eBay works to improve user satisfaction

WASHINGTON eBay today announced a number of initiatives aimed at keeping the auction site a popular destination for online shoppers.

The company said that it is lowering listing fees, raising minimum selling standards, and offering its best sellers incentives and discounts for the first time in its history. These changes will be made available across eBay's global marketplaces.

Starting Feb. 20 in the United States, eBay is reducing its fees to list items by 25% to 50%. In order to balance this change, the company said it is raising the fees it charges when an item is sold. According to eBay, sellers prefer this structure, as it lowers their risk if an item doesn’t sell. The company is also helping sellers by eliminating fees in the United States for its Gallery option.

Aside from making selling easier, eBay said it wants to ensure the best selling behavior by making its minimum standards more stringent for anyone who sells on the site, primarily to discourage behavior that causes buyer dissatisfaction, such as charging excessive shipping fees or not describing items accurately. The company added that it will begin decreasing search exposure for the listings of sellers who have high rates of customer dissatisfaction. Also, the company will begin requiring a safe payment option, such as PayPal or a major credit card, for sellers who have lower rates of customer satisfaction or who sell in categories that have a high number of buyer complaints.

While the company is punishing bad sellers, the eBay said it is also rewarding the good. The company is setting the bar higher for sellers who aspire to its PowerSeller program. Qualified PowerSellers will receive valuable fee discounts and better payment protection from PayPal. The company is also increasing search exposure for the listings of sellers with the best buyer satisfaction ratings.

“It is our intention to reward great sellers,” John Donahoe, president and ceo-elect of eBay said in his keynote address at an eBay forum. “Sellers that describe items accurately, ship on time, and ship at a fair price will enjoy preferential pricing and discounts on eBay. We think this will significantly improve the buyer experience overall.”