I have been researching and digesting eBay's new fee and feedback policies. The following are some thoughts I have put together to help us survive the new eBay.
Fees
Here is a calculator that will calculate your savings or not with the new eBay fee structure. Listing @ $.99 and selling 70% of your items at $2.99 will cut the fees in half. Listing at $30.00 and selling 50% of the items at $30.00 will save 1/3 in fees. The general consensus is that those sellers with Power seller status and 4.6 or higher detailed seller ratings that sell low end items with a low sell through rate will save lots of money. Those that sell high end items with a high sell through rate and don't have the powerseller status will pay through the nose.
http://www.auctionbytes.com/cab/pages/feecalc
eBay is rewarding the low end powerseller to, in my opinion boost the number of items available on it's site. This will increase their bottom line and make it almost impossible for Amazon.com and other online merchants to keep up. It is the number one online merchant site and it wants to keep it that way.
What can we do to realize all of the benefits of this new fee structure?
I am going to work up a form letter to send to all of my buyers telling them when their item was shipped and to keep this in mind when they leave feedback. It is not fair to be rated on Canada Post and U.S. customs lack of speed.
This will add a lot of time to the post sale process and affect my bottom line but should bring the DSR ratings up in communication, shipping charges and shipping time.
With higher DRS's and the Powerseller rating our items will be less costly to list and more visible in search and should therefore translate into more sales and more profit for us.
Feedback
There is no good news to be gleaned from the new feedback system for sellers, although I think a new strategy might counteract the inevitable flow of negatives that will be forthcoming.
Be proactive. Send a positive feedback as soon as the item is shipped. This is also a good opportunity to mention handling time and such IE; "Thank you item shipped today. Handling time 2 business days.
A percentage of buyers will then leave a positive feedback immediately. Those that don't can't be helped. Look at this feedback rating:
http://feedback.ebay.ca/ws/eBayISAPI.dll?ViewFeedback2&userid=corijennin&ftab=AllFeedback&sspagename=STRK:ME:UFS
This seller leaves feedback as soon as the item ships and has had no problems at all. They are good sellers with good products, much like us.
Offer a return policy. One school of thought is that the longer the return time allowed the fewer returns you will get. On low end items I just refund the entire amount they paid, they can keep the items. If the items are worth having them returned, it will be important to pay the shipping back to you as having the buyer pay shipping will leave them with a feeling that they paid X amount of dollars for nothing. If the whole process does not cost them anything they should go easy on the DSR's and Negatives. This is provided they have not left a nice feedback already. So in your listings always state that the buyer must pay return shipping and adjust accordingly.
Watch out for feedback extortion it is against eBay's rules and should be reported immediately. Some of the uglier buyers will use the new system to extort refunds or extra items from us. See
http://pages.ebay.ca/help/policies/feedback-extortion.html for details.
Buyers that purchase multiple items or are repeat customers will have all of the feedback they leave us count so they should be handled with care. It is possible to limit the quantity of items one buyer can bid on at a time.. Go to
http://pages.ebay.ca/help/sell/buyer-requirements.html for info on limiting quantities to buyers.
It is also possible to cancel bids if you see that a buyer is very active on your auctions and has a bad feedback score. It is also possible to check the feedback they have left for others. This will be very important when they are no longer eligible to receive negative feedbacks. Go to
http://pages.ebay.ca/help/sell/manage_bidders_ov.html#canceling for info on canceling bids.
Frequent buyers and repeat customers should be properly rewarded and made to feel special. This can be done with free gifts, go withs or extra shipping discounts. It is also possible to let them know how important the DSR's are to us and hope they respond accordingly. It is way easier to keep a good customer happy than it is to change the mind of a disgruntled one.
First time eBay users should also be treated in this way. They are less likely to have a good grasp on the feedback system and may well do you more harm than good. If we lay out the way we would like them to respond with the DSR's they may add a star or 2 to their rankings.
Will this all cost a lot of time and money? Yes.
Will you be able to survive the new eBay if you don't change your ways? Maybe.
Even if you are a great seller with golden stock, golden feedback, dedicated shipping staff, dedicated customer service representatives and the lowest prices on eBay, you are going to get more undeserved negative feedbacks from un-eBay educated or ugly buyers. There is nothing we can do about that. If your DSR's and/or feedback ratings get too low you will be paying more to list and will be lower down on the product search pages. How will that help your business? It won't! I believe that it is wiser and more beneficial to maintain a high feedback and DSR ranking through stellar customer service and some of the fore mentioned strategies, realize the savings eBay is offering, and use some of that money to grease the buyer rails and fend off any preventable negatives or low DSR's.
Jim Reid is a Canadian eBay Powerseller, a registered eBay Trading Assistant and a registered eBay Education Specialist with a web site devoted to his eBay business. http://www.onlineauctionvictoria.com/