Massive Changes Anger EBay Users Worldwide

Feedback and Payment Policy Changes Upset Company's Customer Base

G. Keith Evans
In their never-ending quest to make online buying safer, virtual auction giant eBay may just have reached a new low in online safety. With massive changes only recently implemented, those selling on the site have reported droves of negative experiences and unprecedented hassles.

To hear the sellers speak, one would think the auction powerhouse was circling the drain of self-destruction. The most obvious change, no longer allowing eBay sellers to leave feedback ratings for their customers, is a hard blow to those who pay the bulk of the site's bills through various fees. Originally intended to allow customers to provide sincere, honest and frank reviews of a seller's performance, the change was quickly exploited by unscrupulous users to strong-arm and, in some cases, even rob sellers.

On the day the changes were implemented, a rash of extortion attempts on eBay's base of "Power Sellers" was reported across forums, blogs and the site's own interactive community. The scam began with a winning bid from an unknown or new user; only when the auction 'winner' contacted the seller did the ruse become apparent. "We're in the business of selling positive feedback," the threatening letter to targeted sellers stated, "for $20, I will leave positive feedback and you get to keep your product. Refuse to pay and we will ruin your business." Unable to leave negative feedback for these e-gangsters, eBay sellers hit by the scam were rendered defenseless.

All the while, eBay collected its auction listing fees and "final value fees" (the percentage of the auction's final sales price) from the seller stuck not only with a non-paying auction winner but the threat of total professional annihilation. The company's apparent unwillingness to address the situation-or even acknowledge its existence-only served to further aggravate the site's members.

Another questionable move, apparently designed to boost eBay's bottom line, left sellers with yet another sour taste in their mouth. Prior to the change, sellers could accept a variety of payment methods including, but not limited to, personal checks, money order, cash exchanged in person, proprietary merchant accounts or money transfer services. Under the new guidelines, sellers are required to offer eBay's own Paypal service as a payment option and new sellers are limited to closing financial transactions using only Paypal.

Due in part to the difficulty of using Paypal for some sellers, the money mover's reputation of pandering to scammers, high fees and the service's propensity to "freeze" seller accounts for no apparent reason, eBay users recently began using Paypal alternatives such as Revolution. For these same reasons, eBay's attempt to force its own services upon its community were poorly received.

Clearly, eBay is an online behemoth. With more than 84 million users worldwide and commanding nearly a tenth of the worldwide e-commerce activity, eBay is a formidable presence. Disgruntled postings on Internet forums, though, suggest an exodus of former eBayers to competing sites such as rival Amazon.com or electronic auction newcomer Kaqoo. If these recent changes stick, these sites may very well find themselves catapulted into eBay's former glory.

Published by G. Keith Evans

Born in the mountains of East Tennessee, G. Keith Evans now pursues the ideals of Responsible Liberal Journalism from his office outside of Orlando, FL. His book, Appearances: The Art of Class, can be purcha...  View profile

  • eBay feedback policy changes limit the ability of sellers to rate buyers
  • eBay payment policy changes force Paypal on its users
  • Users are leaving eBay in search of more favorable venues

8 Comments

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  • Jill04047/19/2008

    I left ebay after three years there. The feedback jungle and price hikes got to be too much. Found a new home at www.Atomicmall.com

    Much happier now!

  • Gina Elliott6/29/2008

    What a shame. eBay used to be good for making a little extra cash. That was many people's livelihood. Mothers could stay at home with their kids while selling products online and making a once-a-week trip to the post office for shipments. Everything good always gets ruined because people become stupid and lazy and try to scam because they can't be bothered with WORKING for money.

    By the way, Etsy.com is amazing for eclectic, different, artsy items, as Henrietta pointed out.

  • Ann6/26/2008

    Ebay is it's own worst enemy. They have turned their backs on the thousands and thousands of people who supported the empire that we sellers now refer to as "EVIL". I believe their true plan is to get rid of as many small, medium and large sellers as possible. They are embarrassed by their "flea market" reputation and want to make huge changes. They are keeping their stockholders in the dark by using sellers like BUY or BUY.com (which is owned by Ebay) to pad their listings. They don't want their stockholders to see the numbers dropping. As soon as Ebay stock becomes devalued, the power behind the destruction of Ebay will buy up all the stock and turn the company into another Amazon or Overstock type site. Once they have control of the majority of the stock, they won't have to listen to the stockholders concerns. Ebay has a plan in place. They don't care about our needs. Ebay quote, "change is hard". If they only knew, that what goes around, comes around.

  • jerry6/18/2008

    i already closed both of my ebay stores,before my feedback gets destroyed..

  • dlkramer7216/14/2008

    ONLINEAUCTION.COM (OLA.COM) this is the new upcoming auction site! Ebay has competition now!

  • Just Me6/12/2008

    There's a site getting ready for launch around the end of June that WILL blow alot of these "online auction sites" including eBay. out of the water!
    atomicmall.com
    COMING SOON!!!!!!

  • Simo6/9/2008

    After 2 years of 100% positive feedback, my rating went down to 96% in 2 week and now Ebay is informing me that the volume of the items I am putting on sales will be restricted for 3 months. I decided just to throw the towel. The execs on Ebay must have been smoking when they decided to implement the changes

  • Henrietta6/9/2008

    Sorry to tell you your reference Kaqoo is not likely to make it as an alternative venue for eBay sellers.

    Top sites appear to be OnLineAuction.com, eCrater.com, PlunderHere.com, eWaey.com is growing like a weed, INetFlea.com, Bluejay.com, Loudfrog,com, iOffer.com for the hagglers, eBid.net is growing in popularity in the US, Etsy.com for hand crafters, lots of choice.

    Nobody in their right minds wants to create another monster like eBay, once shame on you, twice shame on me.

    www.redinkdiary.blogspot.com

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