Thursday, December 31, 2009, 7:51AM ET - U.S. Markets open in 1 hour and 39 minutes.
eBay's fall from grace was on stark display at its Live conference in Chicago, which featured a lot of empty seats and irate sellers.
Silicon Alley Insider has all the gory details, and the video accompanying Henry's story offers a 1,000 words on how eBay's changes have alienated its core community of sellers.
Many of those sellers are now using alternatives like Craigslist and/or launching their own websites and bidding for keywords on Google, which is indirectly benefiting from eBay's stumbles.
comScore, meanwhile, is being directly threatened by Google's new system to measure Internet usage. Coincidentally or not, Google's move comes just a few months after the whole "controversy" over comScore's data on Google's paid-click search numbers.
What Eby doesn't get is that it cannot draw a line between buyers and sellers because more than 50% of their buyers are Sellers too! If they beat up their sellers, they are beating up more than 50% of their buyer base. Instead of going through their site and searching out the scammers, the have implemented policies that alienate their honest users. (Buyers and Sellers). Meanwhile, the scammers are having a field-day creating websites that outline how to use the new Ebay policies to extort money and goods from unsuspecting sellers that have the guts to stay. I'm not too concerned about the new feedback policies. I'm hopin' I dont run into too many nasty buyers. But some of the other things management is doing to the site are really scary! Best Match Search is manipulative. PPC Sponsor ads is taking business away from the site. PayPal 21-day hold is just wrong! Partnering with mega-sellers like Buy.com, Sears, and GM and then giving them a special deal on selling fees, and then putting their listings ahead of everyone else's in search is just wrong! Telling the buyers that a 4.0 rating is GOOD, and then suspending or disadvantaging a seller who gets below 4.5 ratings is insane. Posting a pop-up on the feedback page encouraging buyers to leave a negative or neutral for their seller is idiotic. There are more problems here than just a little change in the feedback system. Ebay has created a "Seller Hostile" environment...and remember...over 50% of the Sellers are Buyers too, and they have lots of friends. And, Ebay just doesn't "GET IT."
What Ebay doesn't get is that it cannot draw a line between buyers and sellers because more than 50% of their buyers are Sellers too! If they beat up their sellers, they are beating up more than 50% of their buyer base. Instead of going through their site and searching out the scammers, the have implemented policies that alienate their honest users. (Buyers and Sellers). Meanwhile, the scammers are having a field-day creating websites that outline how to use the new Ebay policies to extort money and goods from unsuspecting sellers that have the guts to stay. I'm not too concerned about the new feedback policies. I'm hopin' I dont run into too many nasty buyers. But some of the other things management is doing to the site are really scary! Best Match Search is manipulative. PPC Sponsor ads is taking business away from the site. PayPal 21-day hold is just wrong! Partnering with mega-sellers like Buy.com, Sears, and GM and then giving them a special deal on selling fees, and then putting their listings ahead of everyone else's in search is just wrong! Telling the buyers that a 4.0 rating is GOOD, and then suspending or disadvantaging a seller who gets below 4.5 ratings is insane. Posting a pop-up on the feedback page encouraging buyers to leave a negative or neutral for their seller is idiotic. There are more problems here than just a little change in the feedback system. Ebay has created a "Seller Hostile" environment...and remember...over 50% of the Sellers are Buyers too, and they have lots of friends. And, Ebay just doesn't "GET IT."
I am an 3 year e-bay power seller .I am also a buyer as well,e-bay and pay-pal SUCK,no customer service =Awful!!Pay-pal once told me a sale was complete and to ship the customer,so we did.Then a few days later they took the money out of my account because they they said the customer had somehow used someone elses account to buy the item,they made this mistake,not me.I lost the money from the sale as well as the item which was never returned to me.Pay-palis set up too never,ever lose money,they do not care at all about sellers.like I said before Pay-pal and E-Bay SUCK!!!
Yahoo! Finance User, Get a clue! You believe in wealth redistribution, not free markets, it shows. You believe that the buyers labor, that is the effort they put out when making their purchase, gives them an ownership interest in the producers property, (the item they are purchasing), therefore the buyer now has an ownership interest in the goods they buy before they buy. Hence, the prices should all be lower to accomodate that buyers interest in the item being purchased. What about you? Your Choices? When you choose your favorite beer or wine do you choose it because it tastes good, or because the bottle is pretty? Ebay buyers buy because it tastes good!!
The below article was posted on the seller central discussion board earlier today by someone who claims to be inside eBay management… this post was pulled by eBay moments later. I apologize in advance for having to comment in sections as it was a very long post. ______________________________________________________ I posted this at the feedback forum at eBay but it was killed by staff less than a minute later. I should have known. My ID will be toast soon anyway. This was the only other place I thought where my statement might have an impact. Do with it what you will. After Chicago, my only desire is to be heard.
There will be those who will not believe me and I sympathize. I wish the facts were fiction but to deny what I know would be to live in a fairyland of make-believe. I understand that the bulk of this "manifesto" reveals a plot so against the spirit of eBay that it will be dismissed as lie. So be it. I cannot force the world to accept it. All I can do is state the truth as I know it and leave it to you and to your common sense and experience to judge. The deck is stacked against me. Aside from the natural resistance to believe I know that the boards are stocked with eBay's tools. Their goal will be to discredit me. I will be accused of being a "disgruntled", "paranoid", and "emotional" seller. Their words will be specially chosen for effect. That is part of the function of the tools and I am not fazed by it. However, to protect my own identity within the corporation, I cannot be too specific lest the details single me out to the powers that be.
There will be those who will not believe me and I sympathize. I wish the facts were fiction but to deny what I know would be to live in a fairyland of make-believe. I understand that the bulk of this "manifesto" reveals a plot so against the spirit of eBay that it will be dismissed as lie. So be it. I cannot force the world to accept it. All I can do is state the truth as I know it and leave it to you and to your common sense and experience to judge.
The deck is stacked against me. Aside from the natural resistance to believe I know that the boards are stocked with eBay's tools. Their goal will be to discredit me. I will be accused of being a "disgruntled", "paranoid", and "emotional" seller. Their words will be specially chosen for effect. That is part of the function of the tools and I am not fazed by it. However, to protect my own identity within the corporation, I cannot be too specific lest the details single me out to the powers that be. What I intend to reveal is common knowledge to many in the management division behind the scenes.
By the way, the tools are not only the mouthpieces that promote the policies. The psychological tactics employed by the powers that be are far deeper and grander than that. The subtlety of the method is remarkable. The tools come in a wide range of flavors with their own, individual "characteristic" rhetoric. From those who are "for" the policy - and spread various degrees of hostility toward the sellers - to those who are "against" the change - and spread panic and further the divide with the buyers. Both serve the same exact purpose: a manipulation designed to remove the more involved and savvy small to large sellers who will not fit into eBay's future business plan.
First, let me correct the record regarding the concept of sellers extorting positive feedback. While the violation was known to happen, the activity amounted to less than a tenth of a percent of the yearly transactions. Further, it involved sellers whose feedback percentages were below 80%. The absolute majority of sellers did not engage in such practices. Nevertheless, the powers that be could not resist the fact that promoting this notion of feedback extortion as a wide-spread phenomenon would be the perfect cover with which to hide the true intentions of the policy.
The powers that be want to transform eBay into an overstock warehouse venue. A kind of outlet store for the internet much like a cheaper and streamlined version of Amazon. From a strictly business point of view, given the size of eBay and the growing costs of doing business, it makes a certain kind of sense to shift gears. Think about it: when eBay started, sellers were about rare and unique items but here and now the majority of items are common, used counterparts of what can be found new online at retail sites. Truly rare and unique items are sold at real auctions; the "stuff in your attic" isn't glamorous enough and won't keep eBay afloat any longer.
The trend away from the rare and unique to the big box retailer is not new. Several years ago the powers that be noticed that the big "powersellers" were simply listing items that existed in their retail stores or inventories. Thus the concept of "buy it now", "best offer", and "eBay stores" were created. It was the nascent stage of the plan yet to be. Little by little, without the population noticing, the mechanisms required to replicate the average retail storefront were already in place - and with its rise came the slow, steady downfall of the auction format.
Yet outright pursuit of a retail venue would have led to a major problem that at the time could not have been surmounted. The vast majority of people, on and off line, know eBay as precisely the place for auctions of rare and unique items. The sellers and buyers held onto that perception too but in truth their opinion even involvement in new and improved version of eBay is irrelevant by a certain Machiavellian calculation made by the powers that be. As part of the plan, eBay calculated thus: even if they lost the sellers as part of the change, the buyers will be coming back to buy regardless of who or what operated within the retail-outlet venue.
No, it was the stock holders who the powers that be feared. Only the stockholders had the power to change the direction set forth by the CEO and the board. So it became imperative to change the equation. Part of the plan is to devalue the stock gradually so that investors merely dumped the stock as opposed to wanting managerial change ala Yahoo. Then to buy back the stock at lower cost and to such a volume that no rebellion against the powers that be were possible.
By the end of July that phase of the plan will be successful and there est of the plan will be revealed without fear of backlash from those who otherwise would have had the power to pull eBay back from the brink. Indeed, if you believe the current changes are obvious signals that small sellers are not wanted - be prepared - you have seen nothing yet.
So far what have they done? All they have managed to do is silence a seller's ability to warn others about buyers (half of the purpose behind the original idea of feedback), burden you with higher and higher fees, dangle "treats" like discounts while setting the bar of eligibility so high that the rewards cannot be reached. and, by the way PayPal deals with "complaints" leave you vulnerable to fraud. What if worse was yet to come? They know if you do not feel safe that you will not use eBay. The changes that have been enacted only eliminates the small sellers. Meanwhile they want to eradicate the mid-sized seller too. And they want to ensure that both do not return.
For the mid-sized seller the DSR became the tool of choice. The powers that be raised the level of what is a good seller artificially high. No manipulation is required; they know exactly the effect of the policy. This is why buyers are told that 4 is a good score and sellers are told that 4.9 yields discounts and higher listing placements. As long as that fractured point of view exists, eBay does not need to interfere with the DSR as has been suggested, the buyers will be killing the sellers naturally. By August there will be no pretense and the intentions of the new and improved eBay will be clear. The following is only a partial list of the rules that will be imposed. It comes from a memo that circulated within my corner of the managerial department the week before Chicago. I cannot be too specific about certain items and I cannot reveal details of the latest additions without endangering my anonymity.
For the mid-sized seller the DSR became the tool of choice. The powers that be raised the level of what is a good seller artificially high. No manipulation is required; they know exactly the effect of the policy. This is why buyers are told that 4 is a good score and sellers are told that 4.9 yields discounts and higher listing placements. As long as that fractured point of view exists, eBay does not need to interfere with the DSR as has been suggested, the buyers will be killing the sellers naturally.
By August there will be no pretense and the intentions of the new and improved eBay will be clear. The following is only a partial list of the rules that will be imposed. It comes from a memo that circulated within my corner of the managerial department the week before Chicago. I cannot be too specific about certain items and I cannot reveal details of the latest additions without endangering my anonymity.
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Buddy - Tuesday June 24, 2008 06:51PM EDT
What Eby doesn't get is that it cannot draw a line between buyers and sellers because more than 50% of their buyers are Sellers too! If they beat up their sellers, they are beating up more than 50% of their buyer base. Instead of going through their site and searching out the scammers, the have implemented policies that alienate their honest users. (Buyers and Sellers). Meanwhile, the scammers are having a field-day creating websites that outline how to use the new Ebay policies to extort money and goods from unsuspecting sellers that have the guts to stay. I'm not too concerned about the new feedback policies. I'm hopin' I dont run into too many nasty buyers. But some of the other things management is doing to the site are really scary! Best Match Search is manipulative. PPC Sponsor ads is taking business away from the site. PayPal 21-day hold is just wrong! Partnering with mega-sellers like Buy.com, Sears, and GM and then giving them a special deal on selling fees, and then putting their listings ahead of everyone else's in search is just wrong! Telling the buyers that a 4.0 rating is GOOD, and then suspending or disadvantaging a seller who gets below 4.5 ratings is insane. Posting a pop-up on the feedback page encouraging buyers to leave a negative or neutral for their seller is idiotic. There are more problems here than just a little change in the feedback system. Ebay has created a "Seller Hostile" environment...and remember...over 50% of the Sellers are Buyers too, and they have lots of friends. And, Ebay just doesn't "GET IT."