Miriam,
I prefer to have this conversation publicly rather than in private. I am trying to be very respectful in this debate and I feel that everyone on this board has an "iron in the fire" so to speak. As such, they deserve the chance to participate in this exchange.
Correct me if I'm wrong, but I suspect that the majority of the feedback you and your co-workers have garnered is through purchases...not sales. This is in no way an insult...I am trying to point out that ebay has systematically failed, over the years, to employ people who fully understand their business.
During our conversations, Jordon would often cite the research numbers to explain the moves that ebay was making. As I explained to him many times, the problem does not lie in the fact that ebay is not doing extensive research in an effort to improve the systems. The problem lies in the WAY they pose the questions to their poll subjects and the WAY they interpret the answers they receive.
I do not believe that the employees, such as yourself, who are believing in the recent changes are naive, uneducated or company hacks. I do believe, from what I have garnered in the past, that you have been sold the idea that these changes are required by people who have misinterpreted the data available and have used said data to convince everyone under them of the "rightness" of their decisions. The most dangerous thing one can do with data is to make rash decisions based upon isolated numbers without fully researching and understanding the factors, both tangible and intangible that may have influenced the numbers. The failure to run the numbers past the very people who are operating on this platform daily to get their educated feedback on the data results is deplorable.
A perfect example of ebay's inability to adequately analyze their data can be found in the failure of their decision in January 2007 to raise listing fees and bury store items in order to "protect" the "quality" and "continued growth" of their "core" auction format. At that time I posted the following to a Piper Jaffray article on the moves...
The auction market was at its peak 2 years ago. There are only so many "collectors" of antique and novelty items out there and they have already tapped into ebay. I believe that, while the antique auction market will continue as it has, it has reached it's peak. This is evidenced by the lower list/sales and bids/item ratios. eBay has tried to hang on by their finger-nails to the format that launched on-line sales (auctions) and milked it beyond it's potential. That is one freakin dry cow. A seller of antique items would probably concede that you are getting less traffic and sales than you were 2 years ago. Just too many competitors in the second-hand/collector market. Any growth you may have realized can probably be directly attributed to your own SEO and promotion efforts.
New item sales are the only potential for substantial future on-line sales growth and auctions just don't work well for new items. Well, hell...everyone who has taken entry level economics knows the demand/supply graph and it's pitfalls. Auctions have reached the saturation point. The supply curve made a sharp jump to the right...everybody and their brother is trying to sell on ebay. As a result, prices and sales per listing have dropped substantially. eBay has these figures right in front of them. They go on about the lower list/sales and bids/item ratios as an excuse to raise listing fees. Huh? For some unfathomable reason, supposedly intelligent business people have made the fatal jump of erroneously ASSUMING cause and effect.
Did the Ivy League educated brass at eBay recognize this fundamental shift in purchasing patterns? Did they take advantage of the new opportunity in on-line retail purchasing? Nope. Instead, they tried to force-feed their antiquated view of the on-line market. They have raised fees over and over in order to prop up their growth for their investors and the stock market...but that could only work for so long. They have reached the point where front-end listing fees are too high to make it a viable format for most items. It was a false growth and now it's reached it's zenith and is on the down-turn.
If eBay had gone back to business basics and read the signs they would have realized the potential and managed the store format properly. This is a corporation that had the potential to become THE major on-line shopping mall.....the world's largest collection of stores. They had the name recognition, membership, resources and expertise to become the leader in on-line retail. The whole Express idea could have made them a fortune. How? By charging low front-end fees and higher FVF's on store listings and providing increased exposure for these listings. I don't care if ebay takes 10% of my gross sales if I've priced items with a 40% profit margin. Unfortunately, I'm not going to list them in my ebay store at all if they are going to charge exorbitant up-front listing fees, and provide little market exposure.
Due to the mismanagement of the store format, experienced sellers are opening their off-ebay sites in droves. They have come to realize that growth lies in another direction entirely. Purchase a fantastic shopping cart for a few hundred, find a reliable host for a minimal monthly charge and invest in SEO and Google adwords. You can drive a lot more traffic to your items while substantially reducing your costs.
It is such an old story really. Ten years from now, business schools will be using eBay as a case study in what NOT to do. How did so many supposedly intelligent, well educated business people fall into the basic Business 101 trap of failing to adapt to the marketplace?
Do I find it amusing that 1.5 years after I posted this the executive at ebay has come to the same conclusion and lowered listing fees, made gallery free and taken steps to make the site much more new item/fixed price friendly? Mildly. The emotion I feel more is frustration that they didn't see the writing on the wall back then.
Now they are making larger, and significantly more detrimental mistakes, with their new policies surrounding Best Match and Feedback. When a brand new seller gets higher placement in Best Match than a seasoned, proven PSer with 10 years of 99% feedback...you have some serious, serious problems. I say this as someone who has already figured out how to manipulate Best Match to my advantage. I'm at the top of most searches for my items...yet I fully understand that, due to the short-sighted actions of ebay, a scammer can achieve the same results under a brand new id. If eBay was trying to make the marketplace safer for buyers they have not only failed miserably...they have disillusioned their business partners and made the marketplace much more subject to fraud on the side of both buyers AND sellers.
I hope for all our sakes that they wake up to the error of their ways much quicker than the 17 months it took last time.
For your reference, I DO know what I'm talking about here...
* I have a BBA in Management Science from one of the top-ranked business schools in the world (same one as Jordon Banks actually).
* I have an extensive background in retail marketing and systems working in management for Canadian Tire head office, Canada's largest retailer.
* I have been a successful PowerSeller on ebay for 5 years.
Should ebay.ca be interested in hiring a consultant who actually KNOWS the ebay business, in addition to aN extensive education in interpreting statistical data CORRECTLY in a business environment, I'd be happy to consider any offers.
Monique
