Defect Rate

[igotemat]

So, I'm having a real problem understanding the defects part of the seller ratings.  We are EXTREMELY concerned with customer satisfaction... and if we notice any major flaws, missing parts, or damages to an item we have listed (prior to shipping), we cancel the order and issue an immediate and full refund (rather than disappoint a customer after they wait for a damaged item to arrive).  Again, we do this because we don't want a buyer to be disappointed with their purchase.  HOWEVER, eBay does not differentiate between OUT OF STOCK and DAMAGED.  So, when we cancel the order, we cannot specify - and the effort to make sure a buyer isn't disappointed with their purchase... ACTUALLY HURTS US by adding to our defect rate.  We currently have cancelled 12 items out of 1031 orders... and that brings our rate to 1.16 - below the Top Rated threshold of .5%.  How, exactly, is this policy contributing to our overall seller performance???  Our efforts to please our customers - is actually causing our ratings to fall below Top Rated.  This makes no sense.  Using eBay's theory... it seems we should just ship them damaged merchandise, sit on the customer's money for a  week, and THEN issue a refund!!!  See, now,  how that makes no sense?

[wooden_flower]

You are supposed to find the problem before an item sells. If 1% of your inventory is getting damaged between listing and selling, than is an issue you need to solve. That is double the top rated threshold of .5%, not below it.

Obviously the answer is not to ship a damaged item - that would be worse since you will spend shipping 2 ways plus have a high rate of not as described returns which would cost you an extra 5% in final value fees. Not to mention poor feedback.

I would try to narrow down the damage issue - is it a particular kind of product?  Items you store in a specific place?  Then suspend selling those items until you can inspect your inventory and identify damaged items than need to be removed from your items for sale.

[igotemat]

That doesn't explain why eBay handles it that way... that just explains what YOU think WE should do so it doesn't happen.  

[woodland_gnome]

And exactly how did the item become damaged or otherwise not as described?  It is your job as seller to make sure that the item is available as described to ship, before you set up the listing and keep it that way until you ship (and while it is in transit, which is still somewhat in your power by packing and selecting a carrier that is less likely to lose or damage it).  If you are having enough damage to your inventory to affect your seller metrics you need to look into your storage process (and if it is a matter of things not being inspected well enough when you receive it look into who is doing that).

[wooden_flower]

The why is simple - buyers are disappointed when an order is cancelled.

[igotemat]

We are liquidators, so sometimes things aren't exactly noticeable when we list it.  For example, we list a thermal cup... but it is missing the straw (which was unknown at listing).  Or a Nerf gun that is missing the bullets.  Etc.  

Again, not looking for recommendation on how to change our business model.  Looking for an explanation as to why that is part of eBays ratings.

[woodland_gnome]

Because it is a defective transaction whether it is damaged or missing or misdescribed or you just sold something you didn't have or are refusing to sell because you are not happy with  the final auction price.  eBay is not going to send someone over to investigate why you were unable or unwilling to fulfill your end of the contract of sale (how much more in fees would you be willing to pay to finance them doing that for every cancellation?); the problem was on your end so you get a defect.  eBay changed a few years ago from relying on feedback from buyers to these objective measures a few years back to be fair to sellers. (I think they used to have multiple choice to more precisely identify the problem on the seller's end, including damaged, but they all resulted in a defect so eBay corralled them all into one choice).

[igotemat]

That's a valid explanation, thank you.  But, if they're trying to aggregate data on defects (which is why it affects your rating).... then why not offer options to the seller to explain the reason????

[woodland_gnome]

Again, to the best of my memory, eBay did offer options when the defect system was first rolled out.  My guess is they got the data they needed then and saw no need to keep collecting it vs. simplifying the process to lump all defective (seller-centered) reasons into one  (there are two buyer-centered reasons since the seller is the one stating the reason and that lets eBay know what to look for in the messages between buyer and seller to see if the seller is lying to avoid a defect).