Read the Fine Print!

[rose-dee]

I just went through the 2014 Spring Seller Update line by line, and would encourage all sellers who are serious about their status on EBay to do the same.  EBay is tightening up their expectations of sellers, and there are some critical points in the "fine print". 

I've put the link here for easy reference, but I'd also say that the Seller Checklist (at the top left on the page) is a good thing to keep handy, to avoid suddenly finding yourself with a bunch of defects as of Aug. 20th:

http://pages.ebay.ca/sellerinformation/news/springupdate2014/sellerstandards.html

Items that particularly caught my attention: 

1)  Don't initiate a cancellation process if the buyer hasn't specifically requested it -- you'll get a defect.

2)  Neutral FB will now count as a defect;

3)  Don't bother to ask a buyer to revise negative or neutral FB anymore -- if you do, the transaction will count as a defect;

4)  Open cases will be counted as defects, but only if the buyer chooses INR or INAD in the resolution centre or through "Contact Seller".  This may be important, because a lot of sellers have been complaining that "Contact Seller" leads buyers to open cases when they really didn't intend to.  We'll see how that works out in practice.

5)  Sellers get a bit of leeway on Shipping Time DSRs (has to be a rating of 1 to count as a defect), but the "Item as Described" DSR will be counted more strictly -- a "3" will be enough to count as a defect (ouch).  So good photos and accurate descriptions will be more critical than ever.

Some positive news:  eBay has given sellers a bit of a gift on the "Shipping Cost" and "Communications" DSRs.  These will still be able to be rated by buyers, but won't count toward defects (i.e. for seller information only).  All I can say about that is: Finally!

Defects will be rated more stringently for Global TRS and US TRS, although the other programme requirements haven't been changed.  US TRS+ is another story: package tracking and the new "Extended holiday return" policy will make that designation even more difficult for Canadians to achieve. 

All in all, I imagine that sellers who aren't up to speed on the new defect rules are going to find themselves with a not-so-pleasant surprise on their dashboards come August 20th.  EBay obviously wants all its sellers to behave like professionals, and consistently.  Toughen up everybody!

[cumos55]

reply 39... definition of a transaction

That definition of a transaction is correct,  as stated in the FAQ associated with the Seller Update....

One Buyer can result in the creation of several defects.

However when it comes the TRS standing... it is the number of buyers and not the number of defects that come into play....

A buyer can purchase more than one item at the same time,  and create a defect for each item.....   but there is only a count of one buyer in relation to TRS standing..

The opened cases option is tight.... at 0.3 %

However,  the fact that one buyer can create more than one defect... one per transaction  could result in  a high defect count.....

and that is where the 2 % and 5 % defect rates become a factor.... 

[pjcdn2005]

A buyer can purchase more than one item at the same time,  and create a defect for each item.....   but there is only a count of one buyer in relation to TRS standing..

What do you mean by the last part of that statement? As far as I can tell, the way defects are counted are the same for TRS or non TRS sellers. The only difference is the percentage.

[cumos55]

The following is from the Seller Update... from the information   or from the FAQ.

(1) Question ...What is considered a transaction?

A transaction is a purchase from a listing. If a buyer purchases two or more identical items from the same multi-quantity listing, or purchases the same items in different variations such as color or size from the same multi-variation listing, that is considered one transaction. If a buyer purchases items from four different listings from the same seller and combines them into one order, that would be counted as four transactions. Note that the defect rate will not affect your performance rating until you have a transaction  with a defect from 8 different buyers (5 different buyers to affect your Top Rated Seller status).

(2) Each transaction is counted only once toward your defect rate, regardless of the number of defects associated with it. For example, if a buyer leaves you a 3-star rating for item as described and a 1-star rating for shipping time for the same item, that transaction still only counts once toward your defect rate. That gives you more leeway and will allow you to focus on fine-tuning your overall service instead of individual buyer actions.

(3) The defect rate will not affect your Top Rated status until you have transactions with defects with 5 different buyers—will help you stabilize your well-earned status and rewards.

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If one buyer buys five items.... and leaves five ratings of 1 for Description ....  That is five transactions with defects....  but only one buyer when it comes to TRS standing.  That is five defects from one buyer

If five different buyers each buy an item  and each buyer does something to create a defect..  This is five defects,  and five buyers which count towards the TRS standing.

Defects are counted per transaction.

while TRS standing is based on a count of buyers that created defects

[cumos55]

Maximum defect rate

TRS 2 %

All Sellers 5 % 

These two numbers are based on transactions with defects....and does not relate to buyers and how many defects each buyer created.

If you sell 1000 items each year  and one buyer leaves 20 low ratings..... that is 2 % of 1000

However, because  it is all from one buyer....  TRS standing is not affected.....  because it is 20 defects from one buyer

It is transactions with defects versus buyers that created the defects....  

One buyer  cannot affect a seller so dramatically that a seller loses their standing on eBay.

[cumos55]

20 defects from one buyer

is treated differently  than

20 defects from five buyers...

[cumos55]

Five defects from five buyers  puts a TRS seller into big trouble....

[rose-dee]

---

@cumos55 wrote:

If one buyer buys five items.... and leaves five ratings of 1 for Description ....  That is five transactions with defects....  but only one buyer when it comes to TRS standing.  That is five defects from one buyer

If five different buyers each buy an item  and each buyer does something to create a defect..  This is five defects,  and five buyers which count towards the TRS standing.

Defects are counted per transaction.

while TRS standing is based on a count of buyers that created defects

---

This is my understanding of the new rules as well.  As you pointed out, the regular threshold is 8 for sellers, 5 for TRS. 

This does make sense in light of eBay's statement that they want to give TRS sellers some leeway.  It would be more difficult under these rules for one individual buyer to end a seller's TRS rating, but an individual buyer could create a larger defect count for that seller.  Nonetheless it would not destroy the seller's TRS status (unless that buyer were buyer #5 of 5 over the evaluation period).

As I mentioned earlier, there are going to be a few more aspects for sellers to watch out for.

[cumos55]

Five defects from five buyers... A new reality for TRS.

But then once buyers figure out how to get to a seller....  we shall see what happens

In contrast  a seller with a lot of negative feedback... revised or not.... is in trouble... and there are a few sellers with such a record...

[rose-dee]

---

@pjcdn2005 wrote:

(1) If the buyer files an item not received case, seller enters the delivery confirmation number showing that the item has been received, the case is esclated, ebay rules in favour of the seller as item has been delivered - Yes, there will be no defect and will not count as closed case without resolution

(2) INR case opened, seller refunds, no tracking, case isn't escalated - This will count as a defect

     INR case opened seller doesn't refund, no tracking, case is escalated, ebay finds in favour of the buyer and refunds their money - Case will count as an unresolved case and as a defect.

(3)  Buyer opens an INAD case - seller refunds, case not escalated - Defect is given.

      Buyer opens an INAD case  seller challenges the case and it is escalated, buyer wins - This will count as a defect and an unresolved case

     Buyer opens an INAD, seller challenges, case is escalated and seller wins (which seems to be rare) - There will be no defect or unresolved case

So if the seller refunds without question, that case can still count as a defect but will not count as an unresolved case

---

I think your analysis is absolutely correct.  Which is why it's going to be more important than ever to avoidcases being opened in the first place. 

How does a seller do that?  For the sake of newer sellers (or those who feel they are always having problems with cases being opened against them), take a hard look at how you're listing and describing your items, and communicate clearly to your buyers that their total satisfaction is your goal. 

Now that we don't have to worry about "Communication" DSRs being counted against us, there's no reason to fear sending a message directly to a buyer after a sale, asking that they get in touch if they are not 100% happy with the item.  It's also not a bad idea to include a little note with the parcel to the same effect, perhaps with your personal email address, so the buyer will contact you first to sort out any issues before turning to a case.

Incidentally, I thought eBay was going to make it necessary for a buyer to contact a seller directly before a case could be opened.  Is that no longer true?  Does anyone know for certain, or is only true on eBay.com and not .ca?  From the Fall 2012 Seller Update:

"Buyers must contact you first.  Starting in February for items sold on eBay.com, buyers will be obliged to contact you through My Messages to make sure you have the opportunity to resolve issues before they can open a Buyer Protection case and get eBay involved.  You will be allowed three business days to respond and resolve the issue before they have the option of opening a case in the Resolution Centre." 

[pjcdn2005]

Defects are counted per transaction.

while TRS standing is based on a count of buyers that created defects

Your second statement suggests to me that TRS standing is based solely on the count of buyers that have created defects. but in reality buyer count and number of defects are factored in. If 3 buyers each left 11 defects (which is very unlikely) that is more than 2% but the seller is not over the 5 buyer threshold so TRS would be protected. If 10 buyers each left 1 defect, the seller is still not over the 2% and even though they have more than 5 buyers that have created defects they would still be protected.

The same premise is true for non TRS except the numbers change to 5% and 8 buyers.

Perhaps we are already saying the same thing but in different ways.

[rose-dee]

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@pjcdn2005 wrote:

If 3 buyers each left 11 defects (which is very unlikely) that is more than 2% but the seller is not over the 5 buyer threshold so TRS would be protected. If 10 buyers each left 1 defect, the seller is still not over the 2% and even though they have more than 5 buyers that have created defects they would still be protected.

The same premise is true for non TRS except the numbers change to 5% and 8 buyers.

---

PJ, you're right - where TRS is concerned, the application of the new rules will be a blended count, where both parameters will matter.  I think the key words in the following text are "rate" and "different", i.e. until you reach the 2% defect rate your TRS is protected unless you're over 2% and you also have defected transactions with 5 different buyers. 

"The defect rate will not affect your Top Rated status until you have transactions with defects with 5 different buyers—will help you stabilize your well-earned status and rewards."

I wanted to add that this is going to make it important to keep a regular watch on the Seller Dashboard.  If you get up to 4 transactions with defects from different buyers, you can't afford to be blasé about further defects if you're anywhere near that 2%.

[pjcdn2005]

where TRS is concerned, the application of the new rules will be a blended count, where both parameters will matter.

It is the same for non TRS as well..both parameters matter although obviously the TRS numbers are tighter.

[rose-dee]

---

@pjcdn2005 wrote:

where TRS is concerned, the application of the new rules will be a blended count, where both parameters will matter.

It is the same for non TRS as well..both parameters matter although obviously the TRS numbers are tighter.

---

Yes, of course, but I was referring specifically to the concerns around TRS above.

[cumos55]

Questions and clarification for Wednesday!!

[pjcdn2005]

What needs to be clarified?

[cumos55]

Clarification

The relationship  between the 2 % defect rate and the five buyers...

 Is it one...or.. the other ...or ... both at the same time that are critical in losing TRS status

I have the feeling that the 5 buyers is the more critical factor when it come to TRS status.

[cumos55]

Also ... 

Is that 5 buyer level the same no matter the number of annual sales.

Is it the same for 100 sales, 1000 sales and 10,000 sales over a 12 month period?

[cumos55]

Or ...

Does the 2 % defect rate kick in once the 5 buyer level is reached.....

The 5 buyer level is not the same at 1000 sales as 10,000 sales

while... the 2 % varies in relation to total sales...

[cumos55]

 I think I have a clarification...

from the Update ...

Starting with the August 20 evaluation, the new 2% maximum defect rate for Top Rated Sellers will apply. This will replace the four current detailed seller rating requirements that allow for just 0.50% transactions with low ratings. This extra margin—plus the fact that the defect rate will not affect your Top Rated status until you have transactions with defects with 5 different buyers—will help you stabilize your well-earned status and rewards.

The primary standard is 2 % defect rate.

But only if those defects are from more than 5 buyers....

[ricarmic]

Hi Rose, I had a question regarding this:

1)  Don't initiate a cancellation process if the buyer hasn't specifically requested it -- you'll get a defect.  

How does the buyer request the cancellation request, as in how does eBay know they asked for it??

I ask because last night a regular customer by accident purchased two of an item and asked me in an ebay (must have been "other") message to cancel one. I initiated the cancellation request and selected the buyer purchased by mistake or changed their mind option, which is really the only one I've ever selected in the past anyway.

So my question is did I do this right, or did I give myself a defect?

(If I didn't do it right, how should I have asked the buyer to do it?)