evolving the ebay feedback system

Evolving the eBay Feedback System to Enhance the Marketplace

Moderator:

Brian Burke, DirectoreBay Global Feedback Policy

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Panel

• Brian BurkeDirector, Global Feedback Policy

• Amjad HanifSr. Director, Trust & Safety Product

• Jim “Griff” GriffithDean of Education

• Rishi TembeSr. Product Manager

• Clay KunzSr. Manager, Trust & Safety

What’s In It For Me?

• Learn about the recent changes to the feedback system– All sellers—changes help ensure buyer accountability– All buyers—changes allow for honest, accurate feedback– New buyers—what to look for when evaluating sellers

• Have you ever pondered these questions?– Why does eBay have a feedback system?– How do the changes improve the system?– What is eBay doing to protect me from dishonest buyers?– Why did eBay remove Mutual Feedback Withdrawal?– Why should I leave feedback?

Agenda

• Goal of the System• Why Did We Need to Make the Changes?• Key changes—Attaining Buyer and Seller

Accountability• Impact—Early Assessment • Upcoming Changes • Summary• Q&A

Buyer & Seller AccountabilityEvolution of the eBay Public Feedback System

Accountability through transparentbuyer and seller reputations

Accountability through transparentbuyer and seller reputations

Original System

Accountability through transparentbuyer and seller reputations PLUS

Some reporting and tools (UPI, INR)

Accountability through transparentbuyer and seller reputations PLUS

Some reporting and tools (UPI, INR)

Previous System

New SystemSeller accountability: Transparent seller reputation

Buyer accountability: Enhanced seller reporting and tools

Seller accountability: Transparent seller reputation

Buyer accountability: Enhanced seller reporting and tools

Complete transparency inhibits honest feedback,undermining accuracy and accountability

Why Did WeMake theChanges?

Summary of Situation Before Changes

• Top reason buyers reduced purchasing activity

• Buyer →Seller Neg. & Neutral Feedback rate was inconsistent with private buyer reports

• Insufficient differentiation between sellers • Buyers feared leaving honest feedback

Percentiles of Positive FB % & Average DSR

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

1% 2% 5% 10% 20% 50% 80% 90% 95% 98% 99%

Percentiles

Po

sit

ive

FB

%

3.5

3.7

3.9

4.1

4.3

4.5

4.7

4.9

Av

era

ge

DS

R

Positive FB % Average DSRs

Why Change Conventional Feedback—Update

• 50% of sellers had 100% Positive FB, 80% had 99.3%+• Buyers had difficulty differentiating sellers• DSRs provide additional differentiation

* Internal Analysis based on 8.8 Million active sellers Apr 01, 2007 and Jul 12, 2007

Retaliatory Feedback—Growing Problem

Ratio of Retaliatory Feedback

(Sellers vs. Buyers)

2004

2007

2X

Ratio of Retaliatory Feedback

(Sellers vs. Buyers)

8X

Key Changes:Attaining Buyer &Seller Accountability

Feedback Changes Overview

Buyers Sellers Both

• No more negative or neutral feedback from sellers

• Remove more negative and neutral Feedback

–Non-response to UPI process–UPI response undermines UPI or FB system–When a buyer is suspended

• Prevent negative and neutral Feedback–7 days of item end for PS on site >12 months –Within 60 days of Listing end

• Increase Buyer to Seller Communication–Enhanced interstitial page –Leave FB flow for cross border transactions

• Enhanced Seller tools–Buyer Requirement–New Seller Reporting Hub–Blocked bidder list

• Credit for repeat Feedback

• Discontinuation of Mutual Feedback Withdrawal

• Positive Feedback % based on past 12 months

• Neutral Feedback included in %

Feedback Mitigation—New Interstitial

Feedback Mitigation—Messaging to Buyers

New Buyer Requirements For Sellers

12

12

New

New

New Seller Reporting Hub & Entry

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

Mutual Feedback Withdrawal—Why We Removed It

• Why we removed it:– Difference between seller who provides service right the

first time and one who fixes problems– Reply & Follow-Up still available– Eliminate buyer harassment and unwanted contacts – Reduce Feedback extortion– Other product/policy changes reduce need for MFW

• Developing a solution for buyers to change Feedback – for exceptions

– We understand everyone makes mistakes

Policy—Key Changes

• Enhanced Feedback Extortion• Expanded Reasons for Feedback Removal

– Negative Statements which conflict with a positive rating– Unrelated comment replies or follow-ups– Replies to UPI without indicating dissatisfaction

• Customs fraud

• False reporting

http://pages.ebay.com/securitycenter/rules_policies.html

Impact:Early Assessment

DSR Data—Seller Differentiation

• Negative/Neutral Rate similar to before changes• More negative, less neutral Feedback• Percentage of low DSRs (1 or 2) increased

US Negative & Neutral Rates

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

05-1

1-20

08

05-1

2-20

08

05-1

3-20

08

05-1

4-20

08

05-1

5-20

08

05-1

6-20

08

05-1

7-20

08

05-1

8-20

08

05-1

9-20

08

05-2

0-20

08

05-2

1-20

08

05-2

2-20

08

05-2

3-20

08

05-2

4-20

08

05-2

5-20

08

05-2

6-20

08

05-2

7-20

08

05-2

8-20

08

05-2

9-20

08

05-3

0-20

08

05-3

1-20

08

06-0

1-20

08

06-0

2-20

08

06-0

3-20

08

06-0

4-20

08

06-0

5-20

08

06-0

6-20

08

06-0

7-20

08

06-0

8-20

08

06-0

9-20

08

06-1

0-20

08

06-1

1-20

08

06-1

2-20

08

Negative FB (%) Neutral FB (%) Combined N/N Rate

US Low DSR Ratings

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

05-1

1-20

08

05-1

2-20

08

05-1

3-20

08

05-1

4-20

08

05-1

5-20

08

05-1

6-20

08

05-1

7-20

08

05-1

8-20

08

05-1

9-20

08

05-2

0-20

08

05-2

1-20

08

05-2

2-20

08

05-2

3-20

08

05-2

4-20

08

05-2

5-20

08

05-2

6-20

08

05-2

7-20

08

05-2

8-20

08

05-2

9-20

08

05-3

0-20

08

05-3

1-20

08

06-0

1-20

08

06-0

2-20

08

06-0

3-20

08

06-0

4-20

08

06-0

5-20

08

06-0

6-20

08

06-0

7-20

08

06-0

8-20

08

06-0

9-20

08

06-1

0-20

08

06-1

1-20

08

06-1

2-20

08

Low DSR - Item as Described Low DSR - Communication Low DSR - Shipping Time Low DSR - Shipping Charge

Little spread More spread

DSR Adoption Rates Increasing

• More buyer participation

• Best practice: communicate to your buyers that your goal is to provide 5 star level service

Weekly DSR Adoption - Global and eBay.com

65%

67%

69%

71%

73%

75%

77%

79%

2008W15 2008W16 2008W17 2008W18 2008W19 2008W20 2008W21 2008W22 2008W23

eBay DSR Adoption Global DSR Adoption

UPI Waterfall – How much FB is Removed

Seller files UPI Seller files UPI

Reminder Reminder Mutual AgreeMutual Agree

No ResponseNo Response Pay / DiscussPay / Discuss

77% 23%

43% 34%

Source: Data Warehouse 50,000 UPI sample from Nov 2007

100% of Buyer FB is removed

Some (20%) buyer FB is removed

Very little (1%) is removed (less negative left for mutual)

Unpaid Item Rates

• 34% of the time buyer responds with…Disposition of UPIs with BtoS N/N feedback

Buyer blames seller: payment method

7%

Buyer blames seller: Shipping charges

4%

Buyer states payment made or on

its way45%

Buyer blames seller: Communication

14%

Buyer blames seller: changed terms

11%

Buyer left Abusive comment

1%Buyer Included

nonsense statement0%

Buyer purchased item elsewhere

1%

Buyer cannot pay: No fault of seller

17%

Neutral Feedback in %

• Better representation of seller performance– difference between seller with 2% and a 0.5%

neutral rate

• Impact of including Neutral Feedback– 10% of sellers were negatively impacted– 11% of PowerSellers Positive % fell below 98%– On average sellers scores dropped 0.5%– Majority (90%+) of scores were not impacted

Summary

We Heard You Last Year

• Ideas from last year implemented– Credit for repeat Feedback– Limit buyer from leaving Feedback– Enhanced protection for Unpaid Item

• not perfect, but better• we will continue to work this issue

– Half.com sellers now eligible for DSRs

Summary

• Changes are designed to hold both buyers and sellers accountable in the marketplace

• Buyers should accurately rate sellers – use the full spectrum of DSRs and Feedback

• Sellers should report buyers who violate policies & use the Buyer Requirement Tool

• Keep imperfect ratings in perspective– Use them to improve

– Compare yourself to competition, not 5 stars or 100%

Q&ABrian Burke

bburke@ebay.com

Amjad Hanifahanif@ebay.com

Jim “Griff” GriffithGriff@ebay.com

Rishi Tembertembe@ebay.com

Clay Kunzckunz@ebay.com

To learn more, visit www.ebay.com/education

Thank you!