Ebay's Controversial New(ish) Rating System Is Kicking Off Small Sellers
There have been grumbles since the policy was implemented in January, but according to a recent article in Business Week, the sellers are becoming increasingly vocal in their frustration. The tightening of the credit markets, drop in consumer spending, and higher fees have fueled the frustration. The biggest complaint centers on the shipping and handling charge, with which many of the smaller sellers are having a difficult time keeping costs down, resulting in 3s and 4s on the ratings. Larger operations such as actual brick and mortar retail stores can offer free shipping and still come out ahead.
Many of the sellers knocked off of eBay's sellers list are finding it extremely difficult to contest these expulsions as a result of eBay's canned e-mail responses and frustrating mazes of automated phone trees. The article cites examples of sellers who wake up one morning to find that access to their sellers' accounts is denied.
Some welcome the harsher policy, believing that the stricter rules boost buyer confidence, creating a more robust commercial environment.
For those who are done with eBay, there are two options: Sign up for the "I hate ebay" communities, or get back to business on auction sites like Shopify, established in 2006 by disgruntled former eBayer Tobi Luetke. Luetke used to sell snowboards on eBay out of his Ottawa garage until he became frustrated with paying commissions and the obstacles to building a community of clients through eBay. Shopify now has 3,000 active sellers.
EBay will, on average, take 15-percent of fees on a sale, prompting many to start calling eBay, "Feebay". The message boards are announcing the end of an era, calling for the head of CEO John Donahoe, who succeeded Meg Whitman in March 2008. You do have other options, like Shopify, Wigix, SeeAuctions, and EveryplaceIsell. Maybe these shopping sites will help recapture some of that early eBay magic. [From: Business Week]
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Reader Comments (Page 1 of 1)
earkt1 said 12:57PM on 10-28-2008
As both a buyer and seller in the eBay network let me remind all those so-called "graders" that this is the US of A and not the Iron Curtain when buying an item. If you find the terms of "sale" unacceptable (that includes S&H) you have the choice of not purchasing the item. This sense of "entitlement" continually surfaces as an issue, let the dynamics of "free market" police itself.
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Kate said 10:42AM on 10-28-2008
Having had a store at eBay for 8 years, I can tell you eBay sucks! They've taken away the ability of the seller to comment about the rating left by the buyer. They even have a box that pops up and tells the buyer.."Rate the seller without fear. The seller can't leave a negative rating". Well... lets pour fuel on the fire and burn the seller to the ground. Why is that necessary to encourage the buyer to rate negatively? eBay over charges and offers no protection to the buyer or seller. Same with PayPal. It's all crap put out by eBay. Use eBay for marketing, list one product here and there, but forego the store! Open a conventional web site and market it. That's what we did and our sales continue to grow. Sellers on eBay are worried about branching off on their own, but you'll find you'll make more money because won't have to pay eBay's huge commission fees or worry about unfair ratings. eBay is time dated.
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STUFF said 10:43AM on 10-28-2008
eBay is a joke now. Why would I pay 1.00 to list something only to have 15% taken out AND another 10-15% taken by paypal? I started selling on eBay about 3 months ago and ended up $5 in the hole after all was said and done, thanks eBay, what a rip-off!
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daniele454 said 10:57AM on 10-28-2008
I started selling on eBay in Jan 2000, I closed my store Jan 2008 and said goodbye to eBay. Ebay is just another greedy company that raises fees to fix things that do not need to be fixed. Have you tried searching lately, it is so annoying to find store inventory! I sell vintage clothes and jewelry and now I make a great living at www.etsy.com and I have my own website.
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Gallonstwotone said 12:28PM on 10-28-2008
Donahoe MUST go!
"Ebay Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO"
http://www.petitiononline.com/mod_perl/signed.cgi?jdonohoe
Read the comments there from ebay's own clients!
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LOIS said 12:33PM on 10-28-2008
Yes eBay is the worst commercial site on the web. It is so frustrating I am quiting their site all together. I have been selling there since 1997 BUT I CAN'T TAKE IT ANYMORE.
How can I ship an item media for $4.00 when it weighs 8 pounds?
They do not allow exact shipping charges anymore.
I am looking for other sites that do not overcharge.
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Dave said 12:38AM on 10-29-2008
I think Donahoe is going to be famous - for being infamous - he's managed to do a great job of developing a negative branding - EBAY is now the company that folks love to hate, word of mouth built EBAY, it'll be the end of them too. Their inadvertant negative marketting has developed a huge momentum - and the company is not suddenly going to reverse trend and skyrocket. I can see all this in future business courses on how not to market. The Donahue Effect may be a good name for the course - his name may even enter the vernacular as a term to describe how galloping incompentence at the top sinks even the biggest ships.
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MellComm said 11:34PM on 11-11-2008
I used to love selling on eBay - but I've given up as of last week. Where else can you pay high rent only to have your landlord tell you your shipping is too high, you have to use their credit card, and they can hold your sales income if they can dream up a plausible excuse?
eBay bites, and the sellers are figuring out that in the absence of the smaller sellers all that will be left are the big Chinese garbage resellers.
Check out some of the new sites to do your Christmas shopping like http://bonanzle.com. I have been selling there for the last few months and everyone is so friendly. Even competitors stop by to say hi and see how things are going via the built in chat boxes in seller's booths! What a concept; real time communication with your customers!
The place to shop this Holiday Season is http://Bonanzle.com !
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midtown said 3:46AM on 11-17-2008
I hope all the sellers who have read this that deal in real antiques and collectibles have checked out SeeAuctions.com. This site has some great art work, toys, coins, advertising items rare glassware and lots of other great items priced for the advanced collector and the new collectors. You do not have to wade though the shi# to find it. Hope to buy and sell you some fun things without all the huge fees. Oh ya you can get paid the way you want. This means more of the lions share for your hard work. SEE YOU AT SeeAuctions.com
Paul in Chi-town said 12:32PM on 12-02-2008
Great piece. Sellers are definitely getting more & more frustrated with eBay's 2008 seller policies that started in January but were not fully implemented until May. I'm not sure if this is the same article that the piece seems to reference but Business Week did an October article entitled the Growing Frustrations of eBay Sellers at http://www.businessweek.com/smallbiz/content/oct2008/sb20081021_503608_page_2.htm
If you are frustrated with eBay's seller policies & still haven't given up on them, there's a petition to pressure & boycott eBay's changes with its seller policies at http://www.thepoint.com/campaigns/boycott-ebay-for-fair-seller-policies if you'd be interested in joining. My mother is a small, at-home seller, but her frustrations encouraged me to sign up and at least try to make some sort of difference with eBay. The petition is challenging the following -- all sellers having a lowered listing fee; a higher final value fee; and no recourse when it comes to fraudulent, non paying bidders as sellers won’t be allowed to leave any negative or neutral feedback for any buyer. I'm trying to help spread the word.
Thanks from a cold day in Chicago.
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