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Top 10 Frustrations for eBay Sellers

Chris Crum | Staff Writer



An Extensive Look at the Peeves



At the beginning of the year, eBay announced some changes it was

bringing in with its new CEO John Donahoe. The changes spoke of

things like "Detailed Seller Ratings (DSR)" and "discounts for

sellers." To some, the changes didn't sound like anything to be

concerned about, but some saw through the plan and noticed other

phrases in there, like "removal of bad feedback for buyers" and

saw the potential for smaller businesses to be shut out. This is

a notion we are seeing proven accurate months later.



BusinessWeek took a look at some real-world examples of businesses

being affected by eBay's policy changes and the frustrations that

have plagued sellers. WebProNews has covered such frustrations in

the past as well (that also includes payment policy changes and a

boycott of the site by sellers). After scouring the Internet,

reading various articles and comments, and even contacting some

sellers first-hand, I have put together the following list of the

top ten things that sellers are frustrated with about eBay:



1. Management

2. Feedback Policy

3. Small Businesses Get Shut Out

4. Lack of Communication

5. Payment Policies

6. Fees/Lack of Profitability

7. Unwarranted Account Suspensions

8. The Buyers Themselves

9. Glitches

10. Lack of Innovation



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It's hard to truly give an accurate ranking of these problems in

terms of significance, and technically there is a fair amount of

overlap with issues under each category. It suffices o say that

they are each significant. Sellers have spoken, and these are the

issues they have with eBay.



1. Management



I'm going to place management above all because, ultimately, it is

where the rest of the frustrations stem from. Many of the negative

comments I have read (and about 98% of those have been negative)

have pointed the finger squarely at eBay CEO John Donahoe who took

office shortly before these changes came about. Some noted a

significant decrease in stock since he stepped in as well. In

fact, a BusinessWeek reader even pointed to a petition that has

been created, calling for Donahoe's termination.



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2. Feedback Policy



This is really the one that is getting most eBay sellers fired up.

Buyers can leave feedback on sellers, but sellers can't leave

feedback on buyers. Out of the sellers that I personally contacted

(that got back to me), all but one of them agreed that eBay's

feedback policy, which changed in May, is their biggest

frustration.



One seller responded, "Allowing buyers to give neg feedback w/o

recourse. Without leverage i.e. return Negative feedback. This

keeps ignorant buyers from learning how [to] work out differences

- 'expressing how they feel'. Mistakes are made. Some 'new' buyers

just give Neg FB w/o contacting [the] seller about exchange[s],

returns or refunds." I have also seen people cite buyers' lack of

understanding about shipping costs leading to negative feedback.



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Another respondent said: "The most frustrating thing about selling

on ebay is the complete disregard of SELLER's RIGHTS." He then

directed me to this site, which is dedicated to creating awareness

about eBay's policy changes, and illustrates the DSR system . "The

FEEDBACK SYSTEM Penalizes Sellers who do not have at least a 4.6

Rating in ALL 4 areas," that seller noted. "I have been selling on

ebay since 2002 and have NEVER had so much trouble with them!!!" I

have an excellent record & I still get LOWERED SEARCH STANDING &

HIGHER FEES!! THE SYSTEM IS NOT FAIR FOR SELLERS AT ALL ANYMORE!!!"



3. Small Businesses Get Shut Out



BusinessWeek's article was about this very topic. It looked at a

few small businesses that lost their ability to sell on eBay, in

large part due to the feedback issue, but that is not the only

thing affecting the little guys.



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Another part of this is eBay's deal with Buy.com, which some

people indicate is prioritizing merchandise from that site over

their own. Combine that with the charges that small businesses

must incur for selling through eBay, and profitability slides.

There seems to be a common theme resonating among sellers, saying

that eBay has basically sold out. They've gone too corporate and

are no longer appealing to the little guys.



4. Lack of Communication



Another common gripe is that the company will not communicate

with sellers to their liking. If sellers have problems, they get

the runaround. They get impersonal automated responses via email,

or low-level employees if they make a phone call. They can't get

through to management. They can't appeal their suspensions (which

are often considered unjustified).



Another communication flaw some have cited is that once their

account is suspended, they can't even communicate with customers

who may have already placed orders. This is not good for the buyer

or the seller.



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5. Payment Policy



Last month, eBay announced that they would no longer allow sellers

to accept checks or money orders as payment. Well, sellers were not

happy about this either. Most felt like that decision should be up

to each individual seller. Many have chalked this up to the company

simply wanting people to use eBay-owned PayPal.



Taking away options for payment can alienate some customers, and

sellers know that and found the new policy unfair. eBay said they

would accept PayPal, credit or debit card payments to the seller,

ProPay, or "payment upon pickup" as possible payment methods. They

claimed to update this policy to provide users with a more "secure

checkout experience."



6. Fees/Lack of Profitability



As I said, there is a lot of overlap in these and this ties into

the small businesses getting shut out problem. But many users are

having a hard time justifying paying the fees they must pay to use

eBay as their selling platform. Fees cut into the profits they

could otherwise be making by selling directly from their own

store, or from another platform that doesn't charge as much.



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7. Unwarranted Account Suspensions



Apart from those who are seeing their accounts suspended based on

their DSR, I have seen many claims that their accounts are deemed

"security concerns" and suspended as a result, without any

justification for this assessment. One person claimed their

account was suspended for this reason when they had not even

bought or sold anything through the site yet. They went to try to

sell something, but their account was already suspended.





8. The Buyers Themselves



There seems to have been an increase in tension between buyers and

sellers on eBay since their policy changes took effect. Buyers have

 been accused of lying to get away with cheating sellers by not

paying for items while eBay does little to combat the problem.

Others just don't think they can reach the right audience with

eBay. They consider eBay buyers to be the type that are looking

for bargains, and for those looking to sell quality products at

prices that aren't necessarily discounted, will have a harder time

selling those products.



9. Glitches



Some complain about technical glitches at eBay. A BusinessWeek

reader mentioned a variety of them including store glitches,

PayPal glitches, search glitches, DSR glitches, etc. Any company

is bound to experience some hiccups from time to time, but those

hiccups are going to be frustrating to users, and there's not much

that can be done about that other than trying to catch such

glitches before customers do.



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10. Lack of Innovation



Finally, some just don't feel like eBay is doing much innovation

anymore. There seems to be a general consensus that in eBay's

earlier years, the company was somewhat revolutionary and

appealing to anybody who wanted to get rid of some "old junk." As

time has progressed, many sellers have become less impressed. eBay

has made some acquisitions over the years like Skype and

StumbleUpon, but these have had little if any impact on eBay the

site.



In the End...



Not all eBay sellers are sitting idly by while they vent their

frustrations. There have been a number of sites started dedicated

to catering to those who feel cheated by eBay. Sites like Shopify,

Wigix, SeeAuctions, EveryPlaceISell, and I'm sure many more.

Sellers know that they have other options. Many have turned to

Amazon for example, or have opened up their own eCommerce sites

to sell directly.



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But not everybody is anti-eBay, so let's make that clear. The one

person I contacted who didn't cite feedback as their top

frustration, actually said, "You know honestly there really isn't

that much frustration that goes on with selling on my end. About

the only part is mailing out items and them getting 'lost' in the

mail. That is about it." eBay could hardly be to blame for that.

This person's business didn't even appear to be particularly large.



I'm fairly certain that this person isn't alone in her opinion of

eBay either. Even though many people are upset with eBay's

practices, some still find it a useful place to do business and

will likely carry that mentality with them into the holiday season

as consumers look for good deals on gifts for their loved ones.



However, it is quite clear that the company has alienated a broad

range of users. I can't imagine that all of eBay's management

finds this acceptable. Will there be changes made? What will eBay

do to win back customers? Or will they just continue to target new

ones? What does the future hold for eBay?



Are you an eBay seller or buyer? Give us your comments here:

http://aj.600z.com/aj/64052/0/cc?z=1&b=64067&c=64066



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