eBay Beats Themselves Over the Head

A recent IR article highlights eBay user frustration that seems to be reaching a crescendo (see http://www.internetretailer.com/dailyNews.asp?id=26896)

The article details how the recent eBay Live event served as more of a bulletin board of complaints than a celebration of opportunities.

The latest misstep is eBay’s decision to leverage feedback almost entirely towards the power of the consumer and not the seller. In short, neutral reviews now effectively count as a negative experience, and sellers have lost the ability to give feedback about buyers.

The recent changes and ever increasing fees are destroying the  communal qualities which allowed eBay to blossom into an ecommerce powerhouse. The very structure of eBay encouraged equal power sharing among those selling and buying. Hearkening back to a more ancient barter system, eBay allowed almost anything to be sold (including, famously, used women’s panties in the early days).

I would easily call this a barter system, simply because the transaction is so fluid. Backed by PayPal, a buyer could quickly turn into a seller: hawking the goods they just purchased or digging in the closet and find something else to raise cash.

Instantly through eBay, people suddenly had the ability to bring billions of unused dollars back into the economy by making everyday household items a commodity. Since when could you have a country wide garage sale? When could you use your wholesaling, warehouse-running buddy to start your own business…while you are still working at your current job!?!

I am not sure I would pronounce the eBay revolution dead, but recent decisions are certainly pushing this revolution straight into the coffin.

On the positive side, eBay is pushing to include more fixed price auctions. This will allow more traditional merchants to list products without overhauling the way they sell. For example, most merchants don’t have a starting price, a reserve, an auction duration, and a buy-it-now price in their systems. By allowing mass fixed-price listings to be positioned easily, there is the hope for innovation and sustainability in the future.

Until then, I hope the dark ages do not take over what has been a wonderful renaissance in online business.

July 1st, 2008