Ebay suspends sellers every day, and it's not news, because they needed to be suspended.
What makes this death wave different is that the sellers who are being axed are long term, medium sized sellers whose infractions are either minor or non-existent.
The list of common factors:
- Seller misjudging the effect of low stars and unresolved cases.
- Sudden transition from Top Rated Seller to indefinitely suspended.
- Accusations by buyers that the seller is selling fake or counterfeit items.
- A change in Ebay software which automatically opens a case whenever buyer contacts seller to inquire about the purchased item.
That part isn't news. The part that catches sellers unaware is how few such bad scores it takes to kill. Unresolved cases are especially costly, and sellers end up with unresolved cases when they are willing to resolve the case but expect more time.
Bottom line: 4 bum stars can kill. 3 bum stars + 1 unresolved case can kill. Three unresolved cases are almost always fatal.
How could I go from TRS and all good stars to dead overnight?
The Ebay business model would confound anyone who seeks to analyze. Several counter-intuitive factors catch sellers unaware:
- The evaluation period is back-loaded. Seller is being judged today on things which occurred up to a year ago.
- Feedback is by nature delayed. The bum star which takes a seller down may have involved a sale from two months ago.
- For most, there is no intermediate sanction. You're alive and among the best, then you're dead. This is the most dumbfounding aspect. We're not discussing crooks here, even in Ebay's evaluation. At most we're discussing sellers who need to be making some tweaks to their business model.
- Even when seller can see it coming, often there is no possible way to avoid the grim reaper.
This is particularly devastating to those who sell branded merchandise where the brand pursues real violations. Some brands routinely challenge the authenticity of any listing using their brand. Dunkin Donuts brand coffee for example claims than DD brand coffee is always counterfeit unless sold directly by DD. Sellers have been offed because they found a bargain on DD coffee at Walmart, and started listing what they bought on Ebay, only to find their listings taken down, and then, the permanent axe falls.
Ebay software behavior does not match Ebay policy
Mid 2013 Ebay made a change in how cases get filed, in a well intentioned effort to suppress inappropriate buyer demands for refunds. When buyer contacts seller, a case is now automatically filed. At the time, it was explained that the case being filed would not affect seller's standing, unless seller lost the case. That remains the policy today.
However, by many credible reports, the number of filed cases has been used as the basis of permanent seller suspensions.
Ebay Customer Service reaction.
Ebay customer service is largely uninformed about the climate change of the past three months. Common reaction when a seller contacts Customer Service is to be told two clear statements.
- Permanent means permanent.
- We wish you well selling anywhere but Ebay.
Is this ever going to be fixed, and if it does, what about currently suspended sellers?
What is going on now is beyond any logic, and thus, we can expect it to be fixed. All sellers, except those who are protected by special arrangements with Ebay, are currently threatened. As these sellers see their business taken down, some competitor will inevitably rise to pick them up. Somewhere along the line Ebay will wise up, and fix what is broken.
It remains to be seen when that will occur, and what Ebay will do regarding their discarded sellers.
What can sellers do to avoid sudden death?
I for one continue to sell, but I am exceptionally wary. Here's some concepts.
- Contest any low star to the logical limit. Many low stars can be removed, understand the rules regarding such removal
- Learn from the low star, even if it is removed. Stop putting all blame on buyer, see if buyer might have a point. Bum stars are a major threat, and the primary defense is to avoid them.
- Do not ever allow an account to accumulate three low stars. Once you're selling with three bum stars, a variety of bad luck situations can take seller down. Sell on another account.
- Resolve cases by refunding early. Do not bet that Ebay will see your side and protect you.
- Do not trust Customer Service when they send you into some kind of battle with the promise that you will win the case. Dead sellers can tell you why. That CS rep has not interest, let alone the power, to revive a permanently suspended seller.
- Avoid contested brands. It's unfair. UnAmerican. All of that. But you want to sell or do you want to be a crusader?
- Ship fast, either today or tomorrow when buyer pays. If you feel you can't do that, you may not be suited to selling on Ebay here in 2014. You're going to take too many incoming complaints, and those complaints are going to take you down.
- Don't charge sales tax whenever possible, and if you do, make it very clear up front that the tax will be charged. You'd rather lose the sale than take the bum star.