| eBay operates fundamental changes to improve customer experience |
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Among the changes to the fee structure and seller standards, eBay will lower fees for listing items, raise minimum selling standards, and offer its best sellers incentives and discounts for the first time in its history, unveiled president and CEO-elect John Donahoe at eBay’s eCommerce Forum. The modifications are aimed to optimize overall experience for eBay customers, and will be globally introduced in the eBay marketplaces. Besides changes in fee structure, seller incentives and standards, the modifications will impact another major area that influences seller behavior – namely feedback. Regarding the fee changes, these vary by country and are designed to encourage sellers to list more items and use more pictures in listings. As of 20 February, in the U.S., eBay will cut its fees to list items (“Insertion fees”) by 25 to 50 percent. In counterballance, the company plans to charge more when an item is sold (“Final Value” fees). The company’s strategy is, in a nutshell, to „make more of our money when sellers are successful”, Donahoe says. On the other hand, eBay will also rethink the way it deals with sellers. For starters, the company will rise its minimum standards for anyone who sells on the site. Thus eBay will start decreasing search exposure for the listings of sellers which have high rates of customer dissatisfaction; similarly, it will begin increasing search exposure for the listings of sellers with the best buyer satisfaction ratings. Another novelty is that the company will begin requiring a safe payment option, such as PayPal or a major credit card, for sellers who have a lower customer satisfaction ratings or for those which sell in categories with a high number of buyer complaints. eBay will aslo apply severer criteria for sellers who want to become part of its PowerSeller program, while qualified PowerSellers will be provided with valuable fee discounts and better payment protection from PayPal. “It is our intention to reward great sellers”, Donahoe explained. “Sellers that describe items accurately, ship on time, and ship at a fair price will enjoy preferential pricing and discounts on eBay. We think this will significantly improve the buyer experience overall.”, he added. As to the feedback area, Donahoe revealed that eBay will update it to reinforce healthy trading and ensure that buyers revisit eBay. |



