eBay

Tales of the Michael Jackson lottery, eBay and security

I’ve been fascinated of late with the issue of eBay auctions of hot-hot items, like the playstation 3 and others. The story of the Michael Jackson memorial tickets is an interesting one.

17,000 tickets were given out as 8,500 pairs to winners chosen from 1.6 million online applications. Applicants had to give their name and address, and if they won, they further had to use or create a ticketmaster account to get their voucher. They then had to take the voucher to Dodger stadium in L.A. on Monday. (This was a dealbreaker even for honest winners from too far outside L.A. such as a Montreal flight attendant.) At the stadium, they had to present ID to show they were the winner, whereupon they were given 2 tickets (with random seat assignment) and two standard club security wristbands, one of which was affixed to their arm. They were told if the one on the arm was damaged in any way, they would not get into the memorial. The terms indicated the tickets were non-transferable.

Immediately a lot of people, especially those not from California who won, tried to sell tickets on eBay and Craigslist. In fact, even before the lottery results, people were listing something more speculative, “If I win the lottery, you pay me and you’ll get my tickets.” (One could enter the lottery directly of course, but this would increase your chances as only one entry was allowed, in theory, per person.)

Both eBay and Craigslist had very strong policies against listing these tickets, and apparently had staff and software working regularly to remove listings. Listings on eBay were mostly disappearing quickly, though some persisted for unknown reasons. Craiglist listings also vanished quickly, though some sellers were clever enough to put their phone numbers in their listing titles. On Craigslist a deleted ad still shows up in the search summary for some time after the posting itself is gone.

There was a strong backlash by fans against the sellers. On both sites, ordinary users were regularly hitting the links to report inappropriate postings. In addition, a brand new phenomenon emerged on eBay — some users were deliberately placing 99 million dollar bids on any auction they found for tickets, eliminating any chance of further bidding. (See note) In that past that could earn you negative reputation, but eBay has removed negative reputation for buyers. In addition, it could earn you a mark as a non-paying buyer, but in this case, the seller is unable to file such a complaint because their auction of the non-tranferable ticket itself violates eBay’s terms.  read more »

Sellers need not be so upset about eBay's changes

eBay has announced sellers will no longer be able to leave negative feedback for buyers. This remarkably simple change has caused a lot of consternation. Sellers are upset. Should they be?

While it seems to be an even-steven sort of thing, what is the purpose of feedback for buyers, other than noting if they pay promptly? (eBay will still allow sellers to mark non-paying buyers.) Sellers say they need it to have the power to give negative feedback to buyers who are too demanding, who complain about things that were clearly stated in listings and so on. But what it means in reality is the ability to give revenge feedback as a way to stop buyers from leaving negatives. The vast bulk of sellers don’t leave feedback first, even after the buyer has discharged 99% of his duties just fine.

Fear of revenge feedback was hurting the eBay system. It stopped a lot of justly deserved negative feedback. Buyers came to know this, and know that a seller with a 96% positive rating is actually a poor seller in many cases. Whatever happens on the new system, buyers will also come to notice it. Sellers will get more negatives but they will all get more negatives. What matters is your percentile more than your percentage. In fact, good sellers may get a better chance to stand out in the revenge free world, because they will get fewer negatives than the bad sellers who were avoiding negatives by threat of revenge.

As such, the only sellers who should be that afraid are ones who think they will get more negatives than average.

To help, eBay should consider showing feedback scores before and after the change as well as total. By not counting feedback that’s over a year old they will effectively be doing that within a year, of course.

There were many options for elimination of revenge feedback. This one was one of the simplest, which is perhaps why eBay went for it. I would tweak a bit, and also take a look at a buyer’s profile and how often they leave negative feedback as a fraction of transactions. In effect, make a negative from a buyer who leaves lots and lots of negatives count less than one who never leaves negatives. Put simply, you could give a buyer some number, like 10 negatives per 100 transactions. If they do more than that, their negatives are reduced, so that if they do 20 negatives, each one only counts as a half. That’s more complex but helps sellers avoid worrying about very pesky buyers.

Feedback on buyers was always a bit dubious. After all, while you can cancel bids, it’s hard to pick your winner based on their feedback level. If your winner has a lousy buyer reptutation, there is not normally much you can do — just sit and hope for funds.

If eBay wants to get really bold, they could go a step further and make feedback mandatory for all buyers. (ie. your account gets disabled if you have too many feedbacks not left older than 40 days.) This would make feedback numbers much more trustable by other buyers, though the lack of fear of revenge should do most of this. eBay doesn’t want to go too far. It likes high reputations, they grease the wheels of commerce that eBay feeds on.

One thing potentially lost here is something that never seemed to happen anyway. I always felt that if the seller had very low reputation (few transactions) and the buyer had a strong positive reputation, then the order of who goes first should change. Ie. the seller should ship before payment, and the buyer pay after receipt and satisfaction. But nobody ever goes for that and they will do so less often. A nice idea might be that if a seller offers this, this opens up the buyer to getting negative feedback again, and the seller would not offer it to buyers with bad feedback.

eBay should support the ReBay

Best

There’s a lot of equipment you don’t need to have for long. And in some cases, the answer is to rent that equipment, but only a small subset of stuff is available for rental, especially at a good price.

So one alternative is what I would call a “ReBay” — buy something used, typically via eBay, and then after done with it, sell it there again. In an efficient market, this costs only the depreciation on the unit, along with shipping and transaction fees. Unlike a rental, there is little time cost other than depreciation.

For some items, like DVDs and Books and the like we see companies that cater specially to this sort of activity, like Peerflix and Bookmooch and the like. But it seems that eBay could profit well from encouraging these sorts of markets (while vendors of new equipment might fear it eats into their sales.)

Here are some things eBay could do to encourage the ReBay.

  • By default, arrange so that all listings include a licence to re-use the text and original photographs used in a listing for resale on eBay. While sellers could turn this off, most listings could now be reusable from a copyright basis.
  • Allow the option to easily re-list an item you’ve won on eBay, including starting from the original text and photos as above. If you add new text and photos, you must allow your buyer to use them as well.
  • ReBays would be marked however, and generally text would be added to the listing to indicate any special wear and tear since the prior listing. In general an anonymised history of the rebaying should be available to the buyer, as well as the feedback history of the seller’s purchase.
  • ReBayers would keep the packaging in which they got products. As such, unless they declare a problem with the packaging, they would be expected to charge true shipping (as eBay calculates) plus a very modest handling fee. No crazy inflated shipping or flat rate shipping.
  • Since some of these things go against the seller’s interests (but are in the buyer’s) it may be wise for eBay to offer reduced auction fees and paypal fees on a reBay. After all, they’re making the fees many times on such items, and the paypal money will often be paypal balance funded.
  • Generally you want people who are close, but for ReBaying you may also prefer to pass on to those outside your state to avoid having to collect sales tax.
  • Because ReBayers will be actually using their items, they will have a good idea of their condition. They should be required to rate it. No need for “as-is” or disclaimers of not knowing what if it works.

This could also be done inside something like Craigslist. Craigslist is more popular for local items (which is good because shipping cost is now very low or “free”) though it does not have auctions or other such functionality. Nor is it as efficient a market.

iPhone eBay Frenzy

Earlier I wrote about the frenzy buying Plastation 3s on eBay and lessons from it. There’s a smaller scale frenzy going on now about the iPhone, which doesn’t go on sale until 6pm today. With the PS3, many stores pre-sold them, and others lined up. In theory Apple/AT&T are not pre-selling, and limiting people to 2 units, though many eBay sellers are claiming otherwise.

The going price for people who claim they have one, either for some unstated reason, or because they are first in line at some store, is about $1100, almost twice the cost. A tidy profit for those who wait in line, time their auction well and have a good enough eBay reputation to get people to believe them. Quite a number of such auctions have closed at such prices with “buy it now.” If you live in a town without a frenzy and line it might do you well to go down to pick up two iPods. Bring your laptop with wireless access to update your eBay auction. None of the auctions I have seen have gone so far as to show a picture of the seller waiting in line to prove it.

eBay has put down some hard terms on iPhone sellers and pre-sellers. It says it does not allow pre-sales, but seems to be allowing those sellers who claim they can guarantee a phone. It requires a picture of the actual item in hand, with a non-photoshopped sign in the picture with the seller’s eBay name. A number of items show a stock photo with an obviously photoshopped tag. In spite of the publicised limit of 2, a number of people claim they have 4 or more.

It seems Apple may have deliberately tried to discourage this by releasing at 6pm on Friday, too late to get to Fedex in most places. Thus all most sellers can offer is getting the phone Monday, which is much less appealing, since that leaves a long window to learn that there are plenty more available Monday, and loses the all-important bragging rights of having an iPhone at weekend social events. Had they released it just a few hours earlier, I think sales like this would have been far more lucrative. (While Apple would not want to leave money on the table, it’s possible high eBay prices would add to the hype and be in their interest.)

As before, I predict timing of auctions will be very important. At this point even a 1 day auction will close after 18 hours of iPhone sales, adding a lot of rish. The PS3 kept its high value for much of the Christmas season, but the iPhone, if not undersupplied, may drop to retail in as little as a day. A standard 1 week auction would be a big mistake. Frankly I think paying $1200 (or a $300 wait-in-line fee) is pretty silly.

The iPhone, by the way, seems like a cool generalized device. A handheld that has the basic I/O tools including GSM phone and is otherwise completely made of touchscreen seems a good general device for the future. Better with a small bluetooth keyboard. Whether this device will be “the one” remains to be seen, of course.

Update:  read more »

Renting out eBay feedback to first-time sellers

An eBay reputation is important if you’re going to sell there. Research shows it adds a decent amount to the price, and it’s very difficult to sell at all with just a few feedbacks. Usually sellers will buy a few items first to get a decent feedback — sometimes even scam items sold just for feedback. Because savvy buyers insist on selling feedback, it’s harder, and sometimes sellers will also sell bogus items just for feedback as a seller. eBay has considered offering a feedback score based on the dollar volume of positive and negative transactions but has not yet done this. Some plugins will do that.

One thing I recommend to low feedback sellers it to offer to reverse the “normal” payment system. If the seller has little feedback and the buyer has much better feedback, the seller should send the item without payment, and the buyer pay on receipt. Many people find this foreign but in fact it makes perfect sense. In real stores you don’t pay until you get the item, and many big reputation merchants allow payment on credit for known buyers. Another idea is to offer to pay for escrow. This costs money, but will make it back in higher sale prices.

However, here’s a new idea. Allow high-reputation sellers to “lease out” feedback, effectively acting as a co-signer. This means they vouch for the brand new seller. If the new seller gets a negative feedback on the transaction, it goes on both the new seller’s feedback and the guarantor’s. Positive feedback goes on the seller and possibly into a special bucket on the guarantor’s. The guarantor would also get to be involved in any disputes.

Seems risky, and because of that, guarantors would only do this for people they trusted well, or who paid them a juicy bond, which is the whole point of the idea. Guarantors would probably use bonds to issue refunds to badly treated customers to avoid a negative, though you want to be careful about blackmail risks. It’s possible the breakdown of true and as-guarantor negatives might be visible on a guarantor if you look deep, but the idea is the guarantor should be strongly motivated to keep the new seller in line.

With lendable reputation, new sellers could start pleasing customers and competing from day one.

More eBay feedback

A recent Forbes items pointed to my earlier posts on eBay Feedback so I thought it was time to update them. Note also the eBay tag for all posts on eBay including comments on the new non-feedback rules.

I originally mused about blinding feedback or detecting revenge feedback. It occurs to me there is a far, far simpler solution. If the first party leaves negative feedback, the other party can’t leave feedback at all. Instead, the negative feedback is displayed both in the target’s feedback profile and also in the commenter’s profile as a “negative feedback left.” (I don’t just mean how you can see it in the ‘feedback left for others’ display. I mean it would show up in your own feedback that you left negative feedback on a transaction as a buyer or seller. It would not count in your feedback percentage, but it would display in the list a count of negatives you left, and the text response to the negative made by the other party if any.)

Why? Well, once the first feedbacker leaves a negative, how much information is there, really, in the response feedback? It’s a pretty rare person who, having been given a negative feedback is going to respond with a positive! Far more likely they will not leave any feedback at all if they admit the problem was their fault. Or that they will leave revenge. So if there’s no information, it’s best to leave it out of the equation.

This means you can leave negatives without fear of revenge, but it will be clearly shown to people who look at your profile whether you leave a lot of negatives or not, and they can judge from comments if you are spiteful or really had some problems. This will discourage some negative feedback, since people will not want a more visible reputation of giving lots of negatives. A typical seller will expect to have given a bunch of negatives to deadbeat buyers who didn’t pay, and the comments will show that clearly. If, however, they have an above average number of disputes over little things, that might scare customers off — and perhaps deservedly.

I don’t know if eBay will do this so I’ve been musing that it might be time for somebody to make an independent reputation database for eBay, and tie it in with a plugin like ShortShip. This database could spot revenge feedbacks, note the order of feedbacks, and allow more detailed commentary. Of course if eBay tries to stop it, it has to be a piece of software that does all the eBay fetching from user’s machines rather then a central server.

The strange story of eBay Playstation 3 auctions

I’m not a gamer. I wrote video games 25 years ago but stopped when game creation became more about sizzle (graphics) than steak (strategy.) But the story of the release of the Playstation 3 is a fascinating one. Sony couldn’t make enough, so to get them, people camped out in front of stores, or in some cases camped out just to get a certificate saying they could buy one when they arrived. But word got out that people would pay a lot for them on eBay. The units cost about $600, depending on what model you got, but people were bidding thousands of dollars even in advance, for those who had received certificates from stores.

It was amusing to read the coverage of the launch at Sony’s own Sonystyle store in San Francisco. There the press got bored as they asked people in line why they were lining up to get a PS3. The answer most commonly seemed to be not a love of gaming, but to flip the box for a profit.

And flip they did. There were several tens of thousands of eBay auctions for PS3s, and prices were astounding. About 20,000 auctions closed. Another 25,000 are still running at this time. Some auctions concluded for ridiculous numbers like $110,000 for 4 of them, or a more “reasonable” $20,000 for 5. Single auctions reached as high as $25,000, though in many of these cases, it’s bad news for the seller because the high bidders are people with zero eBay reputation who obviously won’t complete the transaction. In other cases serious sellers will try to claim their bid was a typo. There are some auctions with serious multiple bidders that got to 3 and 4 thousand dollars, but by mid-day today they were all running about $2,000, and they started dropping very quickly. As I watched in a few minutes they fell from $1,500 to going below a thousand. Still plenty of profit for those willing to brave the lines.

It’s interesting to consider what the best strategy for a seller is. It’s hard to predict what form a frenzy like this will take, and when the best price will come. The problem is eBay has a minimum 1 day for the auction, so you must guess the peak 1 day in advance. Since many buyers were keen to see the auction listing showing that the person had the unit in hand, ready to ship, the possible strategy of listing the item before going to get it bore some risks. Some showed scans of their pre-purchase.

The most successful sellers were probably those who picked a clever “buy it now” price which was taken during the early frenzy by people who did not realize how much the price would drop. All the highest auctions (including those with fake buyers) were buy-it-now results. Of course, it’s mostly luck in guessing what the right price was. I presume the buy-it-now/best-offer feature (new on eBay) might have done well for some sellers.

However, those who got a bogus buyer are punished heavily. They can re-list, but must wait a day to sell by auction, and will have lost a bunch of money in that day. If they can find the buyer they might be able to sue. If they are smart, they would re-list with a near-market buy-it-now to catch the market while it’s hot.

Real losers are those who placed a reserve on their auctions, or a high starting bid price. In many cases their auctions will close with no succesful bidder, and they’ll sell for less later. Using a reserve or high starting bid makes no sense when you have such a high-demand item. Those paranoid about losing money should have at most started bidding at their purchase price. I can’t think of any reason for a reserve price auction in this case — or in most other cases, for that matter. Other than with experimental rare products, they are just annoying.

Particularly sad was one auction where the seller claimed to be a struggling single mom who had kids that lucked out and got spots in line, along with pictures of the kids holding the boxes. She set a too-high starting price, and will have to re-list.

Another bad strategy was to do a long multi-day listing.

It’s possible the rarity of these items will grow, as people discover they just can’t get one for their kids for Christmas, but I doubt it.

The other big question this raises is this: Could Sony have released the machine differently? Sony obviously left millions on the table here, about 30 to 40 million I would guess. That’s tolerable for Sony, and they might have decided to give it up for the publicity that surrounds a buying craze. But I have to wonder, would they not have been better served to conduct their own auctions, perhaps a giant dutch auction, for the units, with some allocated at list price by lottery or for those willing to wait in line so that it doesn’t seem so elitist. (As if any poor person is going to buy a PS3 and keep it if they can make a fast thousand in any event.)

Some retailers took advantage of demand by requiring customers to buy several games with the box, presumably Sony approved that. With no control from Sony all the retailers would be trying to capture all this money themselves, which they could easily have done — selling on eBay directly if need be.

I predict in the future we will see a hot Christmas item sold through something like a dutch auction, since being the first to do that would generate a lot of publicity. Dutch auctions are otherwise not nearly so exciting. When Google went public through one, the enemies of dutch auctions worked to make sure people thought it was boring, causing Google to leave quite a bit of money on the table, but far less than they would have left had they used traditional underwriters.

On a side note — if you shop on eBay, I recommend the mozilla/firefox/iceweasel plugin “Shortship” which fixes one of eBay’s most annoying bugs. It lets you see the total of price plus shipping, and sort by it, at least within one ebay display page.

PayPal should partner with UPS and other shippers

You’ve seen me write before of a proposal I call addresscrow to promote privacy when items are shipped to you. Today I’ll propose something more modest, with non-privacy applications.

I would like PayPal, and other payment systems (Visa/MC/Google Checkout) to partner with the shipping companies such as UPS that ship the products bought with these payment systems.

They would produce a very primative escrow, so that payment to the seller was transferred upon delivery confirmation by the shipper. If there is no delivery, the money is not transferred, and is eventually refunded. When you sign for the package (or if you have delivery without signature, when it’s dropped off) that’s when the money would be paid to the vendor. You, on the other hand, would pay the money immediately, and the seller would be notified you had paid and the money was waiting pending receipt. The payment company would get to hold the money for a few days, and make some money on the float, if desired, to pay for this service.

Of course, sellers could ship you a lump of coal and you would still pay for it by signing for it. However, this is a somewhat more overt fraud that, like all fraud, must be dealt with in other ways. This system would instead help eliminate delays in shipping, since vendors would be highly motivated to get things shipped and delivered, and it would eliminate any communications problems standing in the way of getting the order processed. There is nothing much in it for the vendor, of course, other than a means to make customers feel more comfortable about paying up front. But making customers feel more comfortable is no small thing.

Extended, the data from this could go into reptuation systems like eBay’s feedback, so that it could report for buyers how promptly they paid, and for sellers how promptly they shipped or delivered. (The database would know both when an item was shipped and when it was received.) eBay has resisted the very obvious idea of having feedback show successful PayPal payment, so I doubt they will rush to do this either.

EBay: Sniping good or bad or just a change of balance?

Ebayers are familiar with what is called bid “sniping.” That’s placing your one, real bid, just a few seconds before auction close. People sometimes do it manually, more often they use auto-bidding software which performs the function. If you know your true max value, it makes sense.

However, it generates a lot of controversy and anger. This is for two reasons. First, there are many people on eBay who like to play the auction as a game over time, bidding, being out bid and rebidding. They either don’t want to enter a true-max bid, or can’t figure out what that value really is. They are often outbid by a sniper, and feel very frustrated, because given the time they feel they would have bid higher and taken the auction.

This feeling is vastly strengthened by the way eBay treats bids. The actual buyer pays not the price they entered, but the price entered by the 2nd place bidder, plus an increment. This makes the 2nd place buyer think she lost the auction by just the increment, but in fact that’s rarely likely to be true. But it still generates great frustration.

The only important question about bid sniping is, does it benefit the buyers who use it? If it lets them take an auction at a lower price, because a non-sniper doesn’t get in the high bid they were actually willing to make, then indeed it benefits the buyer, and makes the seller (and interestingly, eBay, slightly less.)

There are many ways to write the rules of an auction. They all tend to benefit either the buyer or the seller by some factor. A few have benefits for both, and a few benefit only the auction house. Most are a mix. In most auction houses, like eBay, the auction house takes a cut of the sale, and so anything that makes sellers get higher prices makes more money on such auctions for the auction house.

Read on…  read more »

eBay - let me list unfavourite sellers

Ok, so there's a million things to fix about eBay, and as I noted before my top beef is the now-common practice of immense shipping charges and below-cost prices for products -- making it now impossible to search by price because the listed price is getting less relevant.

Here's one possible fix. Just as you can have a list of favourite sellers, allow me to add a seller to my list of blocked sellers. I would no longer see listings from them. Once I scan a seller's reputation and see that I don't trust them, I don't want to be confused by their listings. Likewise if I want to block the sellers who use the fat shipping, I could do that, so I could unclutter my listings. That might be something to make a bit more temporary.

Ideally let sellers know they are getting on these lists, too. They should know that their practices are costing them bidders.

eBay shipping scam and more eBay dynamics

I’ve done a few threads on eBay feedback, today I want to discuss ways to fix the eBay shipping scam. In this scam, a significant proporation of eBay sellers are listing items low, sometimes below cost, and charging shipping fees far above cost. It’s not uncommon to see an item with a $1 cost and $30 in shipping rather than fairer numbers. The most eBay has done about it is allow the display of the shipping fees when you do a search, so you can spot these listings.

I am amazed eBay doesn’t do more, as one of the main reasons for sellers to do this is to save on eBay fees. However, it has negative consequences for the buyer, aside from making it harder to compare auctions. First of all, if you have a problem, the seller can refund your “price” (the $1) but not the shipping, which is no refund at all. Presumably ditto with paypal refunds. Secondly, the law requires that if you are charged more than actual shipping (ie. handling) there is tax on the total S&H. That means buyers pay pointles taxes on shipping.

Again, since eBay would make more fees if they fixed this I don’t know why they have taken so long. I suggest:

  • Let buyers sort by shipping fees. Pretty soon you get a sense of what real shipping on your item should be. A sort will reveal who is charging the real amount and who isn’t. Those who don’t provide fees get listed last — which is good as far as I am concerned.
  • Let buyers see a total price, especially on Buy-it-now, shipping + cost, and sort on that or search on that. Again, those who don’t provide a sipping price come last.
  • Highlight auctions wthat use actual shipping price, or have a handling fee below a reasonable threshold. This will be unfair on certain high-handling items.
  • Of course, charge eBay fees on the total, including handling and shipping. Doesn’t help the buyer any but at least removes the incentive.

Now let’s talk about the reputation dynamics of the transaction. The norm is buyer sends liquid money sight unseen to the seller, and the seller sends merchandise. Why should it necessarily be one way or the other? In business, high reputation buyers just send a purchase order, get the item and an invoice, and pay later.

I think it would be good on eBay to develop a norm that if the buyer has a better reputation thant he seller, the seller ships first, the buyer pays last. If the seller’s rep is better, or it’s even, stick with the current system.

Sellers could always offer this sort of payment, even when the seller is high-rep, to high-rep buyers as an incentive.

There should also be special rules for zero-rep or low-rep sellers. By this I don’t mean negative reputation, just having few transactions. Who is going to buy from a zero-rep seller? The tradition has been to build up a buyer rep, and then you can sell, which is better than nothing but not perfect.

When the seller has a very low rep, the seller should just automatically assume it’s going to be send-merchandise-first, get money later except with very low rep buyers. Low rep sellers should be strongly encouraged to offer escrow, at their expense. It would be worth it. Often I’ve seen auctions where the difference in price is quite large, 20% or more, for sellers of reputations under 5. eBay should just make a strong warning to the low-rep sellers that they should consider this, and even offer it as a service.

Update: I’ve run into a highly useful Firefox extension called ShortShip. This modifies eBay search pages to include columns with total price. Their “pro” version has other useful features. You can sort by it, but it only is able to sort what was on that particular page (ie. the auctions close to ending, typically) so the price sort can be mistaken, with a cheaper buy-it-now not shown. eBay is so slow in adding software features that extensions like this are the way to go.

Why the high price for Skype

The reason that eBay paid such a huge price for Skype has now become clear. There were several companies competing to buy Skype, and just before the bidding closed, eBay decided the best way to win was to place a giant bid just a few seconds before the end. (This might be known as bid skyping.)

On a serious note, it has long been eBay policy, it is reported, to not want to facilitate communications between buyers and sellers, because they will just arrange to avoid eBay fees by selling outside eBay. Either this has changed, or the “obvious” parts of the plan — Skype presence on eBay auctions, “Skype the seller” buttons and so on, are not part of the value for eBay.

Another eBay feedback improver

Earlier, I wrote some proposals for improving ebay style feedback, including not having feedback revealed until both have left it. That has some flaws, but the main reason eBay is unlikely to do this is that eBay likes feedback to be positive, they want to convince buyers it is safe to shop there.

So here’s an alternate idea to prevent revenge feedback. Revenge feedback is only vaguely in eBay’s interests, in that the fear of it keeps feedback positive, but the existence of it adds to the negatives.

To solve this, attempt to detect revenge feedback and print statistics on it. What would be detected is negative feedback left by a seller on a buyer after the buyer has left negative feedback, but not if the buyer left this feedback immediately.

In theory the buyer has just one duty — to pay promptly. Indeed, since eBay owns PayPal they could also just report about buyers whether they paid promptly with PP and that should be all you need to know. Sellers might want to tag a “troublesome buyer” who has a lot of complaints after getting the item but I think that’s in an entirely different class of feedback anyway.

So really, a seller should leave feedback once the buyer has paid, and negative feedback only if the buyer pays slowly, pays falsely or doesn’t contact the seller.

Under my system above, if the seller waits to give feedback, in particular waits until after the buyer gives feedback, she’s taking a risk that her own negative feedback will get counted in the revenge count. And a high revenge count will scare away deals, deservedly.

More simply, the system could also just count how often the feedback came in the expected order (Seller’s first, then Buyer’s) and how often the other way around. This would strongly encourage sellers to feedback first. You would see when bidding that a seller always or rarely feedbacks on payment, and again, stay away from those who don’t.

Now admittedly, with the fear of revenge feedback gone, buyers would be more honest, and reputations would drop a bit. eBay might still want to avoid this, but with luck it would not be a big change.

Updated thoughts: It may be time for a 3rd party company to begin offering more detailed reputation information. Since eBay has stopped robots it doesn’t like, this would have to be on-client software which extracts results of transactions from eBay to another database that a browser add-on (like ShortShip) can display. All the useful information could be stored — feedback order, possible revenges, feedback based on dollar volume etc. Counting no-feedback transactions is harder and probably requires a blockable spidering operation or some complex shared network. To this one could add more feedback done outside of ebay, including revenge claims and full text stories that eBay doesn’t allow in feedback comments.

Useful hint: eBay doesn’t allow URLs in feedback, but if you invent a random string you can put ‘Search for randomstring’ in the feedback comment, and make a web page with that string in it that Google and the rest will find. Then people wanting to know more than 80 characters can learn it. Of course, the other party can also make a web page with that string so searchers see both sides, which is fine. A good non-random string might be something like eBay followed by the item number, as in ‘eBay130064299000’ — in fact, if such a method became common you could search for it without even needing it in the feedback.

Fix some eBay feedback problems

Like many, I am interested in reputation systems, and eBay has built the largest public reputation system. Many have noted how feedback on eBay is overwhelmingly positive — a 97% positive rating would be a reason to be wary of a seller.

It’s also noted that people do this because they are scared of revenge feedback — I give you a negative, you do it back to me. One would think that since the buyer’s only real duty is to send the money that the seller should provide positive feedback immediately upon receipt of that money, but they don’t.

Some fixes have been proposed, including:

  • letting you see the count of total auctions the party has been buyer or seller in, so you can see how many resulted in no feedback at all. Right now only eBay knows how large that number is.
  • double-blind feedback. That is to say that feedback is not revealed until both parties have entered it, or if only one party enters it, after the feedback period has expired.
  • Marking revenge feedback, ie. putting a mark next to negatives that were a response to an outgoing negative.

Thus you could have very low fear of revenge feedback and there would be no argument about who should go first.

This idea’s fairly obvious, so like many other obvious ideas about eBay one wonders if eBay doesn’t feel some benefit to themselves from not doing it, though it’s hard to see. I’m also curious as to why eBay doesn’t offer a “going, going, gone” auction where the auction closes only after 5 minutes with no bidding. That seems to be in the interests of sellers (and eBay which gets a cut of the selling price) and it’s certainly not something they are unaware of.

The only proposition I’ve heard is that eBay has decided that there is a positive value to itself (and possibly sellers) from bid-sniping, the process of bidding preemptively in the last minute of an auction to not give other live bidders (who didn’t use the automatic rebidder) a chance to come in with more. The only way this could be good woudl be if Snipers deliberately overbid in order to trump anything. Any research or thoughts on this? It may also be the case that the sniped auctions are more “fun,” or more of a contest. And finally having fixed closing times does facilitate participating in multiple auctions for the same thing.

I have also posted updated eBay thoughts and an even simpler system which eliminates revenge and in fact now have an eBay tag for all eBay related posts, including thoughts on eBay’s solution to all this.

Please Note: This thread is for discussion of philosophical or abstract aspects of the feedback system. Please do not post stories of your own particular problems from a particular seller or transaction. Keep it abstract.

Syndicate content