eBay Feedback System Negative for Sellers

Self-Policing Advantage in Buyers' Favor

Oct 30, 2008 Max Sherry

In May, eBay reformed its feedback system by prohibiting sellers from leaving negative feedback for buyers. eBay President Bill Cobb believes the change was necessary.

The quid pro quo aspect of eBay’s feedback is long gone and many sellers are left feeling alienated. The new change: sellers will not be able to leave negative or neutral feedback about buyers but they are encouraged to leave positive feedback. The changes were put into effect in May and reviews have been mixed.

Reasons the Feedback Reform Works

• In a February 6, 2008 ars technica article entitled "eBay's New Feedback Policy: No Real Feedback" Eric Bangerman cited that eBay’s data found that abusive sellers are eight times more likely to retaliate against negative feedback.

• Buyers fear leaving honest, accurate feedback if they feel they will receive negative feedback in return. For instance, if a buyer purchases a “new Dodgers hat with tags” and receives a “sweat-filled Giants hat with no tags” then he should be able to proclaim that the seller is a fraud. Under the expired system, that buyer may have ended up with negative feedback.

• According to eBay.com, seller protections have been installed to refund seller fees in deadbeat buyer cases. Furthermore, eBay states it will remove negative or neutral feedback if the buyer bails on a transaction. Feedback cannot be left for three days until the transaction is completed to give the seller proper time to send the item(s) purchased.

• eBay does have a “Feedback Abuse Policy” in which there are instances when feedback can be removed if certain criteria is met. The policy deals with removing abusive feedback.

• Sellers have no leverage in a transaction. What if a buyer decides not to pay for an item or if he delays payment for an extended period of time? Should that be mentioned in his feedback?

• Many item descriptions stipulate that an item must be paid for in a due time period. In today’s economy, a seller may rely on money made in an eBay transaction just as in any other business transaction. According to eBay, “bidding is binding.” Yet buyers can purchase an item, decide they paid too much for it or do not want it and leave. They can create a new eBay account instantly under a new alias and start bidding again.

• Final value fees, approximately 10% of the final value of the product sold, are debited out of a seller’s account upon a sale. Claims against vindictive buyers are lengthy.

• Sellers cannot leave honest, accurate feedback about buyers.

In a January 29, 2008 message on eBay's "General Announcements", Bill Cobb, president of eBay North America, explained his justification for the change. "The current feedback system isn't where it should be," wrote Cobb. "Today, the biggest issue with the system is that buyers are more afraid than ever to leave honest, accurate feedback because of the threat of retaliation. In fact, when buyers have a bad experience on eBay, the final straw for many of them is getting a negative feedback, especially of a retaliatory nature."

Analysis of Feedback Changes

The new feedback policy clearly favors buyers. eBay may be looking to attract more new buyers rather than protecting its long-term sellers. Through the feedback system, buyers can successfully prosecute sellers without a chance for a rebuttal. Mr. Cobb’s assertion that buyers are afraid to leave honest feedback is valid. However, is it fair that sellers cannot do the same?

The copyright of the article eBay Feedback System Negative for Sellers in Internet is owned by Max Sherry. Permission to republish eBay Feedback System Negative for Sellers in print or online must be granted by the author in writing.

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Comments

Nov 6, 2008 5:50 PM

Guest :

Anyone considering investing or putting time into future sales may want to take a look at the aggressive, flawed policy’s they have put in place, there are little to no direct policy as there has been. Sellers, buyers and investors wouldn't be leaving if there was any good reason to stay.
Some of E bay's management ideas were good, however, has done a poor job or implementing the new changes and communicating to its buyers, sellers only after a few months of effect, some loosing there e bay business because of improper, unmonitored data, is still learning and it seems no one knows the answers even at the top account managers level. Its buyers do not realize that the DSR DETAILED SELLER RATING, the 5 stars under the feedback rating is not based on a 100 point scale like every other system in the free world. For example, from 1 to 5, 1 is poor, 3 is average and 5 is excellent. With e bay, 4,5 is average and 5 is good, I am glad they didn't have my math teachers in Collage. So many times buyers rate a 3 when they don't realize they are giving the seller a unacceptable rating that could potentially suspend his/her account from e bay as so many has been suspended in the last 3 months because of improper data that has been now used as the bible of e bay to rate seller performance. It should also be noted that a flaw in the data of the 5 star DSR is that if a customer is happy, they fell that leaving positive feedback served its purpose and they have caused a positive vote to the seller, e bay has not educated the buyer, so they do not leave a star rating at all, and are not required to and a large % do not, but leave a positive feedback as it is not required. But the buyer who is mad and is leaving hasty feedback will be more than motivated to leave a 1 or 2 for all stars. For this reason, good sellers offering great service and products are being suspended from e bay by record numbers, this cuts the life cord of the seller as well as core business at e bay and the reason buyers come to the site and investors invest in the company.

Ebay may have ruined their market flair for both buyers and sellers forever. Too many restricting rule changes, increased charges, paypal demands, seller ratings. This has ultimately destroyed their bottom line.
Many sellers, buyers and investors alike have a dedicated special interest and hope management changes and ebay will turn themselves around, but it is going to take some quick and correct policy change.

Nov 6, 2008 5:55 PM

Guest :

Buyers and sellers are leaving e bay, this can be proved by http://www.sellerdome.com
It is interesting how the 1500 employee lay off received so much attention, however, OVER 10% of total powersellers were laid off/suspended because of flawed aggressive policy poorly implemented has not had a placement. This is proved by:

http://blog.sellerdome.com/?p=16

This study shows that between 15k-30K e bay powersellers who account for $3000-$20,000 in seller fees paid to e bay each month from sellers. This is the only company separating itself from its long time customers, many, like myself, who has been with the company fatefully since inception and made it a community before new management. This seems a larger story than a simple layoff of e bay employees. Ebay saves money by laying off paid employees, but e bays profit takes a hit by getting rid of partners who contribute to e bay profit. For example: 20,000 powersellers/partners laid off/suspended that account for an average of $5,000 per month seller fees = $100,000,000 each month in seller fees not received by e bay. That is $1,200,000,000 per year in revenue given up for aggressively flawed policy by current management. Figure that on 20% margin and facing the headwinds of a slowed economy. The idea current ebay management had was by getting rid of 10% of its selling partners was going drive back 32% of its buyers, however, that has clearly not been the case, because the policy change was flawed and implemented with such aggression over a short period of time, 6 months total, 3 months aggressively.

Ebay seems to have driven away buyers by this and the new search method that sellers or buyers don't like with no concern of management. The company has managed to drive its investors away in the same motion as stock prices show a drop since new management put in place 6 months ago, before market crash. Ebay management charged its sellers/partners for decline in its core business and seems not to have taken into account the increased competition of walmart, best buy, circuit city and many others putting marketing dollars into the online sector of business. Ebay pushing away its partners, sellers and buyers, is only going to make profit softer and push away investors. With 70% more competitors in the market e bay only dropped 30% seems a strong market hold for e bay and a reason to support its partners in a currently working policy rather than place blame partners.

Nov 14, 2008 9:12 PM

Guest :

Ive been selling on ebay for over ten years and i've received 2-3x more negs since this policy change! Buyers leave negs now for petty reasons and w/o contacting me to try to resolve. Also, I cant even try to debate an issue with a buyer for fear of getting negatives. For example: I had a buyer purchase 4 auctions with a total of 12 bottles of 4oz chemicals. I shipped them all in one box, but one bottle of twelve popped open and spilled on the order. The buyer contacted me to inform me of the problem and said it was no big deal since he just washed off the other bottles + spilled bottle was only half gone... He also wanted to know what I would do to 'make it right'. I offered a credit for one bottle since he had said he might buy more from me in the future. I also said in closing that I was surprised he made an issue of it since most of the order was fine. The next day I looked and got four negatives saying I was rude. I honestly did not mean to be rude and I did offer credit. I was angered by the feedback so I left him positives (my only choice) but said that I would not do business with him and I thought what he did to me was childish, rude and mean-spirited. He reported this to ebay who removed the feedback I left and charged me with a policy violation which restricted my account! Since then Ive received 2 more negatives, one on a two dollar item the buyer did not like and one from a guy who blamed me for shipping to the wrong address (one he gave with the payment he sent me). I think this new rule is a joke because these people probably would have tried to work with me and/or may not have left the negs if they knew I might neg them back. I am leaving ebay after over ten years. I usually sell $1-2K/month scaled down from $3-4k per month in the past due to the higher fees. I can only hope that they will fire some of their executives and get someone in there who used to sell like me. They need someone who knows what its like to try to make a living with all the creeps out there who try to scam you. Its too bad that ebays new system/policies actually help people hurt sellers. Its also too bad that they will no longer allow money orders and checks. It seems like every time I turn around, this company is diminishing my choices. GOODBYE EBAY!

Nov 15, 2008 9:19 AM

Guest :

I have been an eBay buyer since 2006, and have had only one negative feedback, a retaliative one, since that time. I was proud of my record, but felt that the seller should not have been able to retaliate, just because I was justifiably unhappy with the non-delivery/receipt of my item. That said, the positive feedback I've been receiving from sellers since the rule change in May, have less of an impact of truth than before, since sellers are no longer allowed to leave negative feedback. It is also true that, as a buyer, I thought 3 stars meant "average" and 4 meant "good". I didn't know that only 5 stars is seen by eBay as acceptable. It was rare that I gave 5 stars -- it's like giving 100 as a mark as a school grade -- no one is THAT perfect !! Now I know better. If I am happy, I have to give 5 stars, because I don't want to push anyone out of business. I think eBay owes it to both buyers and sellers to spell this fact out.

Nov 30, 2008 10:13 AM

Guest :

I am a very low volume seller on Ebay and even though I'm still 100% positive I strongly want to leave Ebay environment. The fact that I cannot alert other sellers about fraudulent buyers is against any logic.When a buyer bids just for fun, I lose money, insertion fees for good and then wait weeks for final auction fee to be reimbursed.
If there is a strong Ebay competitor on the market, now is the time take over this market. Never been a better opportunity with the vast majority of sellers ready to leave for a fair business partner.

Dec 13, 2008 2:20 PM

Guest :

I got my first negative feedback on Ebay a few weeks ago and in my opinion the buyer deliberately intended to smear my reputation as the buyer was emotionally unhappy with the item I sold to her and LASHED out by leaving a negative feedback before I could respond. In good faith I refunded the buyer the entire amount of the item. Ebay clearly is on the side of the buyer. Not Fair Not Fair.

Jan 6, 2009 7:25 PM

Guest :

Yup, got my first neg yesterday after 4 years of positives. I sent a small paperback book first class with one stamp. I have done this b4 and its arrived fine. Buyer paid 1p for the item and 40p postage so I was making a loss anyway. He then amailed me claiming he'd had to pay £1.31 postage costs because I hadnt put enough stamps on. I apoligised profusely and immediately sent him a cheque refund including the £1.31 he'd had to pay as well. He then emailed me a few days later angrily accusing me of being a fraud claiming cheque had never arrived. As if I would defraud someone for a 1p book after 125 previous positives lol. So I apoligised again and refunded him the 41p via paypal. I also then sent him an extra payment of £1.31 via paypal to cover his costs which I was not required by paypal to do. I did it to be kind so that he would not be out of pocket. I then emailed him thanking him for his custom and saying I hoped he would enjoy the book. The next day I look on and am shocked to see that hes left me neg saying I had deibrately not paid enough postage. This was despite that fact I gone to the trouble to pay him back completely. Ive contacted ebay to try and get the feedback removed but so far they havent responded. Sellers are being put off in droves, especially as everyone is now forced to use paypal which always sides with the buyers and leaves sellers wide open to fraud. Not good.

Jan 6, 2009 7:27 PM

Guest :

Yup, got my first neg yesterday after 4 years of positives. I sent a small paperback book first class with one stamp. I have done this b4 and its arrived fine. Buyer paid 1p for the item and 40p postage so I was making a loss anyway. He then amailed me claiming he'd had to pay £1.31 postage costs because I hadnt put enough stamps on. I apoligised profusely and immediately sent him a cheque refund including the £1.31 he'd had to pay as well. He then emailed me a few days later angrily accusing me of being a fraud claiming cheque had never arrived. As if I would defraud someone for a 1p book after 125 previous positives lol. So I apoligised again and refunded him the 41p via paypal. I also then sent him an extra payment of £1.31 via paypal to cover his costs which I was not required by paypal to do. I did it to be kind so that he would not be out of pocket. I then emailed him thanking him for his custom and saying I hoped he would enjoy the book. The next day I look at my feedback and am shocked to see that hes left me neg saying I had deibrately not paid enough postage. This was despite that fact I gone to the trouble to pay him back completely. Ive contacted ebay to try and get the feedback removed but so far they havent responded. Sellers are being put off ebay in droves, especially as everyone is now forced to use paypal which always sides with the buyers and leaves sellers wide open to fraud. Not good.

Jan 6, 2009 7:28 PM

Guest :

Yup, got my first neg yesterday after 4 years of positives. I sent a small paperback book first class with one stamp. I have done this b4 and its arrived fine. Buyer paid 1p for the item and 40p postage so I was making a loss anyway. He then amailed me claiming he'd had to pay £1.31 postage costs because I hadnt put enough stamps on. I apoligised profusely and immediately sent him a cheque refund including the £1.31 he'd had to pay as well. He then emailed me a few days later angrily accusing me of being a fraud claiming cheque had never arrived. As if I would defraud someone for a 1p book after 125 previous positives lol. So I apoligised again and refunded him the 41p via paypal. I also then sent him an extra payment of £1.31 via paypal to cover his costs which I was not required by paypal to do. I did it to be kind so that he would not be out of pocket. I then emailed him thanking him for his custom and saying I hoped he would enjoy the book. The next day I look at my feedback and am shocked to see that hes left me neg saying I had deibrately not paid enough postage. This was despite that fact I gone to the trouble to pay him back completely. Ive contacted ebay to try and get the feedback removed but so far they havent responded. Sellers are being put off ebay in droves, especially as everyone is now forced to use paypal which always sides with the buyers and leaves sellers wide open to fraud. Not good.

Jan 27, 2009 1:37 PM

Guest :

I am an ebay seller-tarheel-vintage-merchant. I have enjoyed very good feedback until I had a problem with a malicious buyer. He gave me a negative just because I could not find the item I sold to him. I looked high and low. I wrote him an apology, gave him a refund, and even left positive feedback for him. That's all I could do. I got a negative. Ebay said there was nothing they could do. They said it would take a court order to have any feedback removed. Somehow, I just don't belive that.

Feb 25, 2009 6:29 PM

Guest :

A person won one of my auctions and has decided they do not want to pay for it. They've ignored all of my emails. I sent them a PayPal money request and they canceled it. I opened a dispute after not receiving payment and they responded to the dispute immediately saying I only pay with PayPal and the seller does not accept it. I responded in the dispute that I am going to send them another PayPal money request. I did, stating that I had done so in the dispute and I have heard nothing from the bidder/winner. I know if I close the dispute in order to get my FVF credited back the person will surely give me negative feedback. The sad part is even if I don't file for a FVF credit they can STILL leave me negative feedback just because they feel like it. I have 100% feedback and have been selling on Ebay since 1999. I can't alert other sellers about this persons irresponsible behavior or protect myself. Ebay gets to keep my money. NOT FAIR EBAY!

Mar 15, 2009 7:38 AM

Guest :

I have been an ebay member since 2004, I use to sell items when I first started but I usually buy. I have been selling items on craigslist for a long period of time and decided why not try ebay when I had these old albums I wanted to get rid of. Well that was my first mistake! After alot of watchers and bidders I sold several of my items and pkged them up for shipping, there were some items that the buyers actually got for a steal of .99 cents and then there was a used cell phone with all the accessories that bidders were fighting over right up until the auction closed. After the buyers started receiving their items the complaints started on items I thought were even better than described. One guy complained that his album arrived broken I offered the 99 cent refund he wanted his entire amount returned when I asked him to return the item first he asked for 8.10 as a refund I told him that was unreasonable he filed a paypal dispute and was told to return item, when that didnt work for him, he than emailed and said refund shipping or I leave a negative feedback. I refuse to let him hold me hostage by negative feedback so he left negative and I replied buyer unreasonable. I had a women win the cell phone never pay last day wants me to wait for moneyorder criminals took over her paypal account, not my problem told her to pay filed dispute buyer necer responded closed case to get my seller funds returned and give buyer strike, ebay removes buyer strike nexte day without explanation I have not received refund of selling fees and still have item and buyer has no strike. With that said I will never sell on ebay again, the buyers are holding sellers in negative feedback hostage. I'm sticking to craigslist it's free.

Apr 8, 2009 12:12 PM

Guest :

All of the sellers here may have valid points, and may be honest sellers. But as a buyer, I've dealt with the run-around from dishonest sellers too many times, and prior to this policy have never left a negative feedback. I was scared to, even though I did everything right. I have even had seller once charge me for insurance, and bail on me when I asked for claim information. Paypal only covers the first $200 of a transaction, so when I paid $355 for an auction, and it was an instant transfer from my bank account, Paypal would only refund me $200. So I lost $155 of hard earned money to some prick who took advantage that I didn't use a credit card. Also, how can a seller expect to receive positive feedback when they charge $16.00 for Priority Mail, and the item arrives stamped Media Mail? So it's situations like these that make me feel safer as a buyer on ebay. Of course ebay will always protect its buyers. You can't make any money if you can't sell anything. Sellers need to quit crying and take responsibility for their actions. You are saving tons of money by not having to pay rent for a storefront, and your merchandise is available to billions of people, not hundreds or thousands like a local buisness would be. I will always buy from a seller who makes insurance mandatory, calculates actual shipping prices, and pays extra to have several descriptive photographs of the item I'm purchasing. I, as well as other sellers, will even pay a little extra if the seller seems like they really know how to sell. Not just dump and run. That's it for now. I'm off to leave my first negative feedback ever. Paid for the item 16 days ago, received nothing, and sent 4 emails, none of which have been responded to. At least I have the satisfaction on knowing I can warn everybody about this fraud without fear of retaliation.

May 20, 2009 4:06 PM

Guest :

After 10 years of being on ebay and 6 years building my business up so I can support my two very youung children webay have really let me down on the feedback systwem. i had not received 1 negative in over 2500 transactions and had high praise from every buyer, then I sell one watch which a hand fell off in the post. I offered to correct the problem or give a full refund, but this was declined by the buyer and he had it repaired(not that it takes much to put a hand on), anyway to cut a long story a little less long I end up paying him back for his so called repair even though I need not have done as I was offered no proof, I have a message returned saying thank you and 'no hard feelings'. Next minute I look he has writting scaving feedback without any mention I tried everything to put the problem write. yet what can I put about his abusive emails he sent me and his lack of real communication as a partner in this transaction, nothing becasue if I left positive feedback with a negative message that is breaking ebay's policy and I would be kicked off.

Earlier in the year on another of my accounts i had one parcel go missing to Lithuania and one that the post office sent to South Africa instead of South Korea, both were sent with tracking so when they 'never arrived' I told the buyers to submit a claim with paypal and they would investigate the where about's, I provided all proof including tracking numbers to paypal and they gave the money back to the buyer, not a problem as I could claim through Royal mail, 3 days later all my ebay listings are removed and my account effectivly shut for at least 4 weeks to selling because I have broken 'ebay policy', little did i know that if i would have given the buyers their money back and not asked paypal to 'investigate' everything would have been fine, but because they 'investigated' i got two stikes against my ebay account and as it works on a ratio ie, I only had 10 sales in 30 days but two (that happend at least 1-2mths earlier) never turned up and were investigated this gave me a 20% fail rate, i was told if i had sold 20 items it would have been ok...so to put thing in perspective, if i sold 2000 low value goods a month and receive 100 negative feedbacks and 10 payopal claims my account can stay open but 2 claims in 6 years and thats it account closed down, makes no sense and is an utter disgrace, now my business is going to suffer and i think I am going to have to shut it down. EBAY Cheifs = NO IDEA

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