evolving the ebay feedback system

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Evolving the eBay Feedback System to Enhance the Marketplace Moderator: Brian Burke, Director eBay Global Feedback Policy

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Page 1: Evolving the eBay Feedback System

Evolving the eBay Feedback System to Enhance the Marketplace

Moderator:

Brian Burke, DirectoreBay Global Feedback Policy

Page 2: Evolving the eBay Feedback System

Important Information

• This information is copyright © 2008, eBay Inc. All rights reserved.• No part of these materials may be reproduced or transmitted in

any form, by any means (electronics, photocopying, recording, or otherwise) without the prior permission of eBay Inc.

• eBay, eBay Live! and the eBay logo are registered trademarks of eBay Inc.

• Other brands and trademarks are the property of theirrespective owners.

• Please do not take our picture or record the class without asking permission.

Page 3: Evolving the eBay Feedback System

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

Page 4: Evolving the eBay Feedback System

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?

Page 5: Evolving the eBay Feedback System

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

Page 6: Evolving the eBay Feedback System

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

Page 7: Evolving the eBay Feedback System

Why Did WeMake theChanges?

Page 8: Evolving the eBay Feedback System

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

Page 9: Evolving the eBay Feedback System

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

Page 10: Evolving the eBay Feedback System

Retaliatory Feedback—Growing Problem

Ratio of Retaliatory Feedback

(Sellers vs. Buyers)

2004

2007

2X

Ratio of Retaliatory Feedback

(Sellers vs. Buyers)

8X

Page 11: Evolving the eBay Feedback System

Key Changes:Attaining Buyer &Seller Accountability

Page 12: Evolving the eBay Feedback System

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 %

Page 13: Evolving the eBay Feedback System

Feedback Mitigation—New Interstitial

Page 14: Evolving the eBay Feedback System

Feedback Mitigation—Messaging to Buyers

Page 15: Evolving the eBay Feedback System

New Buyer Requirements For Sellers

12

12

New

New

Page 16: Evolving the eBay Feedback System

New Seller Reporting Hub & Entry

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

Page 17: Evolving the eBay Feedback System

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

Page 18: Evolving the eBay Feedback System

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

Page 19: Evolving the eBay Feedback System

Impact:Early Assessment

Page 20: Evolving the eBay Feedback System

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

Page 21: Evolving the eBay Feedback System

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

Page 22: Evolving the eBay Feedback System

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)

Page 23: Evolving the eBay Feedback System

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%

Page 24: Evolving the eBay Feedback System

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

Page 25: Evolving the eBay Feedback System

Summary

Page 26: Evolving the eBay Feedback System

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

Page 27: Evolving the eBay Feedback System

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%

Page 29: Evolving the eBay Feedback System

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

Thank you!