Digital Downer

At lunchtime on March 24th 2008 the world lurched for Sellers of digital goods on eBay. Brian Burke, eBay’s Director of Global Feedback Policy announced that effective March 31st all goods that can be digitally downloaded or transferred electronically must be listed using the Classified Ads format.
We are not talking solely about purveyors of 1c eBooks on how to make your first million on eBay; although there are many of them. I was surprised to find this policy affects an enormous range of Sellers including designers of craft patterns, logos and templates, business consultants, accountants, photographers and artists, musicians etc. Anyone who sells a product on eBay.com (USA) which is delivered as a download or by email is effectively out of business with 7 days notice. Sellers on other international sites are required by law to be given 30 days notice and they will be gone by the end of April.
The stated reason for the policy is feedback manipulation by those dishonest and untrustworthy Sellers. Quotes are from Brian Burke on eBay Chatter
Most items that require digital delivery, once created, can be very easily replicated. This ease of replication creates the opportunity for sellers to list thousands of the same item in an attempt to manipulate the Feedback system. It also creates a perception that even legitimate sellers of Digital Goods are manipulating the Feedback system.
A little thought reveals the holes in the theory and why is it always the Sellers who are crooks?
Once upon a time to become a PowerSeller you needed to sell $1000 Gross Sales Value per month for three successive months. In November 2007 eBay changed that
to include both high volume “seasonal” sellers and sellers who move a high volume, but with a low average sales price.
That opened the door to hordes of new PowerSellers who qualified by selling as little as $100 GSV monthly. PowerSeller Status confers benefits and benefits cost money.
Sure enough here it is:
Today less scrupulous sellers have more to gain from manipulating their Feedback and Detailed Seller Ratings, which are also an important factor in a seller’s performance in Best Match and their eligibility for benefits (like PowerSeller eligibility and discounts). This makes feedback manipulation an even greater concern for the marketplace. Not only is safety and integrity of the Feedback system an issue, so is the fair administration of seller standards and rewards.
Ease of replication Oh gimme a break! Anybody can buy or create a small object, shippable in a regular first class envelope for pennies per dozen and sell them singly at 1000% markup, providing a feedback enhancement service and making a profit. Not as much profit as through digital downloads, & with greater risk but the market opportunity exists.
Follow the money trail
Question: Couldn’t eBay have established a minimum dollar amount for these listings that would eliminate potential feedback manipulation?Answer: We considered that option, as well as a number of other alternatives — for instance, we considered allowing only approved sellers to list these items. After investigating these and other alternatives, however, we determined that the Classified Ads format provides a more flexible and scalable solution for our sellers.
Classifieds
The cost of a Classified Ad is $9.95 per month. Sellers can take advantage of the special benefits of using this format. For instance, you can combine multiple similar items in the same Classified Ad. If you sell standard listing templates, for example, you can include all your listing templates in the same ad. If you also sell eBooks on how to list, you must use a separate ad
Finally, from the destroyers of the feedback system:
The integrity of the Feedback system has always been a critical part of trust on eBay. As the company focuses on improving the buying experience, we’re working on a number of initiatives to improve the integrity of Feedback and ensure buyer Trust.
Ina Steiner of Auctionbytes did an interview with Brian Burke last year.
Next post . . . the Workshop featuring Uncle Griff’s priceless pearls of Wisdom Y’all come back and be sure to click VICTORIOUSLY on any interesting links in the sidebar!










