1. Message from Derek Gehl

Wow! My team just got back from another action-packed eBay Live in the Windy City...

And although the overall mood was more reserved than in previous years, individual eBayers still showed their true passionate spirit... especially when feedback changes were mentioned!

Don't miss our feature article that focuses on YOUR top feedback questions at eBay Live - and eBay's answers.

We'll also fill you in on some more dramatic changes to eBay policy you NEED to know about if you sell on eBay, as well as all their latest initiatives.

And you won't want to miss our Auction of the Month where a bold Aussie puts his life up for auction on eBay... and uses some clever marketing strategies to drive traffic to his listing.


Derek Gehl, CEO
The Internet Marketing Center


2. Feature article: Feedback a hot topic at eBay Live
eBay's annual conference eBay Live 2008 was held in beautiful Chicago, IL... but the event didn't quite live up to its name.

One conference hall worker commented on the disparity between the name eBay Live compared to the prevailing mood: "I've seen people come out of radiation oncology seminars looking more excited than these people."

Compared to previous years, the mood was somewhat restrained... until feedback changes were mentioned, that is!

The conference - besides being a place to attend classes, network with other sellers, and collect freebies at the exhibition booths - offered a prime opportunity for sellers to air grievances over eBay's massive policy changes...

... And many of you did just that.

So this issue, I want to talk about the most pressing feedback issues raised by your fellow eBayers... and give you the response straight from the policy-makers themselves.

Hot topic #1: Sellers can't leave negatives for buyers

You said:

• Some of you are being held hostage by unscrupulous buyers. It looks like there're a few bad apples out there that are making demands for free shipping or other goodies after a sale in exchange for not leaving negative feedback and bad DSRs.
  
  Furthermore, because eBay can't view these emails because of privacy laws, it's difficult for sellers to prove.
  
  
• Even buyers who don't pay are leaving negatives. Your best bet in this case is to start the Unpaid Item Process and hope the buyer has at least one other strike against them so you can have the negative removed.
  
  
• There's no way to clear up honest misunderstandings after the fact. Sellers can no longer explain their side of the story in a follow-up feedback comment. And now that mutual feedback withdrawal is a thing of the past, there's no way to have quick-trigger negatives retracted.

eBay said:

The old system was driving buyers away:

• Buyer dissatisfaction reports were far greater than the number of negatives left. And buyers said they were afraid to report negative experiences for fear of receiving retaliatory feedback.
  
  
• Changes also geared toward differentiating "between the seller who provides service right the first time and one who fixes problems."
  

(This earned massive boos from the audience!)

• When it becomes available, use the Sellers Reporting Hub to report bad buyers.
  

Hot Topic #2: Neutrals counting as negatives in the feedback percentage

You said:

Counting neutrals as negative is...

• Inaccurate. Neutral doesn't mean positive or negative - it means neutral.
  
  
• Misleading. The new neutral calculation has been made retroactive one year... so buyers didn't know they were effectively leaving a negative when they left a neutral.

eBay said:

A neutral is most often a "soft negative":

• Large numbers of neutral feedback with negative comments indicate that buyers were afraid to speak their mind about negative seller experiences.
  
  
• Because a neutral is considered a "soft negative," it only affects your feedback percentage and NOT your feedback score.
  

However, now that buyers don't have to fear being left a retaliatory negative, eBay says they will take another look at this policy to see if it's still necessary.

Hot Topic #3: DSR penalties

You said:

• Even sellers who are offering free shipping and tracking numbers are getting marked down on their shipping DSRs.
  
  
• DSR descriptions do NOT accurately communicate what each rating means - and the consequences of leaving "four stars."
  
  Larry Phillips of LeavingFeedback.com summed it up in the Evolving Feedback discussion group: "According to your descriptions and your words, if my description is accurate, and my communication is good, and my shipping time is quickly, and my shipping cost is reasonable, I will lose my PowerSeller status and I will be disadvantaged in search."
  

eBay said:

Focus on shipping time and cost to improve shipping DSRs:

• Use the right tools (e.g., printed labels with barcodes generally go through customs faster)
• Lower shipping costs and increase sale price
• Offer flat-rate or tiered service
• Communicate shipping expectations
• Use a shipping system

They were open to finding better ways to communicate with buyers... but it's also your job to educate buyers about what 5-star service means:

• Establish a "5-star mind set" and set expectations. For example, you can leave automated positive feedback for buyers when they pay (e.g., Thank you for being a "five-star buyer").
  
  
• Be clear about ways to raise problems
  
  
• Underpromise and overdeliver
  
  
• Reduce shipping costs and raise your selling price
  
  
• Take advantage of your 31% UPS shipping discount to offer more competitive shipping prices

Although the new feedback system looks like it's here to stay, eBay said they also recognize it's a work in progress. So keep your eyes peeled for new updates.

Got anything to add about the new feedback system?

Email us at ebaynewsletter@marketingtips.com.


3. Top Three Takeaways from eBay Live
1) The new feedback system is here to stay

In the keynote Address, John Donahoe was quick to address the recent controversial changes to the marketplace. "Change is hard, but essential."

The rationale?

• Attract more buyers, so sellers - and eBay - succeed
• Create a healthy vibrant "people's" community

The new feedback system is meant to "do right by people who do the right thing" and reward behaviors that give buyers what they want.

And eBay says the new system is working. Average DSRs are higher across the board:

	4.6 and higher	4.8 and higher
January 2008	60%	15%
June 2008	67%	33%

Sellers who make buyers happy as reflected by high DSRs get more visibility in search and higher Powerseller discounts. (Read about the latest incentives offered to top sellers and PowerSellers in Section 7.)


2) eBay pays more attention to marketing

There was an increased emphasis on marketing at eBay Live. Besides eBay store marketing and tools classes, renowned Internet marketers Seth Godin, Jay Berkowitz, and Andy Sernovitz also contributed.

Looks like they've finally caught on to what we've been teaching our clients for years: Actively promoting and marketing your eBay business is the ONLY way to grow and achieve real online success.


3) eBay is becoming a contained system

eBay's introduced a number of new policies that are making it pretty much impossible to promote your off-eBay website.

Let's take a look at eBay's latest no-nos:

• No linking off eBay: Linking from any eBay page (including your About Me page or eBay blog) to an off-eBay page is no longer allowed.
  
  You CAN still link to a web page with more information about an item you're selling on eBay, however, that page can't have any navigation links on it - period (even if the navigation links to another information page).
  
  Meanwhile, eBay is displaying Yahoo PPC ads at the bottom of the search results page - driving traffic away from YOUR listings and off the eBay site (while offering eBay a new revenue stream). Those sponsored links directly contradict eBay's own rules!
  
  When questioned by one of our Advanced eBay Mentors, eBay said only that they were testing the ads, and would be looking into ways for eBay sellers to purchase this type of advertising on their site.
  
  
  
• No giving out your email address. Starting in September, emails between buyers and sellers will rerouted through eBay's system and given an anonymous email address. The only exceptions are those related to actual transactions.
  
  And as part of this new email system, you'll no longer be able to include your email address in your listings.
  
  According to eBay, "anonymous email addresses are becoming an industry standard that adds an additional level of safety."
  
  This makes some sense for buyer to seller communications sent through the eBay system. But not allowing sellers to provide a contact email address in their listings seems to be more about making sure all emails are confined to the eBay marketplace.
  
  

There was a lot of talk at eBay Live this year about eBay being a platform for sellers' growth. Clearly, this is restricted to growth on eBay only.


4. eBay removes restrictions to offer more choice to your buyers
Now that eBay's removed their "Choice" listing policy, you can now offer more choice to your buyers - in a single listing.

Under the old policy, if you carried five different colors of the same pair of shoes, you had to create a separate listing for each color. But now you can list all the colors you offer in one shot to your heart's content. (Same goes for different sizes.)

There's just one caveat:

According to eBay policy, you're obligated to provide your buyers with the items offered in your listing. So if you list multiple items, make sure you track your available inventory so you can provide everything offered in your listing. If not, you could get slapped with a Seller Non-Performance charge.

Obviously, you can't list completely different items in a single listing either or you'll be in violation of eBay's Fee Circumvention policy.

Yay! More choice. Fewer fees. I'm down with that.


5. Are you part of the new Item Page tests?
eBay is testing out a new Item Page on about 1% of the marketplace... and in our opinion, there's good news and bad news.

Let's start with the good:

• The photo that's displayed at the top of your listing is twice as big as it used to be. (And more photos have been added in boxes below this one.)
  
  
• A countdown timer appears in the last 24 hours of your auctions.
  
  
• Item condition and return policy are featured more heavily at the top of the listings.
  
  
• Cross-promotion boxes now get higher billing on the right-hand side of the page.

The bad:

• Unfortunately, the bulk of these changes mean that the words in your item description get way less attention - and ultimately, it's your headline and the words in your item description that SELL your product!
  
  
• Crucial information about your shipping policies is now located in a tab that require your visitors to make an extra click... but statistics show that you risk losing buyers with every "click" you ask them to make.
  
  And I have to wonder how many people will bother to click that tab to find out the very information you're supposed to be communicating to buyers to prevent negative DSRs

Here's what the new page looks like:



Comments, questions? Give eBay your feedback before it gets rolled out on a grand scale.


6. Top eBay sellers get top billing in Best Match search
Are your Detailed Seller Ratings over 4.7?

If so, you could be laughing all the way to the top of the search results. eBay is rolling out tests that will reward DSR superstars with even MORE prominence in the Best Match search results.

So long as you've received 3 DSR ratings of 4.7 and above in the last 30 days, your listings will qualify. (Sellers without this minimum number get normal exposure in the listings.)

So keep your eyes on your DSRs - and do everything you can to keep them as high as possible.

You can use your Seller Dashboard in My eBay to monitor your ratings and track any changes you make. (This option automatically becomes available when you've received enough detailed ratings within a 12-month period.)

Use it to get behind the wheel of your business and find out:

• Whether you qualify for improved visibility in Best Match searches
  
• How your Detailed Seller Ratings compared to other sellers' averages
  
• What your PowerSeller discount rate is
  
• What your buyer satisfaction rate is
  
• If any of your listings are in policy violation
  
• What you can do to have account restrictions lifted from your account

Here's an example of your DSR progress:



Registered sellers who have received at least 10 Detailed Seller Ratings within the past 12 months can access the dashboard through My eBay.


7. New Powerseller benchmarks
Not to be left out, Powersellers who get top DSRs will get even bigger rewards than regular sellers. Now PowerSellers:

• With 4.9 or higher across all four DSRs will receive a 20% discount on their final value fees starting in July. If this seems like an impossible benchmark, eBay says that 16% of Powersellers qualify for this discount.
  
  
• Who maintain 4.8+ DSRs AND who have $500,000 or 50,000 items sold a month will achieve "Diamond status." The benefits include the same as the current "Titanium" level for now. But eBay will consider other fee discounts made on a case-by-case basis.

And depending on their DSRs, PowerSellers can now save an extra 23% on UPS Ground Daily Rates on top of the 31% savings given to eBay sellers.


8. Will PayPal rule the eBay world? Not in Australia!
Every time eBay comes out with a new rule to protect the security of buyers and sellers, it usually involves using PayPal as a payment option.

This is definitely the case in Australia, where eBay is trying to make PayPal the only payment option Australian sellers can include in their listings. (They're already required to offer PayPal as one of their payment methods.)

According to eBay, PayPal is the most secure payment option and will increase the feeling of trust between buyers and sellers.

At least, that was the premise of their argument when they filed a petition with The Australian Competition and Consumer Commission (ACCC).

But competitors such as Paymate and BPay don't agree... and neither does the ACCC.

They refused eBay's request to bypass The Australian Trade Practices Act which prevents exclusive partnerships that will lesson competition:

"The effect of substantially lessening competition in the market in which PayPal operates will likely result in reduced choice for consumers, higher transactions costs, and reduced innovation in online payment systems."

eBay has another chance to state their case at a public hearing in front of the ACCC, who may still reconsider their ruling.

And in case you're wondering if eBay.com will start introducing PayPal-only payment options for US-based sellers, the answer is "no" - at least that was the official response at eBay Live.


9. Auction of the Month: The auction of a lifetime!
When Ian Usher of Perth, Australia separated from his wife, he decided it was time for a fresh start.

But he didn't just want a vacation, a new job, or even a new house. Ian decided it was time for a new life. And to do that, he needed to get rid of his old one.

So he put it up for auction on eBay!

At the time of writing, Ian's life has attracted a top bid of AUS $390,300, with more than three days of the auction remaining.

Ian is offering almost everything from his life in the auction - except his name and identity. The winning bidder will get his three-bedroom house, car, motorbike, jet ski, lifestyle... even his job at a rug store and his friends!

Ian, meanwhile, intends to catch the first plane out of town to begin his new life.

Not surprisingly, the auction has attracted attention from all over the world. But without putting your entire life and possessions up for sale, what can you learn from Ian to generate lots of interest in your own auctions?

Tell a story

People love to read unique and interesting stories online – and telling a story in your salescopy is the best way to make your potential customers curious about you and your product.

Telling a story also gives you a chance to relate to your reader so you can gain credibility, earn their trust, and overcome any objections they may have - all while you make your sales "pitch."

In Ian's case, he has used his eBay listing, his website (www.alife4sale.com), and YouTube videos to tell readers about his life and background – and give them daily updates on the auction.

You don't have to go that far... just make sure your story relates to the product you're selling. Talk about why you're selling it, why you like it so much, or why you've decided to make an eBay business out of it.

Let your passion for your subject matter shine through - and you'll soon get potential buyers excited too!

Sell something unique

eBay's a great place to sell rare, collectible, or hard-to-find items. Of course there's nothing more unique than a person's entire life, but you can still generate a bidding frenzy by emphasizing how special YOUR item is.

It's also important to check out the competition (http://listings.ebay.com) and find out if there's a demand for your product (http://pages.ebay.com/wantitnow).

Read the Bidding Frenzy Issue #29 newsletter for more on how to sell rare or collectible items on eBay.

Use videos and photographs

Ian has included dozens of pictures and videos in his listing to cover every angle of his life. Check out his YouTube channel at http://youtube.com/user/ALife4SaleVideos.

Photographs are great for adding depth to your salescopy, but videos can help you connect with your potential customers in a completely different way from words and pictures.

Don't just use video for the sake of it, though - make sure you "add value" to your listing. For instance, you could show your product in action to help potential customers imagine themselves using it.

Develop your own website off eBay

You can use your own website outside eBay to sell your products as well - or to simply direct potential customers to your eBay listings.

In Ian's case, his site (www.alife4sale.com) serves the purpose of providing more in-depth information and driving traffic to his auction.

You can even earn money from eBay without selling ANYTHING yourself - by signing up to eBay's Partner Network affiliate program at www.ebaypartnernetwork.com.

As an affiliate, eBay will pay you commission for any sales that result from people clicking through to eBay from your site. You can easily create your own website with BeBiz - our complete Internet business builder. Check it out at www.bebiz.com.


10. Final thoughts
That's it for this month!

As you can see, feedback is a hot topic these days. And if YOU have strong feelings or questions about it, make sure you send them to eBay.

eBay says they want to hear what you have to say. And already because of feedback given at eBay Live, eBay has been hinting they that they will be making some changes as a result (like bringing back the Mutual Feedback Withdrawal process maybe?). We'll see.

If you happen to come across the new Item page, make sure you keep a close eye on your shipping DSRs to see if having the information hidden is having a negative impact on sales... then let eBay know!

I'm sure there will be even more dramatic changes coming in the following months - and we'll keep you posted!

Until then...

Happy eBaying!

Derek Gehl
www.auctiontips.com