eBay's new broom makes sweeping changes

Stuart Corner
Tuesday, 29 January 2008 23:28

Business IT - Technology

The company is also eliminating fees in the US for its Gallery option to spur sellers to include more photos of the item for sale. To discourage behaviour that causes buyer dissatisfaction, such as charging excessive shipping fees or not describing items accurately eBay will begin decreasing search exposure for the listings of sellers who have high rates of customer dissatisfaction and will begin requiring a safe payment option, such as PayPal or a major credit card, for sellers who have lower rates of customer satisfaction or who sell in categories that have a high number of buyer complaints. As well, eBay will begin increasing search exposure for the listings of sellers with the best buyer satisfaction ratings.

Just before the changes were announced, a report from Wall Street analyst Scott Devitt of Stifel, Nicolaus & Co claimed that as many as 10 percent of eBay listings that close with a bid go unpaid. Devitt said: "The refund process for sellers is cumbersome and the ramifications on non-paying bidders (NPB) mostly non-existent. Feedback is not the answer, as reciprocity limits NPB's receiving the appropriate reputation."

eBay is also setting the bar higher for sellers who aspire to its PowerSeller program. Qualified PowerSellers will receive fee discounts and better payment protection from PayPal.

Donahoe said:. "Sellers that describe items accurately, ship on time, and ship at a fair price will enjoy preferential pricing and discounts on eBay. We think this will significantly improve the buyer experience overall." eBay will update its feedback system "to reinforce healthy, vibrant trading and keep bringing buyers back to eBay, Donahoe said, but gave no details.

The impact of the changes have been factored in to eBay's financial guidance the company issued in conjunction with its fourth quarter earnings release on January 23, 2008. According to eBay's press release, more details of the planned changes and a replay of Donahoe's keynote address are available at eBay's online press room at news.ebay.com . iTWire, however was unable to locate these at the time this article was written.