|Tue May 20 2014 11:58:59|
eBay Should Penalize Below Standard Rather Than Top Rated Sellers
It is no secret that eBay's image among its best performing sellers has taken a severe beating since the announcement of the ill conceived Defect Transaction seller rating system.
eBay has publicly admitted that they have more Top Rated Sellers than they feel they can afford, and their new rating system is designed to cull that number down to something eBay management finds more financially affordable.
If eBay truly has too many sellers who qualify for and receive Top Rated Seller status, then why have they failed to use that information to build buyer confidence instead of creating new and tougher metrics to browbeat and defeat those top performing sellers?
Why are they demoralizing their Best Sellers through a system of ever tougher ratings?
Does anyone at the top of eBay's management ranks realize that word of mouth about eBay suffers seriously, and that the loudest, most damaging voices are those of eBay's own sellers?
When the people who stand to benefit the most from increased traffic on eBay are the ones bad mouthing eBay, then how does management expect sales to grow?
eBay management claims they want to improve the buyer experience through these heavy handed draconian changes, however it is obvious from their all past metric raising they have the wrong approach because sales are not growing on eBay at the same pace as the rest of the eCommerce industry.
If eBay is concerned with the costs associated with too many sellers earning discounts, then I agree they need to address that issue. However, as usual eBay management is applying financial pressure on the wrong end of the fulcrum.
Management is so focused on trimming the costs associated with the Top Rated Seller discounts that they have lost sight of how they could improve seller performance exponentially if they approached the problem from the bottom up instead of from the top down.
If management really wants to improve the buyer experience, then instead of demoralizing and demonizing their best sellers with new and tougher standards, they should have thought about leaving their best sellers alone to do what they are already doing so well and finance the TRS 20% discount program with increased fees on eBay's worst performing sellers.
I believe eBay should end the seller purges, and also scrap most of the ill conceived Defect Transaction program. Keep the minor improvements such as better transparency, but scrap all the rest and replace it with..... ( wait for it )
The Robin Hood Final Value Fee Schedule.
eBay has 3 classes of sellers. TRS (Top Rated Seller), ASS (Above Standard Seller), BS (Below Standard) .
Intelligent, forward thinking, and connected management would look at eBay's existing fee schedule and apply current existing rates to the TRS and ASS's and continue to offer the 20% TRS discount to all qualifying TRS. Sellers rated as Below Standard would pay slightly higher Listing Fees and higher Final Value Fees for their completed sales.
The additional revenue paid by the bottom performing sellers would offset the costs associated with the higher than expected number of Top Rated Sellers.
The Robin Hood Final Value Fee Schedule would address many shortcomings of the existing system:
Below Standard Sellers would now have financial motivation to improve their game which in turn would improve buyer satisfaction which would lead to higher GMV figures for eBay. If they choose to leave eBay, then it is their idea to do so, and eBay avoids the negative aspects of all the purges.
Sellers in the Above Standard Seller ranks would have motivation to avoid letting their performance slip. This would also help eBay buyer confidence.
Top Rated Sellers would be relieved of the stress and demoralizing aspect of eBay's constant squeeze downs on seller performance leading to a more satisfying relationship between them and their trading partner.
Now I do not have an MBA, and I did not sleep in a Holiday Inn Express last night either. I am simply an eBay seller who has been observing eBay's over paid MBA's attempting to solve the buyer satisfaction problem by attacking from the top down instead of from the bottom up and failing to accomplish their stated goals of growing sales.
The demoralization of eBay's Top Rated Sellers needed to cease at least two seller updates ago.
If eBay really cared about increasing buyer satisfaction rates, they would do more to motivate the bottom performing sellers to improve their performance instead of finding new and even more draconian ways to punish their Top Rated Sellers who then have nothing positive to say about the meat grinder they find themselves caught in.