Feedback-pocalypse: eBay's new Detailed Seller Ratings

Everybody panic!

August 20th, 2014 has come and eBay's new Detailed Seller Ratings are in effect. What this means, and I'm still not entirely clear about it myself, is that all that the right to sell on eBay, and the benefits entitled wherein, can now be revoked or otherwise altered based on those five star ratings, which are now combined with regular old feedback to create the new "Transaction Defect Rate".

People seem really shocked and appalled in particular by the new requirement that eBay doesn't consider your packages shipped until the shipping service scans them in. So, basically, the seller is on the hook if the post office drops the ball.

A sampling of the 'blogosphere' shows reactions to this new evaluation / consequences system varying from rage-filled tirade-comments against eBay threatening to never use the service again (nothing new there) to utter relief that the sun did in fact rise this morning and we are still somehow free to sell junk online.

So how is your boy here at Part Time Picker reacting to all this? By not worrying about a damn thing. Here's why:

• I always describe my items accurately and try to take multiple good photos. I do this because it helps get me more bids, more sales, and helps my items show up more often in searches within eBay's Cassini Search system
• I don't gouge on the shipping charges. If I'm not doing Free Shipping, I keep those charges at or below what the actual costs will be. Nothing turns a buyer off faster than insane shipping charges. And in that very rare instance when I do accidentally overestimate and overcharge on shipping, I refund the overage to the buyer right away, even if they don't ask for it.
• I usually ship the next day after the auction ends (or the item is bought). Why wait?
• I also always get tracking on my shipments. Always.
• I respond to all inquiries, questions, and other contact the same day, usually right away if I can. I don't like having some unresolved issue hanging over my head. And with my smart phone, it is super easy to respond from wherever I am. If you don't have a smartphone, you should just stop reading this and go back to gathering nuts and berries to store in your cave because the winter is coming.
• I generally give great service. It's called being good at business and everybody should be doing it. It's how you get repeat customers. It's how you succeed. 

If you are already doing a good job at communication, item description, and shipping (which you should have been doing all along), you don't need to do a thing in regards to eBay's Transaction Defect Rate. Just be cool and keep picking the deals. Sure you'll occasionally get screwed by the post office or some idiot buyer who just gives you an unjustified bad rating, but, take a deep breath, everything will be ok. I promise.

There is a pretty good and even tempered blog about all the DSR controversy over at FlippingaDollar.com that you might enjoy as well.

Unfulfilling... Is FBA for you?

Strictly business.

It seems like almost every blog or book I've read that offers advice on how to make money selling items on Amazon cannot stop saying great things about Amazon's FBA (Fulfilled By Amazon) service. They freaking love it and they are sure that you will too.

If somehow you haven't already been innundated with emails promoting FBA, let me give you a quick overview:
As a regular Amazon merchant, you basically list your products on Amazon's site and Amazon handles the transaction for you (for a fee, of course). You then pack and ship the product to the buyer, handle any returns or problems, and Amazon pays you out (minus their fee, of course) every two weeks. You also get a predetermined amount for shipping costs that the buyer pays. Basically, Amazon's Marketplace acts as the forum for you to display your products (for a fee). All clever comments in parenthesis aside, I personally think that their fees are reasonable considering they provide my items access to millions of potential customers that I never would have had otherwise.

But with FBA, you pay to ship your products to an Amazon fulfillment center, where they then handle the storage, packing, and shipping of the items to the customer. The idea is that you no longer have to deal with customers or shipping hassles. Another promoted bonus is that your sales are expected to rise both by your association with Amazon's brand, as well as the fact that your items now qualify for the free shipping offered to Amazon Prime customers and all that.
So basically, with FBA, all you do is Find Product, Send to Amazon, Get Paid, and Repeat... What could possibly go wrong?

Apparently, plenty. In fact, there is an entire blog devoted to the how FBA will destroy your business.

The main liabilities with FBA are also presented as its main assets... you no longer are dealing with your own inventory and shipping. While this is could be great in terms of your storage, organization, and time constraints, this also takes a lot of control out of your hands.

• What happens if a seller has a question about the condition of a specific item? Once your inventory is in Amazon's warehouses, you cannot actually look at them again.
• What happens if Amazon screws up and order? Here is the biggest problem. If Amazon damages an item or mispacks an order or otherwise screws up, you are still on the hook. Your merchant account will be the one getting the bad feedback. You will be the one paying for any refunds. Amazon controls your products and your service, but the customers will be contacting you about problems. Even though  Amazon claims that they will rectify any problems like this, there are reports to the contrary. 
• Do I still collect the shipping costs that customers are charged? Nope. If you are a merchant who enjoys the extra change leftover from the difference between what the customers are paying for a book (usually $3.99) and the actual costs of shipping (averages about $3.09), then you are out that money with FBA.
• What at are hidden costs? And now things get hazy. The many proponents of FBA rarely discuss fees. Amazon's information pages about FBA do contain fee information, but it is pretty much buried in promotional rhetoric and positive testimonials. Apparently there are other passive fees (such as restocking, oversized items, and variable storage fees) that aren't very clearly explained at all. Clearly, a seller needs to be very aware of their inventory, its weight, its "shelf space", and the average turnaround time in order to get a clear picture of the risks of FBA fees.

My thoughts? I'm somewhere in the middle. While I'm very suspicious about the near-constant sales pitches and unquestioning endorsements from other Reselling Blogs telling me how great FBA is, I'm also not convinced that FBA is just a scam to increase your fees and ruin your reputation. Clearly, Amazon benefits from FBA (otherwise they wouldn't promote it so much).
The question isn't whether FBA is good or bad; The question is whether the FBA system works for you.

For me, it does not. While FBA might slightly increase my sales, the likely increase in fees would not make it worthwhile. My Part Time Picking operation is a pretty small one. My storage and shipping situations are pretty streamlined, and my inventory is manageable. Plus, I like being in control. I get very stressed and frustrated when I'm not able to directly handle problems with customers.

So when would FBA be the right choice? My feeling on this is that you should seriously consider switching to FBA when you are seriously considering hiring someone to help you with your Picking business. If your operation is large enough that you are renting storage space and hiring someone to help with the packing of your orders, you should give FBA some consideration. It is likely that having Amazon act as your storage and fulfillment center actually is more economical (and simpler) than expanding your business the old fashioned way. But if you, like me, are a pretty smooth one-person operation with no needs for extensive storage or shipping help, Fulfilled By Amazon likely isn't for you.

So what do you think? Have you switched to FBA? Get in on the conversation by leaving a comment.

Dude, Where's My Feedback?

Holy Bible in "Like New" condition with only slight storage wear.

Previously on Part Time Picker, I regaled you with a terrifying tale of my recent run-in with neutral feedback on my Amazon merchant account. After much denial and resentment, I finally arrived at the conclusion that the source of my dissatisfaction wasn't that somebody had left me less-than-positive feedback (although I admit to no wrongdoing and never will). The problem lies in the fact that very few customers leave feedback at all on Amazon.

I estimated that maybe 1 out of 9 customers leaves feedback. I've been checking the forums and I see that while my ratio seems lower than normal, many are observing a downward trend in feedback left. If one negative or neutral feedback gets in the mix, it can really create an appearance of an unrealistic percentage of unhappy customers. I'll say it again, I'm getting screwed by the system!

Why is this? Why do buyers on eBay leave feedback more often than Amazon? I think it is because eBay has always been a business based on independent merchants, while Amazon introduced outside merchants into its system well after establishing itself as a online retailer. When something is bought on eBay, it is well understood that it is not eBay itself that is selling the item. Perhaps many shoppers on the Amazon Marketplace don't understand that they are not actually buying their item from Amazon, but rather through Amazon. More thoughts here.

eBay has gone to great, even annoying, lengths to remind buyers to leave feedback. While Amazon constantly reminds us sellers about the importance of good feedback, but then it doesn't seem to remind the buyers quite so adamantly.

So what can we merchants do? We can send the buyers an email, through Amazon, to request feedback. I've done this a few times when I've felt like I was being especially ignored and deserving of some publicly proclaimed positive reenforcement. But check out some of the responses in this Amazon forum thread about feedback...
Some suggest that an email requesting feedback is enough to prompt an otherwise dormant buyer into leaving negative feedback. Careful when you ask for feedback... you may get it.

One thing is certain, if you are going to request feedback, make sure to explicitly state that the buyer is under no obligation. Never offer any kind of discount or refund in exchange for positive feedback (or the removal of bad feedback). Keep it quick, keep it friendly, and then leave them alone.

Perhaps an even better email to send is just a basic follow-up on the order. You're just checking in with the buyer to make sure everything is all right. And, oh, by the way, here is a link where you can leave me positive feedback.
You can do this in an even less intrusive way by including a note to this effect in the package. I find this very ineffective, because unless someone is opening their package right next to a computer logged into Amazon, rarely is the reminder transferred from the paper to the browser. There is a big difference between a clickable (or copy/paste-able) link and someone having to type it in manually.

Honestly, after all this writing and thinking about it, my best advise is to just let it go. Do your best to give the best customer service you can. Describe your products accurately and be honest. When things inevitably go awry and it isn't your fault, just chalk it up to the Part Time Picking game and move on. It's good to apologize for any mistakes or oversights you may have made (even if you don't think you are to blame) and communicate with your customers, but sometimes life isn't fair, and there just isn't much you can do.

You'll feel better once the next positive feedback comes in.
I know I did.

Arrgh... Neutral Feedback!

Be more constructive with your feedback.

The other morning I awoke to a shocking discovery... somebody had left neutral feedback on my Amazon merchant account. They thought that the book they had received wasn't in the described condition. While I might beg to differ, it really doesn't matter what I think, the damage is done.

I wasn't contacted before this feedback was left, and other than sending an apology, there is not much I can do. I would have gladly provided a partial (or perhaps even full) refund to avoid bad feedback, but at this point that would be considered a bribe and is explicitly forbidden. You do not want to risk upsetting the Amazon gods by attempting trade money or product for feedback.

When I saw that grey number 3 (instead of a beautiful green number 5) in my feedback score I felt angry, betrayed, and hurt. These emotions are all completely unjustifiable and I soon got over them, only to be replaced by feelings of embarrassment and frustration. Embarrassment because I likely overestimated the condition of the book I sold. That one is on me. Frustration because the Amazon feedback system is very important to merchants like me, but rarely utilized by Amazon customers. I'm getting screwed by the system.

Unlike eBay, Amazon hasn't built a culture of feedback for independent merchants. Ask anybody giving advice on how to make more money on your items, and they'll tell you to "have a great reputation." The feedback (and star rating system) is basically your only means of gaining a reputation. The problem with this system arises when customers aren't encouraged, and then don't know how, to leave feedback.

I estimate that, for me, only about 1 in 9 successful transactions results in feedback. Maybe less. So even though I'm selling 30-40 books on Amazon every month (a small amount in comparison to others), I'm still only getting 4 - 5 feedback ratings for those sales. It has taken me several years to get over 100 feedbacks (with my "feedback percentages" continually changing because those are only based on the feedbacks of the previous 12 months).
Somebody looks at my feedback and thinks I've only complete about 100 transactions, and I want to shout that I've got nearly a thousand happy customers under my belt. Unfortunately most are happy but silent.

Things have the potential to get ugly. Just as an unhappy customer in the tangible shopping world is more likely to tell his or her friends about a bad experience than a happy customer would of a good experience, an unhappy customer is a lot more likely to take the initiative to navigate the feedback system to leave negative, or neutral, feedback. And let's face it, anything but positive feedback is considered negative.

Do the math and cringe. I could complete 99 successful transactions, but I'd likely only see 10 customers leaving feedback. Then, if one order goes awry, I get a negative feedback (which I probably deserved). While I'm posting a solid 99% success rate in the real world, my feedback score has me around 90%. It looks like I'm screwing up one in ten of my orders!

The problem isn't unhappy customers leaving feedback, the problem is happy customers not leaving feedback.

So what can we do about this?
Stay tuned, because my next post offers some strategies towards getting a little more love in the feedback area. I'll also probably complain about the system some more.