Changes by eBay fuel backlash
Those would be some of the most powerful adages these days. And eBay is learning the last one the hard way. Ever since the auction giant decided to fiddle with its fees and feedback structure this year, it is really feeling the wrath of its largest sellers, some of whom are dropping off the platform.
A May 1 boycott is being organized to protest the latest changes, namely that sellers no longer will be able to leave negative feedback for buyers, and the new fees structure, which reduces the up-front fees for some auctions but increases the back-end percentages for others.
The company says the changes, which include free gallery pictures and discounts for PowerSellers, overcome the disadvantages. It says the changes in the heralded feedback process are especially overdue.
Bill Cobb, president of eBay North America, laid out the rationale for the move in a forum post. "Overall, the current feedback system isn't where it should be," he said. "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."
The company is facing rough waters in general in the wake of the changes. Longtime CEO Meg Whitman just quit and has joined the campaign of presumed Republican presidential nominee John McCain. Its stock is in the tank. And its 2008 outlook is not great. And PowerSellers are trying to move to competing platforms that offer more friendly climates, including Online Auction (www.ola.com) and Etsy (www.etsy.com) for things handmade.
And now there is a May 1 boycott that is gaining momentum. Will it work? It's no secret that without its largest sellers, eBay is doomed financially. I would hope that the new CEO is listening to the racket in the marketplace, taking stock of the new upstarts and realizing the PR blunder if nothing else.
It would not be the first time a big company would admit a mistake and move on. Maybe eBay will do it sooner rather than later.
James Derk is owner of CyberDads, a computer repair firm, and tech columnist for Scripps Howard News Service. His e-mail address is jim@cyberdads.com.
Recent comments
not only is it feedback. they have this new best match system where...
mike | May 25, 2008 at 1:10 p.m.
eBay need to concern themselves with decent communication with Sellers...
Peko | April 13, 2008 at 6:20 p.m.
Now ebay has a NEW policy they are inflicting on HONEST ebay sellers...
Karen | March 28, 2008 at 10:51 a.m.
