eBay on the threshold of great rearrangements

[img_assist|nid=7056|title=|desc=|link=none|align=left|width=100|height=42]According to the latest statements of eBay representatives the company is rearranging its activity. The officials are changing the fees and merchant regulations.

These changes implemented at present time are directed to meet eBay efforts in increasing transaction volumes and profits of the company. One more fact to be taken into consideration is a rivalry posed by Amazon.com especially in view of its gaining many eBay customers for the last several years.

The marketplace business growth does not meet expectations of the direction in spite of the revenue exceed in fourth quarter. In 2008 year perspective a gloomy picture may be seen in accordance with forecasts accompanied by the growth slowdown.

For 10 years customers were happy with the market policy of eBay. But as per dialectics laws everything in the Universe should grow and change. Customers are always first to realize that. Thus eBay developers plan to shift the expectations of all and improve their experience to assist eBay's best merchants to be a success at the market.

"The Web has evolved around us, and what sellers and buyers have come to expect has evolved right along with it. Today, buyers want a very high level of value, selection and convenience. They want to shop on their own terms in a safe, easy-to-use environment. Sellers want a platform that meets the reality of doing business online today and that scales to their needs," says John Donahoe, successor of Meg Whitman as president and CEO.

The company lowered the insertion fee by cutting the cost of listing items by 25 percent to 50 percent whereas it increased the final value fee from 5.25 percent to 8.75 percent. Surely fee changes vary by the country, but they are applied to most eBay merchants.

Besides the company is changing its search system that will allow merchants with higher buyer satisfaction ratings to be better exposed. As regards merchants with the same ratings but on a lower level they will get less exposure on search results. Moreover eBay is said to require a "safe payment option," such as PayPal or a major credit card, from merchants with lower customer satisfaction and from those in product categories that generate many buyer complaints. This gives buyers more protection when transacting with these merchants, said Bill Cobb, president of eBay North America.

In addition eBay is altering the PowerSellers program introducing a new parameter called DSR (Detailed Seller Rating). Now buyers may rate the sellers by the following four items: rate the seller specifically in four areas with a scale of one to five stars: accuracy of item description, communication, shipping time, and shipping and handling charges. Merchants achieved better scores per these parameters are to get from 5 to 15 percent discounts off final value fees. The program is to be started in July.

To continue the list of innovations offered by eBay one more item should be mentioned. The auction is reorganizing its feedback structure. Now merchants are allowed to leave only positive feedback for the buyers to put an end to "a disturbing trend" of sellers using feedback system to retaliate against buyers by giving them low ratings. Sellers in their turn are to be protected against inaccurate feedback from buyers, such as removing negative and neutral feedback when a buyer fails to respond to an "unpaid item" inquiry. All negative and neutral feedback from buyers suspended are to be removed.