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    eBay Continues Changes

    eBay is once again changing the way it does business by adding more restrictions to its sellers.  Remember when eBay added in the features that allowed a buyer to rate a seller on several categories?  Well now eBay is using that as a basis to say if sellers can continue to sell.

    This excerpt from BizWeek illustrates it quite well:

    In a nutshell, eBay wants its sellers to keep a 4.3 or above (out of 5-star) composite average on several metrics on which customers leave feedback. The most controversial is the shipping and handling feedback. A 4 in this metric means “reasonable,” but if a seller starts getting mostly 4s, eventually that will pull her overall rating down below 4.3. If a buyer rates the shipping charges as “neutral” (3) or “unreasonable” (2)—even if that perception is mistaken—the seller’s ratings will plummet and her account can be suspended. Sellers do have 30 days to increase their rating while they’re suspended, but if they’re not selling, it’s obviously tough to get better feedback.

    It is clear that eBay really does not want to be in the auction business anymore.  These new rules make it very difficult for sellers, and exceptionally difficult for low volume sellers, to stay compliant.  All it takes is one or two disgruntled buyers and you are screwed.  I am glad that I got out while things were still not all that bad.

    These sort of changes make me wonder though.  A business always has to be evolving or they risk being left behind.  You have to find new opportunities or niches to fit in to have growth.  But what if you lose your core competency while doing so?  Are you so focused on growth that you would risk the thing that made you great?

    eBay was known as a place for auctions.  That was what they were good at.  As they move toward a model that is now focused on Fixed Prices not auctions, I think they are giving up more than they realize.  It is easy to blame the lower profits on the economy now, but I would think this would be a time for eBay to shine.  People are selling stuff they don’t need and also looking for stuff at a good price.  As eBay continues to make these changes I wonder if the current economic circumstance is clouding eBay’s view of the business model they are chasing after.  Then again, maybe eBay is positioning itself to take on Amazon.  This could get interesting.

    This has been a Thought From The Cake Scraps.

    3 responses to “eBay Continues Changes”

    1. Chris Moran says:

      Nice writing style. Looking forward to reading more from you.

      Chris Moran

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    3. Tracy says:

      Hi,
      I have a Ebay shop & last week i signed into my account like i do every day & could not belive my account was saying that its blocked and there was a message saying that my account has been suspended for no less then 7 days & that after that time i need to send in the form they ask you to fill out plus fax them 2 I.D bits.
      When reading the message its due to me putting on a listing but i still dont know why they say its over this as the radley credit card holder was not a fake 1 so i did email them and ask what have i done wronge and they just said back a lot of things i dont understand but the suspended seems to me that its over fake goods.This i got from ebay myself but it was a single holder so it was no good to me so i listed to sell it.Please can anyone tell me if this has been the same to them.
      Once i send or fax the form & i.d do you think ebay will unsuspened my account.
      I had near on 900 feedbacks & pay all my ebay fees in good time plus my feedback is 100% I have only 2 negs in the 2 years so as a seller i thing i am ok…
      Will be glad to hear from anyone at all.
      I so want my account back as i dont sell too much each week but i realy love doing ebay as my 2 boys are teens know so i have more time on my hands to do ebay and run my shop.
      Many thanks for reading this SAD SAD LETTER

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