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Monday, 09 March 2009

How eBay Can Fix Things

I still have hope that eBay can fix things. But they're going to have to do things differently, and not just talk about making changes. I think it was in November that we saw Pierre tweet that he was stepping in to fix things. It's March. I'm trying to keep my hopes up, but I'm not really seeing the change I wanted to see by now.

I think the best way for eBay to fix things is just turn back the clock roughly to 2007. I had a very good year in 2007, as did most of our clients! :)

  • Get rid of Best Match. If we got 100 eBay buyers in a room, and asked them about their experiences, I doubt many (if any) would say it was hard to find what they wanted. Finding wasn't a problem. Real problems on eBay include fraud, slow shipping, sellers who don't follow through on promises, etc... Finding is not the problem, so why are we working SO hard on it. Jeez, even the guy who had something to do with the origins of Best Match blogged that he didn't like where it had gone!
  • So get rid of Best Match. It's gone. Sellers no longer have to scramble to change listings and strategies for unannounced reasons. Shoppers won't be shown sellers whose greatest quality (as of how Best Match is currently tweaked) is that they have a lot of inventory. DSRs are no longer the most important part of the algorithm, which leads me to....
  • Forget about DSRs. DSRs are a binary system of good/bad. 5 stars= good, everything else = so bad eBay could stop you from listing ever again and shut down your business. I still shop by feedback percentage on the assumption that bad sellers will get bad feedbacks. Which leads me to...
  • Let sellers leave negatives OR get rid of feedback completely. If you want to be more Amazon-like, remember that Amazon doesn't encourage conversation between buyer and seller, which means the buyer doesn't really get the chance to threaten the seller. If eBay wants to stop buyer blackmail, just follow through on all communication going through My Messages. Then, if you get a threatening email, you can click a report button, and the buyer won't be allowed to leave feedback at all. DONE. Nobody blackmailed or extorted. Feedback system can stay meaningful and honest.
  • Advertise to bring buyers to the site. In 2008, I saw no ads on TV from eBay while I saw zillions from Walmart, capturing feelings about the economy. eBay could have jumped on that and didn't. Fewer buyers. Sales down.
  • Get back in Google. Ever since eBay and Google broke up, I am seeing very few eBay items come up in Google searches. eBay says they are sending fixed price and Store format items to Google, but when I search, I am mostly seeing Amazon items in search results. eBay needs to fix that because that drop in traffic will help that drop in sales (while Amazon is up in sales).
  • Don't change the View Item page the way eBay is saying that it plans to. Based on the incarnations I have seen of the View Item page, I believe that it will inspire fewer sales. There are too many distractions on it. The only thing that was wrong with the old one was that people didn't scroll down to see shipping pricing. SO FIX THAT and you're done. Don't re-lay out everything. Don't make designers design for a NARROWER space when the whole world is buying bigger screens. Our templates now look like bacon strips on huge monitors.
  • Go back to the old fee structure. eBay is now taking too much of a % of sales. Most sellers can't afford it. In this economy, you need more sellers making more money, or you're putting them out of business. And what do sellers get for their fees? Right now, lots of scrambling and changes and trouble. Insertion fees aren't the problem. Stop lowering those. Insertion fees are a good barrier to entry for people who think they should put 50,000 items from drop shippers on eBay. It's the FVF that needs to come down.
  • Stop with the self-fulfilling prophecies and junk science already. At this point, you have to offer free shipping or you'll be pushed down in search. You have to list things certain ways or you won't be placed higher than page 8 of search results. Whatever eBay wants to hand shoppers they float to the top of search. Then they can say, hey, that's what buyers want because that's what they buy! Well, if you hadn't put it at the top, maybe they wouldn't buy it.
  • Get rid of off-site ads. You used to have one banner ad at the top that we could all ignore. Now, you have ads all over the pages. My question to any website owner looking to put ads everywhere is: which is more important? Keeping people on your site, or giving them lots of easy ways to leave your site? These ads are making it easy to leave eBay, which according to the numbers... people are doing, and in some cases, these ads are competing with sellers. Get rid of AdCommerce (for the third time), and get rid of all the other ads. Here is a good page to take from Amazon... every link on the site should keep you on the site!

eBay was better in 2007. Sure, it still had problems. Seller fraud and fakes needed to be fixed. An imbalance of power in feedback, and how meaningless feedback had become, needed to be fixed. VeRO needed to be fixed. And guess what. These are all still true. But things WERE better because you didn't have Best Match or DSRs making things difficult for good sellers, while being mostly meaningless to shoppers. Now is not the time to play Daily Deal or discussion forum upgrade. Now is not the time to fix things that aren't broken. Now is the time to fix what has been broken all along, and in some cases, is now worse. So we have the old, inherited Meg things to fix, plus the new John things to fix. It's a lot to fix, but it can be done.

I still shop on eBay. A lot. :) I always try buying there first when I am shopping online. And I still have the same % of bad transactions that I did before Best Match and DSRs. So to the buyer, this hasn't helped. These sellers are still frustrating. Clearly, DSRs and Best Match aren't keeping them away from me, so if that was the point, that's failing.

I do NOT want to see eBay try to become Amazon. I think Amazon and Zappos will handle that area quite well. eBay should be the eBay that millions of people loved and were passionate about. Shopping on eBay was fun and exciting! It can be that again.

I believe in Pierre, even if I didn't believe in anybody else at eBay. I believe in Pierre because people are basically good, and you can't be that into caring and charity, and not want to see this fixed. You can't watch your stock price drop below IPO price and be less than 1/3 of what it was in late 2007, and not want to do a lot to change it.

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Comments

I agree with bringing back TV ads, they are still very powerful.

Do keep DSR's, just don't make decisions to sellers based on it, keep it as a valuation point to the buyer.

Keep feedback as is, I agree with eBay on this point since all the buyers have to do is to pay, then there is no need to have negative feedback for any other reason.

And I think Pierre is too busy going to France or with his network or new projects!

Nice article by the way, I like the "down to the point" posts.

With regards,
Alex,
http://www.GuruOfSales.com
http://www.WAHOL.com

Hi Deb,

This is very good, thanks! We've discussed Best Match and you know I think it's #1 on this list. I'll add something more to that though -- on Amazon we're looking for items with specific titles such as movies, books, music. On eBay, we're searching more generally, at least I am in the collectibles categories. For example, I recently (made the mistake) of searching for a specific magazine issued in 1909. When I log into eBay now it's customized, for some strange reason, to show me collectible coins from 1909. I have never bought, nor searched, for coins on eBay. I'm assuming this is one of their trusty algorithms in action.

Agree about the TV ads being missed. It's popular right now to call the old forms of advertising dead, but in the case of a company who has alienated such a large number of its old customers and in dire need of some new blood, television offers an opportunity to put themselves in front of a very general portion of viewers--I don't think eBay needs super-targeted ads right now, I think they need to make themselves aware to this general consumer all over again.

I don't feel strongly enough about the FVF to take issue, though I'll say this--they're high enough where eBay has kind of reached a ceiling with them. Any higher and you're really stepping into an unreasonable fee structure. If third party ads on the site can keep the current upper limits of FVF in place, then I think they might be a necessary evil.

And that said, I have noticed in both my shopping and my own pricing, lower up front costs combined with higher FVF leads to higher prices. How could it not? Is this a good thing for the buyers eBay has been working so hard to please?

On DSR's I agree, but again, I'm not too concerned. Rather than being an evil I think DSR's are a redundancy. Whether this leads to the more effective positive/negative rating system being completely removed or not I think it's pretty obvious that both rating systems serve the same purpose. I don't think buyers are over-thinking their service from sellers much more than leaving either a 5 when they're happy or a 1 when they're super-pissed. I'll occasionally leave a 4 myself when I'm left with a little bit of a bad taste, but I don't see too much use for the 2s and 3s.

You're the designer, so I'll leave the look and feel stuff to you, but I'll say this as a user--any design examples I've seen from eBay involved a tabbed structure scares me. I don't immediately notice the tabs, so I know less savvy eBay users will completely miss them. Whatever they settle on I do think it's important for all of the information to appear on a single non-tabbed page.

Tabs are good in your internet browser because you're aware of them--you put them there. When they're presented to the user I just feel they have no way to know to look for them.

Thanks, Cliff

(I'm glad that commenting is working again!)

I have had PLENTY of reason to leave bad feedback for buyers, so I disagree that the only thing a buyer has to do is pay on time.

To me, a buyer also has to NOT blackmail me or try to extort things. A buyer has to go by my policies, so if I say no returns or exchanges after 15 days, the buyer should NOT be trying to return the item 2 months later.

There are many unreasonable things a buyer can do. Judging them just on payment speed may not be the total picture of the experience.

Hi Deb,

I think the questions should be "what broke eBay". Before the changes, eBay was already sliding downward, and these changes are a reaction to that

So the question really is. What changed? and I have a top three that I think really impacted.

1. Users were smarter. Using search engines to find product
2. Plethora of commodity items. Might have taken away the "uniqueness". Automation of 10,000s of listings.
3. Depersonalization - Web 2.0 is all about connections. eBay is all about severing the connections. In the beginning it was "sure go ahead and sell another to 'your' customer. Overtime it has evolved into eBay "owning" the customer. This came long before 2007.

I think those are my top three of what broke originally.

Crystal

Hey, Crystal. Those are also great points.

eBay dumping events and community staff is about disconnection, which seems really bizarre given how successful Zappos is partially BECAUSE of how it connects to people. You'd hope companies are learning from that!

I shop a lot, and I haven't been turned off by the amount of commodity items. I am more turned off by people who have heaps of items, but didn't take good pictures, write decent descriptions, or know anything about their product! :)

I think users are smarter. I've been saying for YEARS that buyers are getting more and more savvy, which is why we have to keep improving how listings look and read. You're more likely to sell from a listing we design than a listing you made 5 yrs ago that you keep adding to... or clicking "sell similar." So standards are raised.

I always compared that to how in the mid-90's you might buy from any website that offered something for sale because buying on the web was new and exciting. But then you developed standards... you wanted to buy from CERTAIN sites that shipped when you wanted, how you wanted, and took the form of payment you wanted to use.

So I agree that shoppers are more savvy, which doesn't explain why eBay is trying harder to show them what eBay wants them to see, rather than what they want to see. I ALWAYS re-sort Best Match search results to "price: lowest," and start looking at feedback % and scores.

I have contacted ebay about sellers being able to leave negative feedback to buyers. Now I consider myself an honest person and hey if somethings gone awry I'll work it out with the buyer. But when a buyer informs me they have recieved a broken item and I request a picture before refunding their money and they don't send a picture just went right off to feedback and laid out bad feedback into which I clicked on positive as thats the only way one can defend oneself and typed this claim was never proved as not photos were sent. I have had people send me pictures on a broken item and it wasn't even close to what I sold maybe the color but not the same design. This buyer did'nt want to return the unbroken items but wanted her money back. Ok so at this point I've had enough and start a letter to ebay on how Sellers should be able to leave negitive feedback like the buyers do, And You ask us to be honest when leaving feedback on buyers kind of hard when we have Positive and will leave feedback later. I still have the return letter from Ebay. It was more or less in favor of the buyer ( Ebay was trying to be polite towards me but defending the buyer no matter what their behavior was ) And if sellers started leaving bad feedback against buyers business would be poor. In the meantime I'm getting undeserved bad feedback by some slick trick buyer who either wants their cake and eat it too. Paypal defended a buyer even after I sent a copy of my add a picture of the product a picture of the box I sent out which showed no signs of opening a picture of the item and she still won. It's still the old scenario the customers always right even if it means burning the seller at the stake when it's based on lies. Even when the proof is there The customer wins. I've become a very strict seller as I have to protect myself from vultures after all the seller is the small prey and the buyer is the prediator. ( please understand I have made some really great customers) But there are some dishonest buyers behind the scenes of Ebay.

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