September 2008

Message from Derek Gehl STRATEGY UPDATE: Panic-mongering aside... how have eBay's changes really affected sellers? Your eBay listings cheat sheet Finger on the Pulse Ads on eBay listings eBay's headcount drops Final thoughts

1. Message from Derek Gehl
This year we've seen more changes in eBay's rules and procedures than any other time in the site's history... in fact it became almost a joke around here as my staff and I worked on the 2008/9 version of the Insider Secrets to Selling on eBay course!

I can't tell you how often I'd see someone muttering "Stoopid eBay" as they hunched over their computer rewriting big chunks of a lesson that had suddenly become obsolete because eBay had made yet another announcement.

(It was worth it though -- check out the most up-to-the-minute eBay selling course on the market!)

For sellers, though, this huge overhaul was anything BUT a joke. Everyone has been talking endlessly about it and there's been more than a little criticism.

Many sellers have even abandoned the marketplace in protest!

But once all the rumors have been cleared out of the way, has it really been all bad news for sellers? Our advanced eBay mentors have been rigorously adapting and testing their strategies to find out -- and their results are in. Read our feature article to find out the effect of eBay's three biggest changes.

If your head is still spinning from eBay's latest rash of listing format updates, we've also included a listing "cheat sheet" for you. Find out what items to list in what format for maximum results.

And as usual, we'll fill you in on the latest news in the world of eBay...


2. STRATEGY UPDATE: Panic-mongering aside... how have eBay's changes really affected sellers?
It feels like we've been talking about eBay's changes for quite a while -- with strategies, reactions, and speculations coming out of everyone's ears. But now the dust has settled and the new eBay is fully operational, it's time to look at how you have really been affected by what has happened.

We spoke with our Advanced eBay coach, Carson Clark, to get the lowdown on... well... the reality of what the changes have meant to sellers like you.

So here's our easy guide to the three biggest changes eBay made, the strategies we suggested, and their end results:

Change #1: Best Match Sort Order

Best Match is now the default format for finding items.

This means that when someone searches for an item, the results are no longer shown by the time the auction ends. Instead, they are based on an internal algorithm that is influenced by item title, relevance, seller reputation, item specifics, and other factors.

Strategy

Keep your DSRs high and pepper your title and listing with the keywords people are searching for (as long as they're relevant to your product).

Result

IMC Advanced eBay mentor Carson Clark is getting considerably more viewers as a direct result of increased exposure in Best Match Search.

Carson reports, "I sold a guitar on eBay recently, and it got almost 400 viewings in a 5-day period. Now, the bids per viewing were still very typical -- about 1 bid for every 11 viewings. But by getting that extra 60 or 70 viewings that I would not have gotten for this item three months ago, my bottom line is that much higher."

Newer sellers may have to work a little harder to establish a good reputation, but the long-term effects on your business are worth it.

Conclusion

Diligent sellers with good business practices are being rewarded.

Carson is a particular fan of this change, saying "This benefit is something you can actually cultivate yourself through your own good practices. You have control over it, which will help you immeasurably.

"As a result of this change, professional sellers who are paying attention to their customer service are benefiting, and poorer sellers are suffering. It's as simple as that."

Change #2: Feedback

Sellers are no longer able to leave negative feedback for buyers.

Strategy

Carson Clark comments on his strategy:

"The feedback changes were made in late June, early July. I have personally completed almost 500 transactions on eBay since then, and I haven't received a single bad feedback rating, with just a couple of neutrals, and the rest were good.

"The reason I am still getting very high feedback scores? Easy!

• I provide a high level of service
• I remember the core eBay value -- that people are generally good at heart
• I accurately describe my products
• I put my products in the mail right away
• I actively follow up with my customers
• I communicate with the recipient, and
• I follow up with my customers to make sure they're satisfied with the transaction.

"In essence, it can be boiled down to good customer service."

Result

In the past, sellers holding feedback over buyers' heads often stopped the buyers from leaving honest responses about their experiences. This created a culture where buyers and sellers became obsessed with getting a positive feedback score, regardless of how the transaction really went.

So, in effect, the feedback (which is a testimonial to your credibility as a seller) was essentially meaningless. At the same time, some sellers held the threat of bad feedback over buyers' heads, and vice-versa. That was all very well and good, but the buyers' response to getting negative feedback was to just give up and leave eBay, which was bad news for everyone.

Now, without the threat of retaliation, buyers can leave a credible testimonial. Your feedback may not be 100% anymore, but all sellers are going to be affected equally, so buyers are now going to know who the real professional sellers are.

This means that if you use strategies to keep your feedback score high, you will actually be more attractive to the sellers now, despite not having a 100% feedback score.

Carson reports that his own feedback is "around 99.5%. This is very credible. You might not think it's as good as it was before, but a 99.5% in this new climate means MORE than a 100% rating meant in the old system."

Conclusion

The sellers who treat their customers poorly -- who don't follow up, who don't care about the customer -- are the ones who are suffering, who are whining and complaining, and who are seeing their feedback ratings drop down to 80% or 70%... these sellers are the reason people were leaving eBay in the first place.

The new system is working as intended and weeding out the dead wood.

Change #3: Detailed Seller Ratings

eBay implemented Detailed Seller Ratings (DSRs), which allows buyers to rate four different aspects of a transaction: shipping time, item as described, communications, and shipping costs.

eBay rewards sellers who maintain above-average DSRs by giving fee discounts and enhanced visibility in the search results (including Best Match).

Strategy

DSRs are your chance to actually manipulate where your listings are going to appear on the search pages -- your actions can directly affect that exposure.

Be honest with your buyers -- if something's not in mint condition, if it has a scratch, if it's a factory second -- tell them about it and you will be rewarded. Communicate with your customers, ship items right away, and keep your shipping and handling rates fair and competitive.

Carson also suggests an extra strategy for making sure your customers give you high DSRs:

"Here's the 'secret': You can train your buyer to give you a 5 by ASKING them to give you a 5! Tell them, 'If you give me a 4, it's going to actually cost me money, which means I can't keep bringing you the best deals. So, if you have any problems whatsoever with your item -- if it's not what you expected, if it's not the condition you thought, whatever -- send it back. I'm happy to refund you. Email me, let me know, I'm happy to talk about it. I'm happy to communicate with you! Keep me informed of problems, and I'm ready to help you."

"Explain to them that you need 5s -- you need those high ratings to keep at the top of your game. You just need to educate them that what eBay is telling them isn't exactly true, and ask them to give you higher ratings."

Result

This change is going to take a while to really hit its stride, since sellers need to build up their DSRs over time. However, Carson is a strong advocate:

"Search results are no longer random or just "ending soonest." Now it's a case of "I have a higher level of customer commitment, so I'm being rewarded."

"My higher listings in the Best Match criteria are largely down to having high DSRs. If my guitar listing, for example, had just crawled up the search pages based on the time the auction ended, I would never have sold it for as much."

And after eBay mentor James Lewchuck started asking for top DSR ratings from his customers, he also reports: "Since I started sending out email encouraging my buyers to leave 5 stars, I've got DSRs of 5 / 5 / 5 / 4.9 for the last 30 days!"

With those Detailed Seller Ratings, he got better placement in the eBay search results and some very welcome fee reductions as well.

Conclusion

Those sellers who are paying attention to their customer service are suddenly rising above those who don't. By enacting the DSR strategies you learn here, you can actually get more viewings, more exposure, and more bids.

For more in-depth information about how you can WIN with the new eBay, check out our brand-new Insider Secrets to Selling on eBay course. Not only is it right up-to-date now, it will incorporate new changes as they happen, so you'll always have a completely current copy.


3. Your eBay listings cheat sheet
Now you know good sellers are still getting top results on eBay, it's a great time to go back and have another look at how you're listing your products.

Are you getting the most out of the new eBay? Will you be able to save money by listing a different way?

We've created this quick cheat sheet you can use to compare listing options...

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Auction Listings

Start-Up Fee

FREE

Listing Fee

$0.10 - $4.00 for each item

Final Value Fee

8.75% of the first $25.00 +
3.50% of the initial
$25.01 - $1,000.00

http://pages.ebay.com/help/sell/fees.html

Best For...

Highly sought-after items, like the Nintendo Wii, sell well in auctions. Rare or collectible products, like antiques, are also best in this format, as well as anything unusual or wacky (rhino poop, for instance).

Conclusions

If you have items that sell quickly, auctions are best for you. You can save on fees by listing them for a low reserve (just be sure the bidding will push up the price!). Perfect for "hot" products everyone wants.

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Fixed Price Listings

Start-Up Fee

FREE

Listing Fee

$0.15 - $0.35 for each item for up to 30 days

Final Value Fee

6% - 15% of the first $25.00 +
3.75% - 9% of the initial $25.01 - $1,000.00

http://pages.ebay.com/sell/August2008Update/BasicFees/

Best For...

Fixed price listings are excellent for products you have multiple supplies of and for everyday commodity items.

Conclusions

Perfect if you know how much your item will sell for. If you have a supply of the same product, you can sell in a multi-item listing to get longer exposure (30 days). More expensive items will cost less to list here.

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eBay Stores

Start-Up Fee

$15.95 - $299.95 per month

Listing Fee

$0.03 - $0.10 per 30 days (covers a single listing with any quantity of that item)

Final Value Fee

12% of the first $25.00 +
8% of the initial
$25.01 - $100.00 +
4% of the initial
$100.01 - $1,000.00

http://pages.ebay.com/help/sell/storefees.html

Best For...

Slower-moving items and products you have multiple supplies of. Stores are perfect for showcasing whole collections of merchandise as well (for example, a collection of jewelry).

Conclusions

Stores are ideal for testing, and for getting more traffic on and off eBay. Also, all formats of item listing (auction, etc) show up in your eBay Store, so you can play around with what works best.

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Classified Ads

Start-Up Fee

FREE

Listing Fee

$9.95 per 30 days per listing

Final Value Fee

There are no final value fees for Classified Ads because your transactions are conducted off eBay

Best For...

You have to use Classified Ads for electronically downloaded products like eBooks. They're also best for products (e.g., real estate) that require a lot of back-and-forth between seller and potential buyer before a purchase is made.

Conclusions

Useful for getting leads, promoting your affiliate programs, and sending people to your website. The Classifieds don't get as much exposure on eBay, so don't use this format for high turnover products.


4. Finger on the pulse
In among all the updating, eBay has also turned its attention to eBay Pulse.

If you haven't used eBay Pulse before, it's a great place to check out what's hot in the marketplace right now, and what auctions are being watched most closely. Perfect for getting ideas for your own listings!

New features include:

• Sections that display the most popular searches from eBay's main categories, as well as the biggest movers

• "Internet Pulse," which displays popular keywords from well-read blogs

Above all, eBay Pulse is a great spot for gathering the kind of information you can use to get a jump on your competitors. Keep an eye on popular keywords and products to see if you can organically integrate them into your own About Me pages, listings, and Store pages.

To check out the new eBay Pulse, go to: http://new-pulse.ebay.com/.


5. Ads on eBay listings
Controversy has sprung up surrounding a decision by eBay Australia to feature advertisements within sellers' listings...



So far the FoxTel ads have only appeared in media category listings and in the trading cards category.

Considering sellers pay for their listings, this new development has not been met with much positive enthusiasm. It could even be argued that the FoxTel ad (for a cable package) is in direct competition to many of the listings it appears in... something sellers are forbidden to do themselves.

Clicking on the FoxTel link opens a new browser window with the advertisement, with an offer that expires on October 18, so it remains to be seen whether or not the advertisements will continue after that date.

On a related note, if you're listing your items in the new Item page that's being tested across the eBay sites, you now have another cross-promotion option that has us scratching our heads: You can elect to showcase your competitors' items in your promotion boxes.

Or better yet, you can elect NOT to!

If you're part of the new Item page tests, make sure you turn this option off -- unless you want to send traffic to your competition!

Some sellers are also reporting problems with their item templates fitting into the new design. Templates that are too wide for the new design are being clipped off on the right. So it's a good idea to preview your listings before you post them.

(For a refresher on the new Item page, read the June Issue of Bidding Frenzy.)


6. eBay's headcount drops
2008 has been a bit of a tough year for eBay -- the company has faced lawsuits, boycotts from sellers, and the departure of several top executives (including CEO Meg Whitman).

Now it seems eBay will continue its purge. Reports have surfaced that 10% of the 15,000 employees working at the company will soon be laid off.

That's not exactly great news for anyone working at eBay, but how will it affect you and me?

Scot Wingo (CEO of ChannelAdvisor) believes there is only a 10% - 20% chance the layoffs will affect eBay departments that have any direct impact on the buyer or seller experience (like customer service or seller development).

Only time will tell... but it seems the shakeups are set to continue! At the very least, new execs and job shuffling will certainly affect the site as eBay struggles to stay competitive.


7. Final thoughts
For this month at least, it looks like eBay is taking a break from major changes. Now is the perfect time to put the strategies you've learned into play... so you can start reaping the rewards in the new eBay.

While other sellers are grumbling and boycotting eBay over what has taken place, YOU can swoop in and take their customers by making the most of the new policies!

Of course, the key here is to keep yourself informed. The more you know about eBay and its ever-changing face, the easier it will be for you to make the most of it... propelling you ahead of your competitors to achieve more and more sales.

That's where we come in! My team and I are always committed to bringing you all the latest in news and information from eBay.

And if you're after an even more in-depth analysis of how you can make your fortune on eBay, don't forget to check out our brand spanking new, fully updated Insider Secrets to Selling on eBay course, which is hot off the presses. After all, the more you know, the more money you can make.

Here's to your continued success on eBay!

Derek Gehl
www.auctiontips.com