Seller Performance standards outrageous & greedy and ultimately costly to eBay

[historyteacher40]

I have been using eBay for more than 25 years, and until the last few years, have been reasonably satisfied.  A few years ago, I experienced a consequence of a very flawed policy and was suspended for one month, and during that month, discovered how easy it was to list things on Amazon.  I currently have more than 1,000 items on Amazon, and this wouldn't have been possible without the eBay suspension (will mention that later.)

I realized a few days ago that instead of paying 13%+ in fees after each sold item, I am now paying more than 18% in fees, and have been for several months.  If I had known, I wouldn't have listed anything going forward.  What is absolutely disturbing is why I am being disciplined.  I really believe CNBC, national newspapers, and other media outlets need to start sharing stories like this.

The reason for this punishment is because of eBay's seller performance standards.  My standards currently include: 100% positive feedbacks over the past year (199 positive feedbacks), and sadly, eBay doesn't count this.  My late shipment rate is 0.20 (one package out of 500 I shipped late- only because the customer asked me to wait!)  100% tracking uploaded!  0% cases closed without resolution.  And finally, the kills, I have a 96.7% success rate with shipping the package, and 3.24% cancellation rate.  Of this 3.24% cancellation rate, some of the customers asked me to cancel their orders after payment.   A few were because I realized damage to the item and didn't want to ship it, and a few were simply because I couldn't find the item. 

With 100% positive feedbacks, 499 out of 500 packages being shipped on time, 100% of all disputes being resolved, and a 96.7% non-cancellation rate, I am being forced to pay 6% extra with every auction I sell.  This is almost criminal in my opinion.  These statistics are the result of hard work and dedication, however, eBay is trying to get nearly 20% in fees from every auction I sell instead.  

I have done just under $30,000 in sales the past 90 days.  I never realized until recently that I was paying nearly 19% as a punishment for the numbers I just shared.  How does this hurt eBay in the end?  I currently have a very large sports card 1950's collection that I am selling (that is why my sales have been so great lately.)  I was actually about the list several more large ticket items, including a 1954 Bowman near set on eBay (would have started  today,) along with hundreds and hundreds of other sets, vintage PSA graded cards, and so much more (probably $50,000 or more,) along with a large coin collection that I am putting together.   As soon as I realized how much punishment I am receiving for my performance levels, I contacted eBay.  The customer service person kept reminding me of my poor sellers performance and wouldn't eliminate the extra 6% fee.  I immediately contacted a sports auction house (Memory Lane) and mailed several 1950's sets to them.  They will sell for at least $15,000 or more.  Instead of taking 13 or 14% of these sales, eBay forces me to pay 19%. I send the cards to Memory Lane and pay 0%, and eBay loses everything.  I have mountains and mountains of other sets and graded cards that I will now be sending to Memory lane over the next few months.  eBay's punishment to me is they will lose thousands of dollars in business.  

Several years ago, I had another experience where I believe eBay was 1000% wrong, and I moved almost everything to Amazon.  Today, I have more than 1,000 bus and truck parts on Amazon, roughly 12,000 more that I will be listing over the next year or two.  eBay's unrealistic strictness with sellers, and fees that keep going up (when their cost is almost nothing for us to use their platform,) is costing eBay.  If I were part of the eBay leadership, I would be greatly concerned about this direct. 

eBay really can do whatever it wants at this point.  However, at some point, it was catch up.  Look at how many people have left eBay for sports cards, for example.  I discovered the auction houses for sports cards, and some of that is directly connected to how much eBay charges.  

I could go on an on about my frustrations, but probably should stop for now.  I want to repeat that I have loved eBay for most of my years using it (I taught full time and did eBay to supplement my income for many years.)    However, the lack of support for sellers (so many more bad experiences I could share,) the greed with how much money they take from us and the extra 6% with great performance numbers, and other experiences have led me to move to eBay, Memory Lane, a local auction business that brings in top dollar for less commission, and elsewhere due to the horrible treatment of eBay. 

[mam98031]

@historyteacher40 

"The reason for this punishment is because of eBay's seller performance standards. "  Yes we all have to adhere to them which is why I always recommend that sellers review their Seller Dashboard at the very least once a week so they know if something is happening that can put them into the penalty fees.

" Of this 3.24% cancellation rate, some of the customers asked me to cancel their orders after payment.   A few were because I realized damage to the item and didn't want to ship it, and a few were simply because I couldn't find the item. "  Filing cancelations with the reason that the buyer requested it does NOT count against you in this stat.  The only one that does is the OOS reason.  That is the ones that hurt you.

"I am being forced to pay 6% extra with every auction I sell."  Yes that has been the penalty for a few years now.  A couple of years ago they raised it from 5% to 6%.

" This is almost criminal in my opinion."  Why is that.  Ebay has informed us of this policy, they have never hidden it from us.  And you would have known you were coming into a problem if you were regularly checking your Seller Dashboard.

"I really believe CNBC, national newspapers, and other media outlets need to start sharing stories like this."  What do you think they would find interesting in the policy?  Again the policy isn't a secret, anyone can see it.  You got in trouble because you weren't tracking your inventory adequately or storing it adequately and problem happened where you were out of stock or damaged in storage so you had to cancel the orders.  This disappoints buyers big time, when their orders are cancelled.

You need to work yourself out of this problem.  To do that you need more sales.  More transactions will dilute the numbers.  Watch your Dashboard closely so you can see when it starts to drop the percentage in the cancellation.  And do not do any more cancellations for OOS if you can help it.  You may want to verify you have the inventory you are selling actually in stock and in condition to be sold.

I get it that you are frustrated, but this is an avoidable problem, you just need to pay closer attention to the details and to your Dashboard.

I hope this all works out for you.

[katzrul15]

@historyteacher40 

Look at your metrics under on the Seller Hub overview landing page. 

How soon before some of that starta to role off? 

Understand the need to expand the Egg basket - we too sell on AZ - have since 2006. 

Good luck as you work thru/navigate your online selling journey.

Folks keep posting on here that e-Bay only sanctions the little sellers.  You are proof positive that is not true - everyone lives/dies by the same metrics "sword".

[gogoandgadget]

What do you recommend in improving metrics when sales have tanked this year for my small business? I had several out of stocks and late shipments (in part bc USPS did not scan in a timely manner during the holidays) back in Nov /Dec. 

The transactions I’ve had aren’t enough to make much of a dent and now I’ve been penalized by being limited to only 55 active items and/or less than $1K of sales a month. I’m kind of at a loss on how to fix an error from 10 months ago. Thanks!

[showmecurrency4u]

ebay should follow the same standards, when ebay have defects let the byer pay 5% less.  

[historyteacher40]

I agree- eggs are in many baskets now.  Thanks to unbelievable eBay policies a few years ago (30 day suspension that was totally uncalled for) I discovered that selling bus and truck parts on Amazon brought more money and much better sales!  I now have thousands of bus and truck parts on Amazon that would have exclusively been on eBay.  And- because of the 19% fees (including the 6% robbery fee for having nearly perfect performance standards,) I discovered auction houses for vintage sports cards at the perfect time.  They sell for more in auction houses, and the sell has no fees.  eBay policies that aren't realistic and very unfair cost eBay in the end, as I am making quite a bit more money on Amazon, Memory Lane Auctions, and more!  I would have never explored these options if it weren't for the punishments eBay distributes to sellers who aren't "perfect" in their eyes. 

[historyteacher40]

Thank you for your response.  You seem very Pro-Ebay for sure!  The standards that I have include 100% positive feedbacks, 499 out of 500 shipping on time with tracking information, zero conflicts that weren't resolved, and more than 97% non-cancelled orders shipped (including less than 1% the last month and less than 2% the last two months.)   A handful of the cancellations was my mistake, as buyers requested it, and I didn't click that the buyer requested it and instead said it was out of stock as I was using my phone and obviously didn't realize the consequences for selecting the wrong option.

My post was simply to state that:

1.  The performance policies are very harsh and flawed.  There is not grace at all, but 100% truth for the sellers.

2.  The punishments from these flawed policies hurt eBay more than the customer.  For example, during a one month suspension a few years ago, I discovered how easy it was to list items on Amazon.  I have (and had) thousands and thousands of new truck and bus parts that we going on eBay, and was in the process of listing thousands more.  The suspension forced me to look at other options.  On Amazon, products sell for 1.5 times as much, and their policies are equally supportive of both the buyers and sellers.  I have done extremely well on Amazon, and this wouldn't have been possible without a suspension that was terribly unfair as I truly did nothing wrong at all.

Another example details to what my post discussed in detail.  I am paying a 6% punishment fee for my performance ratings that are extremely strong by most measures.  I have $30,000 in sales the last 90 days, mostly from a large vintage baseball card collection I bought and am selling.  I still have at least $70,000 in sales left, if not more.  Most of that collection was going on eBay over the next few months.  When realizing that eBay was gouging me for 19% commission on my sales (including the 6% punishment fee,) I started exploring and discovered auctions houses such as Memory Lane Auctions, Heritage Auctions, and more.  I just sent a large box of vintage 1950's sets to Memory Lane- ONLY BECAUSE OF THE 6% PUNISHMENT FEE.  Memory Lane charges the seller 0%, and the buyer pays a premium after the auction ends.  Also, most sports cards sell for much more in the auction houses than on eBay.  Due to this eBay policy with unreasonably strict performance standards, eBay will be losing at up to $10,000 in fees because I am using another forum to sell my sports cards.   

If I am a part of the eBay leadership, I would seriously consider these numbers when creating policies.  
I 100% agree that there are sellers who are performing horribly!  However, my numbers are far from that.

[nocoolnamejane]

Looks to me that you have already found the solution to your issue.

[aeparts1]

I'm curious, what does Amazon charge in the way of seller fees?

It sounds like they are an outlet we need to check in to.

[bonjourami]

More than Ebay.

How much charge does Amazon take from sellers?

Sale-related fees range from 6% to 45% of each product's selling price, with the average seller paying about 15%. Account fees range from $0 to $39.99 per month. You'll also need to fulfill and ship your orders, which varies widely in cost, depending on your products and fulfillment method.

[donsdetour]

Horrible treatment:

back in the day (history of eBay)  there was no option, they just kicked you off of eBay when your seller metrics fell.....

Now days when your metrics fall you pay more and get a chance to straighten things out:

Oh and of course this has caused you to diversify: I see such as a good thing.

Never know when a site just might fail.. all eggs in one basket comes to mind.

Good luck on them other sites.

[historyteacher40]

It depends on the items, but in the ballpark of 17%.  However, there are three big advantages:

1. They treat the seller with respect and don't have unrealistic and flawed policies that only benefit the buyer.

2.  Things typically sell for more on Amazon.

3.  When listing, often your item is already on Amazon, and you aren't required to add pictures or descriptions.  You simply select your condition and price and submit.  I goes much faster than eBay.

[mam98031]

Just in case anyone had questions about this statement.

"Look at your metrics under on the Seller Hub overview landing page. "

Their problem is not the Service Metrics which is found on the Seller Hub under the Performance Tab and then "Service metric".  

The OP's issue will be shown on their Seller Dashboard which is also on the Seller Hub.  It has it's own box and the box is called Seller Level.

[mam98031]

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@gogoandgadget wrote:

What do you recommend in improving metrics when sales have tanked this year for my small business? I had several out of stocks and late shipments (in part bc USPS did not scan in a timely manner during the holidays) back in Nov /Dec. 

The transactions I’ve had aren’t enough to make much of a dent and now I’ve been penalized by being limited to only 55 active items and/or less than $1K of sales a month. I’m kind of at a loss on how to fix an error from 10 months ago. Thanks!

---

There are only two things a seller can do when this happens.  Do what they can to increase transactions so that the numbers get diluted or wait until the offending transactions age off.

USPS not scanning items will not ever create an OOS situation.  As to the late shipments, you only get a defect for those if they also arrived late to the buyer.  However I'd suggest that if you see this happening again during the upcoming Holiday season, talk with your carrier.  Express to them how important it is that they scan your packages.  It all starts with them.  If that doesn't work, contact your local Post Office and talk with the Postmaster [not just any clerk].  I had this problem once.  Talking with the carrier didn't do anything for me, so I took it to the Postmaster for my local PO.  They fixed it and I've never had the problem since and it has been years.

You can't do anything about fixing those old items and it is unlikely that they are causing you your current issue of sales restrictions, likely there is something else going on.  Back when the restriction started, Ebay would have emailed you.  What did the email say?

[mam98031]

The ability to explain Ebay's policies doesn't make me ANYTHING except someone that can explain Ebay's policy.  Some sellers do actually understand the rules in which Ebay has.  Doesn't at all mean we agree with them, but in order to do a better job I find it is important to understand the rules.  It is how I've approached every job I've ever had in my life.  Ebay is no different.

Ebay has no standard that requires a seller to have 100% FB rating.

When you file a cancellation using the reason that the buyer requested it, you do not get a defect for that.  These transactions are not your issue.  It was the cancellations you filed because you were OOS for whatever reason you were OOS.

Not knowing the rules is not a defense.  Knowing and understanding the rules are part of our job.  You have discovered how important this is now.  Ebay's site, Ebay's rules and we are all responsible for following them whether we agree with them or not.

1.  Well that is not exactly true.  Most sellers don't fall into the penalty fees.  Most sellers will go their entire career here on Ebay without ever falling into the penalty fees.  

2.  I would personally disagree with that.  While it did cause you to look elsewhere to sell your stuff, not everyone reacts that way.  With that said I understand it and I respect your decision to do that.  This policy is in place to help protect buyers.  Cancelling transactions because you are OOS disappoints a buyer and can cause them to take their business elsewhere.  These cancellations are and can be harmful to a buyer.  And that is why the rule exists.

I understand that you sell on other sites.  You've mentioned that several times.  Many sellers sell on multiple channels,  I have for years.  Not because I got in any trouble with Ebay but because it was a good business decision for me and my little business.  Lots of sellers sell on multiple sites.

"On Amazon, products sell for 1.5 times as much, and their policies are equally supportive of both the buyers and sellers. "  While I don't sell the same kind of stuff you do, I do not find this at all true about Amazon.  I have plenty of horror stories about that site.  But not the right forum for that.