Analysis: Stripping the eBay Mall of Its Community Spirit?

Some users have become upset with eBay's new transition from an "unruly flea market" to a "strip mall". Some have grown so angry, that they have called for a global boycott of eBay. This anger stems from the introduction of a newly implemented policy of not allowing sellers to leave neutral or negative feedback. Before this policy, eBay traders have been able to rate each other, which allows small sellers to build a good reputation, and to respond to buyers' false comments. This new policy change makes it look to favor big sellers. In addition, eBay recently raised the fee payable on sales from 5.25% to 7.25% of the final sales price and reduced the item insertion fee. These new changes are to lower the initial cost of selling on the online marketplace. eBay announced that these changes will enable the trust within the eBay community to flourish again.

Some business critics agree with eBay by stating that its core business is no different from Amazon.com and that allowing sellers to criticize buyers is not a good idea. Buyers don't like to be criticised in the real world. eBay explains that they have leveled out the playing field for buyers and sellers. However, eBay needs to be careful not to lose the sense of community that has made it so popular. Its recent changes may keep it above its competitors, but it must be careful not to alienate its users.

I have experience as both a buyer and seller on eBay. When I closed my massage spa a few years ago, I sold much of the equipment I had in the spa on eBay to reduce my total investment lost. I have also purchased personal items on the online marketplace. I feel that eBay shouldn't have implemented these new changes. The concept of eBay works so well because there seemed to be an even playing field between buyers and sellers. I know that sellers don't often criticise buyers outside of this online marketplace, but most sellers aren't like eBay users. In essence, sellers on eBay are its customers, not the buyers. The sellers are the ones that pay the fees to insert an item online as well as pay a percentage of the sales price. You want to keep these sellers or "customers" happy, so limiting the service for your customer is not a good idea. I realize that all business evolve to sustain a competitive advantage, but these are the wrong changes to implement. If eBay is concerned about sellers criticizing buyers, have a running count of how many negative comments a seller posts, this would indicate if a seller is abusing this feature.

Screenshot of eBay feedback screen:

Analysis: Stripping the eBay mall of its community spirit? (2008, May). Marketing Week,8. Retrieved May 9, 2008, from ABI/INFORM Global database.