eBay lowers seller protection to attract buyers

eBay lowers seller protection to attract buyers
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Online auction company eBay has decided to scrap the buyer feedback ratings system that sellers rely on in deciding whether to accept a purchasers bid or to reject it.

The decision to drop what has been a cornerstone of eBay since its launch by Pierre Omidyar in 1995 has angered many sellers as it leaves them unable to make a judgement as to the bona fides of buyers bidding on their listings.

It also exposes sellers to incurring additional eBay fees for items purchased by people who end up not paying.

While sellers will be unable to leave comments about buyers after February 19, buyers will still be able to leave positive or negative feedback about sellers.

eBay review system flaw

The buyer feedback ratings system was introduced by Ebay founder Pierre Omidyar in February 1995.
The buyer feedback ratings system was introduced by Ebay founder Pierre Omidyar in February 1995. JD Lasica

Demonstrating the same profits but no responsibility approach that I wrote about last year (See: eBay: Lots of Profit But No Responsibility) eBay is implementing the change because research has shown the main reason buyers stop using its site is due to receiving negative feedback from a seller – whether deserved or not.

Steve Grossberg, president of the Internet Merchants Association (IMA) in America, agrees with the research findings and said “when the seller leaves a negative feedback for a buyer, it drives them away from the site.”

Just as buyers are exposed to being defrauded by sellers who supply sub-standard goods, or who fail to ship items at all, sellers are exposed to bogus buyers and non-payers.

eBay spokesman Usher Lieberman, said about 6 per cent of auctions end in nonpayment by the winning bidder.

Currently many sellers rely on feedback to alert them to fraudulent practices and nonpayment. Many sellers scrutinise newly created accounts and put more effort in verifying bids from low ranked buyers before accepting their bids in an attempt to stop false sales resulting in fees.

The move by eBay extends its overall approach of chasing profits while at the same time accepting as little responsibility as possible and limiting its involvement and intervention to firing off a few emails and delisting users when things go wrong.

Mr Lieberman said sellers can apply an option requiring buyers to pay at the time of purchase, but this system isn’t available on auction sales because often buyers are not at their computers when an auction ends.

Buyer leaves negative feedback
Buyer leaves negative feedback Original Prop Blog

According to Mr Grossberg eBay needs to work harder to stop bidders who don’t pay up, with many sellers complaining they are just as exposed to fraud as buyers.

He said the company has no incentive to stop nonpaying bidders, because it charges its fees and commissions regardless of whether a transaction goes sour or not.

Many sellers on online forums are concerned the change will see an increase in buyers placing high bids for items but then refusing to pay if the bidding reaches this figure. It could also be used as a tactic by rival sellers to inflate a competitors goods to attract buyers.

With the only penalty being the cancelation of the buyers account the penalties are not too harsh. Especially as eBay refuses to implement a more stringent screening policy for confirming the identity of buyers and sellers.

While these latest changes might appeal to some buyers, it increases the exposure of sellers and may make eBay trading a lot less profitable for some.

Rather than making it easier for buyers to defraud sellers, the answer to falling buyer numbers might be in eBay biting the bullet and implementing a more robust system of verification, as well as taking a more proactive role in disputes.



Feature photo ebayink





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John Le Fevre is an Australian national with more than 40 years experience as a journalist, photographer, videographer and editor.

He has spent extensive periods of time working in Africa and throughout Southeast Asia, with stints in the Middle East, the USA, and England.

He has covered major world events including Operation Desert Shield/ Storm, the 1991 pillage in Zaire, the 1994 Rwanda genocide, the 1999 East Timor independence unrest, the 2004 Asian tsunami, and the 2009, 2010, and 2014 Bangkok political protests.

In 1995 he was a Walkley Award finalist, the highest awards in Australian journalism, for his coverage of the 1995 Zaire (now Democratic Republic of Congo) Ebola outbreak.

Most recently he was the Thailand editor/ managing editor of AEC News Today . Prior to that he was the deputy editor and Thailand and Greater Mekong Sub-region editor for The Establishment Post, predecessor of Asean Today.

In the mid-80s and early 90s he owned JLF Promotions, the largest above and below the line marketing and PR firm servicing the high-technology industry in Australia. It was sold in 1995.

Opinions and views expressed on this site are those of the author’s only. Read more at About me

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One Response to "eBay lowers seller protection to attract buyers"

  1. darius   August 24, 2008 at 6:08 am

    hi this policy for seller protction not fair every things must be equal by human
    also can be ause seller to not sell any item in ebay


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