimum criteria.

It really is a shame that these individuals who bring new sellers (and often buyers) to eBay are getting caught up in this. In an effort to "improve the buyer experience" there will likely be many less:

  • Powersellers
  • Education Specialists
  • Trading Assistants

Evidently improving the buyer experience may mean that the buyer goes somewhere else to buy.

Popularity: 10% [?]

eBay’s Mutual Feedback Withdrawal to be Withdrawn

In an announcement this morning eBay's Brian Burke reviewed the upcoming changes to the eBay Feedback system. The main change is that sellers will only be able to leave positive feedback for buyers, and that change becomes official on May 19th.

While a few minor adjustments were covered in the announcement - buyers must wait seven days instead of three days before leaving negative feedback - there was a new one that may upset some people. To quote Brian:

We mentioned that we'd be aligning the Mutual Feedback Withdrawal process with the new system. After much consideration, we've made the decision to remove the Mutual Feedback Withdrawal process. The reason is that – under the new rules - it opens sellers up to extortion. As part of this decision, Mutual Agreement from third-party Feedback mediation services, such as SquareTrade, will also no longer be accepted.

Obviously, if sellers cannot leave negative comments for buyers, feedback withdrawal cannot be mutual. But why not leave it open for recalcitrant buyers to withdraw a negative comment? Many situations are resolved after a misunderstanding, or even after a comment is left accidentally and the buyer may want to change their mind.

The stated reason is that sellers are opened up to extortion. But it seems allowing only the buyer to leave negative comments opens the seller up for the same extortion. Buyers can say, "Give me XXX or I'll leave a negative comment." just as easily as "Give me XXX and I'll remove the negative comment I left."

Anybody worried?

eBay is about to open up feedback all the way back to 1996 and tinker with it. They will be giving credits for old repeat buyers, wiping out certain undeserved negatives, etc. Given the latest track record with Best Match, eBay Partner Network, and other new roll-outs - is anyone just a little concerned?

See the entire announcement here.

Popularity: 28% [?]

eBay Live! 2008 will be the last until 2010

Lorrie Norrington, President, eBay Marketplace Operations announced today that eBay Live! in Chicago this year, will be the last one until 2010. She said management wants to get more up close and personal with the eBay community.

To quote her exactly:

In 2009 we are focusing our energy on smaller venues to facilitate more face-to-face interactions with our customers and community. While I can’t yet name all of the places we’ll be visiting in 2009, I can say that we intend to spend more quality time with more of you in 2009 than we have in recent memory. So while eBay Live! will not be held in 2009, we will be back with eBay Live! on August 12-14, 2010 in Orlando, Florida at the Orange County Convention Center.

Okay, I'm going out on a limb here and predicting this will be the last eBay Live! - and although there may be another event called eBay Live! this will be the last one in it's current form. With every other thing changing about eBay, it doesn't make sense they would have an event:

  1. for sellers
  2. for "flea market" people
  3. for people who like crazy outfits and collect pins

I think the days of the homey, aw-shucks eBay seller are over. Any thoughts?

See the entire announcement.

Popularity: 11% [?]