eBay’s New Un-Published Feedback Policy

eBay has recently changed a number of items in the feedback policy.  One of the most apparent changes is the new star system where sellers are rated on four issues.  However, eBay actually has a totally new system of judging sellers – it’s not mentioned in the policy statement.  As a leading Power Seller, I have direct access to eBay.  Let me tell you what’s going on.

eBay now judges sellers based on FOUR major criteria.

First, foremost and traditional, is the positive/negative/neutral feedback system.  I call this the “Original eBay Feedback”.  As most people know, immediately upon the end of an auction, a buyer and seller can leave feedback and comments.  Anything over 98% has been seen as being a stellar eBay seller, with full rights and privileges on eBay.  This system has worked well.  However, it’s now not unusual for seasoned eBay sellers to have thousands of ratings where it would take a long time for their rating to change.

The second way eBay judges sellers is the new Star approach.  Launched in May of 2007, in addition to the Original eBay Feedback, buyers now have the option to rate the seller on four criteria on a scale of 1 to 5.  The criteria is as follows: Item as described, Communication, Shipping Time, and Shipping and Handling Charges.  These are the four major issues with eBay in a transaction.  However, again, the major problem is after so many transactions is that the numbers don’t change.

The third way eBay judges sellers is by the number of open disputes.  While buyers often simply use this as a way to communicate with sellers, eBay judges sellers based on how the dispute was closed.  eBay looks at the number of “Closed Happy” by the BUYER.  Too many unhappy closings and you get dinged by eBay.  Currently, there is no clear quantitative guidelines for sellers to be watching for…so you don’t know how you are doing.  Remaining questions from the seller’s perspective are, “How am I doing with disputes?”, “What is an acceptable level?”.

The fourth way eBay judges sellers is by the number of negative AND neutral feedbacks received during the last three month period.  I call this, “3 Month All Feedback”.  This is the most significant change from eBay and has the most impact on a seller.  It’s not mentioned anywhere in the policy guidelines and you can’t even find a tool to let you know how many negatives and neutrals you have received during the last 3 month period...at least a tool that neatly summarizes your feedback.  * * * As eBay is threatening sellers with 25% and 50% reduction is allowable sales volume * * *, let me take some extended time to explain this fourth judgement.

eBay keeps track of the number of negative AND neutral feedbacks received by a seller during the last 3 month period.  Notice again I am emphasizing neutral feedback as I have been told that eBay now sees negative AND neutral feedback as THE SAME.

Why this fourth way of judging sellers?  It provides eBay with a trend of how a seller is performing.  A seller just can slack off after having established a good reputation…not that many do at all.  More important, eBay has been convinced (right or wrong) that buyers leave NEUTRAL feedback instead of negative feedback in fear of receiving negative feedback from the seller.

From the seller’s perspective, the 3 Month All Feedback system is a significant change.  Unfortunately, you won’t find this clarified in eBay’s policies…only if you have an account manager.  If you contact eBay for general help, I think the eBay customer service rep will have no idea on what you are talking about.  It also came without warning to sellers, retroactive to that last 3 month period.  It’s like taking a test, handing in your exam sheet, and having the professor now tell you how they are going to base your grade.

Recommendations for eBay Sellers: Educate your buyers that eBay now sees neutral AND negative feedback as bad.  (thus at my store we now refer to feedback as either “positive” or simply “bad”).  Treat negative and neutral feedback as the same.  Also, go back 90 days and work with customers on any bad feedback you have received.  You can use a tool from Toolhaus to list your bad feedback.  Also, eBay must be incredibly convinced that these 4 ways of judging sellers is good business.  Learn from what eBay is doing, no matter if you agree or disagree or how you feel about how this new situation impacts your business.  Strive for complete buyer satisfaction and nothing less.

What’s next?  There’s way too many changes going on now from eBay.  They are going to need to consolidate their efforts before driving away good eBay sellers because there are just too many other sales channels today, both online and off.  eBay is going to take their lessons learned during the next few months and probably come up with clear cut feedback system, rather than a fragmented, unorganized approach.

In sum, eBay now has 4 major criteria to judge sellers:

1. Original eBay Feedback
2. Star Feedback
3. Closed Happy Customer Disputes
4. 3 Month All Feedback

I hope this article helps both customers and sellers.  eBay is the world’s leading online marketplace and it is vital to understand new trends and rules.  I’m also driven to provide great customer service.