posted on April 18, 2008 09:27:47 AM new
Recently I took a one-month sabbatical from Vendio and embarked on a test. I wanted to find out if:
1. Appealing directly to bidders by way of an explanatory graphic in auctions listings would boost DSRs:
2. Spending more time on the business by not reading/posting in the EO would have an appreciable effect on profit.
3. Reading and responding to eBay email would improve sales and satisfaction ratings.
The results are in.
DSRs
====
DSRs started at 4.8, 4.6, 4.6 and 4.3. After 30 days they are totally unchanged.
However, my average monthly negative feedback doubled. Let me explain: In any month, I will garner from 0-3 negative feedbacks. These past 30 days it zoomed to 7. (One has been removed by mutual withdrawal.) This was completely unexpected. According to the precepts of the feedback cloud cuckooland that eBay lives in, this most definitely should not have happened.
I delivered top-notch customer service during the past 30 days, answering even the stupidest, most pointless questions in email and going so far as to post my business phone number in my auctions so people could call with any questions or concerns. (And they did, oh how they did.) I accepted total-BS buyer's remorse returns that I would have previously refused. 60% of orders were shipped the same day, 25% second day, 10% third day and the remaining 5% up to seven days after payment.
Conclusion: I believe the DSR graphic is largely to blame for the increase in negs by conveying the message that I care deeply what buyers think. The graphic will go away soon.
The eBay Outlook: Bad for business?
======================================
Here's the Terapeak report for the 30 days previous to the start of the Experiment:
And here's the 30 days of the Experiment:
Sellthrough dropped slightly, true, but average price realized per item went up. More important, number of sales increased dramatically from 580 sales/899 listings to 796 sales/1323 listings.
Conclusion: I hate to say it, but it's not looking good for you guys.
eBay email
==========
I have always shied away from compulsively answering every email I get because I know that in many cases it is counterproductive. Call it tough love; how else can you get bidders to actually read auction descriptions?
Not to mention that there are people who are clearly spoiling for an email battle.
The last 30 days have been pretty much as you might expect, a veritable thunderstorm of dumb questions and whiny complaints. It's enough to make you nutty if you read it all.
Last and most important, none of the dumb-question emailers converted into buyers.
Conclusion: Answering email does not improve sales or satisfaction ratings. Mental health-wise, I was better off before when I was ignoring most email. I will remove the phone number from the auction listings but put it on the AboutMe page in the vain hope that customers who have genuine problems needing my attention will find it there. And I will take extra care so that fewer problems are created.
fLufF
-- Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
posted on April 18, 2008 09:46:24 AM new
Thanks Fluff
I really think no matter what the sellers does some will complain. I know there are some sorry buttocks selling on eBay but most really try to deal fairly.
I actually know someone that started shipping free .. it has not really helped. She said she was going to start back her listings with S/H fees.
I do not answer dumb questions anymore, and I always cut and paste if the answer is in the auction. I no longer answer- Will this fit me?
Just how would I know if it will fit them?????
If they do not know their size, how would I?
Most customers (99%)are very very nice and the others nothing we can do will change them.
posted on April 18, 2008 09:59:45 AM new
I do just a fraction of the listings you post each month, Fluffy, varying from 30 to perhaps 150. I guess I've just been lucky to have great customers--but I know that can and probably will change soon. ~Adele
_____________________
posted on April 18, 2008 10:19:37 AM new
Very interesting. I have an idea that it takes a LOT of 5 star ratings to change the rating upwards, and very little downgrades to change it downwards.
posted on April 18, 2008 11:53:08 AM new
"Sold out"?
Sold out to whom? And how much are they offering?
Over the last month I read How to Get Rich by Felix Dennis. Dennis reminds us that once you have a successful business, you should heed any and all offers to buy it. The idea after all is to make money, and you'll (hopefully) make far more money selling it than you would running it.
fLufF
-- Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
posted on April 18, 2008 12:29:38 PM new
"Letting customers know you are making money from overcharging shipping."
Did you report this bidder? I know it's not on your feedback page but based on their wording and recent registration I think you could argue interference or bidding just for the sake of leaving a negative.
posted on April 18, 2008 12:43:10 PM new
Oh, that must be "lint" you're referring to. Why bother? eBay won't do anything for me. It's a waste of time and psychic energy.
I've reported one bidder, the one who said:
HAS it been shipped. Disturbing news from EBAY that you are not member but sell
I thought they would be interested in this because the cretin is claiming eBay told her I'm not a member but I sell there anyway. Boy, I'm some skilled hacker, aren't I?
eBay, naturally, refused to remove the feedback.
However, Madame Cretin has clearly defamed my business. I have spent quite a lot of time researching defamation. It appears I can probably get a default judgment against her (she's in GA, I'm in CA, she won't show up in court) if I want to invest $2,000 or $3,000. I'm considering it. The publicity might be worth it.
fLufF
--
Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
[ edited by fluffythewondercat on Apr 18, 2008 01:08 PM ]
posted on April 18, 2008 12:57:19 PM new
That's funny. I have fantasies about suing the twit that left me a neutral in which she claimed that I described something as "excellent condition" when in fact I described it as "very good."
She lives near family that I visit several times a year so it would be feasible to take her to small claims. She's also an attorney who should really know better. I think I would derive great pleasure from suing an attorney who intentionally misquoted me and damaged my feedback.
"eBay, naturally, refused to remove the feedback."
I think they are required to turn you down the first time you complain. I would have argued that "the feedback makes reference to an eBay, PayPal or law enforcement organization investigation." A bit of a stretch but you never know.
posted on April 18, 2008 01:10:06 PM new
Good to hear from you. I've been taking a long vacation from email. Now I try to at least glance at it, if not respond to it. I know that customers can leave multiple positives and multiple negatives for a seller - up to one per week. Are any competitors buying from you? Despite eBay's claims, I can't see the DSR's affecting Best Match as much as eBay's algorithm on what it considers reasonable shipping.
posted on April 18, 2008 01:27:09 PM newAre any competitors buying from you?
I wouldn't know it if they were. I suppose you mean the uptick in negs may be caused by vile, conniving jewelry sellers.
Nah, I can't believe that. Besides, if they had a lick of sense, they'd realize that the negs are never going to lose me my core business, which is my cadre of repeat buyers. Hey, these guys and gals actually *like* reading my scathing responses to the negs. It's entertainment. And I'm happy to oblige.
fLufF
-- Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
posted on April 18, 2008 02:38:32 PM new
Fluff,
One cannot have the cake and eat it too.
If you are making money on shipping then you should not expect your bidders to leave you a fat '5' on shipping charge so you can get your powerseller discount!
By starting your item at 99 cents,you attract all the bottom feeders,bottom feeders expect you to charge bottom feeding shipping fee ,say 99 cents,so they can get a twosome bottom feeding deal!
SUCH IS LIFE ON THE BOTTOM FEEDING WORLD OF EBAY!
BTW,is that a toll free number?
If not,why not??
*
Lets all stop whining !
*
[ edited by hwahwa on Apr 18, 2008 02:39 PM ]
[ edited by hwahwa on Apr 18, 2008 02:39 PM ]
posted on April 18, 2008 02:44:56 PM new
I ask for 5 stars in my response after payment when I email them to thank them for their prompt payment and tell them when the item will be shipped. I have seen a slight rise in my *stars*.
I think the hardest nut / star to crack is shipping costs. What is reasonable vs very reasonable to some buyers?? They just hate to part with those dollars when it comes to shipping. They don't care what materials you use, the time it takes, the fees charged by Feebay, etc. It's like taxes, we use the services, but we don't like paying for them.
posted on April 18, 2008 02:54:06 PM new
Why spend so much time trying to get a 5 on shipping?
I charge enough to offset my Ebay and Paypal fees and I am happy,I get 4.6 and I dont care if I ever get a '5'.
*
Lets all stop whining !
posted on April 18, 2008 03:29:21 PM newwas it "do you combine shipping?"
How'd you guess?
In my opinion, the biggest mistake eBay ever made and continues to make is to not hire anyone who has extensive mail order experience. In retrospect this looks like a huge blunder. Do I think John Donohoe, late of Bain Capital (private equity firm), really comprehend mail order? Of course not.
Listen to what Roger Horchow had to say 28 years ago. It's still true today.
"One thing that surprises me is how often a customer will rebel at the shipping charge but not the merchandise price. Beside each item in the catalogue is a figure in parentheses which represents the packing and shipping charge. That figure represents an average on postage or United Parcel charges plus packing materials and preparation. We certainly don't try to do anything but break even on it, yet every day or so we get an indignant letter pointing out, `I paid $2.25 postage but when the package arrived it only had $1.95 on it. I want my 30 cents.'
"We try to explain that the parenthetical figure isn't the literal cost of postage alone, and that, for some items, an unusual amount of time and materials is needed for safe delivery, so the cost of packing alone can be more than our shipping charge, but with a few customers this discrepancy seems to count more than a mistake in price."
fLufF
--
Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
[ edited by fluffythewondercat on Apr 18, 2008 03:30 PM ]
posted on April 18, 2008 03:47:43 PM new
Some mail order outfit would ask the customer to take out insurance,else they are not responsible if anything goes wrong.
*
Lets all stop whining !
posted on April 18, 2008 08:13:50 PM new
I got an ASQ today from someone puzzled at how I could date a postcard without a postmark or copyright date. I answered flippantly, telling them it was from 20+ years of experience. They persisted in asking what clues I used. I looked at their feedback, they do buy postcards with 300+ feedback under this ID. I don't mind educating buyers but don't want to spend the time on sellers (except VDers). I answered with four major clues. I doubt if it will pay off immediately, but maybe in the future.
[ edited by pixiamom on Apr 18, 2008 08:15 PM ]
posted on April 19, 2008 05:45:03 AM new
Hi Fluffy,
You did a very interesting test.
After reading all your info I got to thinking that maybe it might be good to try another test for a month.
How about if you lower your shipping to 5.00 You might get a little more for each item since they are saving a 1.00 on shipping.
I sell vintage Sterling jewelry and when I charged 6.00 for shipping I had a low selling rate but then I lowered my shipping to 4.75 and some to 5.00 and my selling rate was better. The way things are now I don't know what is the best way to go but if shipping is lower that might help plus maybe people might bid higher.
Actually I'm pretty happy with the sales volume right now. More sales means more shipping. I can't just call up Temps R Us and have them send over a warm body to help out, but even if I could that would increase my costs so much as to cancel out any gain.
The main reason not to do what you suggest, though, is eBay fees. Recall that Final Value Fees just went up.
According to Terapeak, my average sale currently is $10.32 plus $6 to ship. Only the $10.32 is subject to FVFs.
If I lowered the shipping one dollar and had my average sale increase to $11.32, the FVF increases by 9 cents. It goes from 90 cents to 99 cents.
I think eBay gets plenty of money from me already. Plus, California buyers get shafted because now they're paying more sales tax. (California sales tax is only computed on the base amount, not the total.)
So as callous as it sounds, I don't really care if people object to $6. The repeat buyers have happily accepted it, even the sweet old lady in Arizona who objected to the last shipping increase. She buys more now than she ever did. When I got married, she asked me to send her some of my wedding pictures.
Over time, some (not all) people discover that for what they like to buy on eBay, I offer a lot of value.
fLufF
-- Now updated daily. Jewelry news, views and pretty baubles for those with low impulse control.
posted on April 19, 2008 06:56:00 AM new
Hi Fluffy
I do understand everything your saying but I was thinking of your star rating. People might give a better rating if shipping was lower but I'm sure you know what's best for your business.
You do offer great items, I have bought many pieces from you in the past and I was very pleased with the quality and service.
My thoughts now were maybe people give a lower star rating even though they give a positive fb rating because no one knows how the buyer is rating our stars, it's a secret..lol
hwahwa, as a buyer if I agreed to buy an item and I know the shipping cost before I bid that means I am ok with paying what is asked so the buyer should give a 5* rating even on shipping. If they don't like the shipping cost then they should not bid.
posted on April 19, 2008 06:59:01 AM newhwahwa, as a buyer if I agreed to buy an item and I know the shipping cost before I bid that means I am ok with paying what is asked so the buyer should give a 5* rating even on shipping. If they don't like the shipping cost then they should not bid.
posted on April 19, 2008 07:35:12 AM new
Just because some one agrees to your shipping fee does not obligate that person to give you a '5' in shipping!
Where did you see in writing that they must give you a '5'?
This discussion has been going on for so long,why arent these bidders giving us a good shipping grade?
Shipping does not add value to the item ,nor does it yield any pleasure like an instant high when they see how well you packed it.
It has more to do with how pleased they are with the item and how much they paid for it and what is happening in their personal life .
We can beat this issue to death asking why ?why? why? and spend countless hours discussing and surveying,why not just spend time finding good merchandise to sell , take better photos and describing the item?
I know some of you are powersellers and would like the discount,but the stark fact is that your bidders are not giving you a rating you think you deserve,there is only that much you can do to improve 'shipping'.
Unless there is a Freudian explanation that asking bidder to give you a better grade is like asking mom and dad to give you a pat on job well done or looking for love in all the wrong places.
posted on April 19, 2008 08:01:57 AM new
hwahwa,
You are right as well. This subject has been beat to death and there will always be someone who is unhappy. I do feel that if a person does not agree with the shipping charges, then they shouldn't bid and that is what I was agreeing with. Ebay controls nearly all aspects of our business and they will only increase their hold on that. Payments will probably come next.
posted on April 19, 2008 11:38:53 AM new
The whole star system is rigged to give you 4's and for buyers to think 4's are good enough. As Wingo pointed out on his blog, ebay approval rating is far below what they are demanding from their sellers.
I try to ignore the stars and stay away from the dashboard.
Beth
posted on April 19, 2008 12:04:58 PM new
Here is this UK dealer whom I think is one of the most professional sellers on Ebay in every aspect-quality of the merchandise,prompt and fair shipping and courteous service,he gets 4.8 shipping.
He is too busy counting his money to strive for 5.0
------------------------------------------
Member Details
renatamisic ( 656)
Member since 26-Jun-00 in United Kingdom
Lifetime Summary: Positives:656Negatives:0|Positive Feedback:100%
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Negative 0 0 0
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posted on April 19, 2008 01:25:04 PM new
Fluff
Thanks for taking the time to do this experiment and for sharing it.
It amazes me how much everybody gets worked up about this stuff in a negative way when we should be using it as a tool.
Automotive retail has been using a DSR type system for years and what I have learned is this.
1.The whole idea behind 5 stars is to improve customer satisfaction. The factory (Honda,GM, Ford etc.) in our case eBay, knows that a happy customer is more likely to become a repeat customer.
2.Weed out bad dealer-sellers. Again, a unhappy customer is not likely to be a repeat buyer. Funny side note some of the largest volume dealers in the country have the lowest customer satisfaction ratings hmmmmm.
What the DSR ratings tell me is where I can improve my business. Example My Shipping Time rating was 4.7 two weeks ago so I tweaked my shipping days from twice a week to three times a week. I checked my dashboard today and its 4.9. Now if I don't want to ship 3 times a week then I will have to settle for the 4.7.
I don't expect a 5 star rating a 4.8-4.9 is my goal.
If my buyers are happy I stand a far better chance of selling them another ad and another ad and another one.
