IMA Voices

Too MANY Payment Options?

Cyn — Wed, 30 Jul 2008 16:02:13 +0000

With the launch of Checkout by Amazon I have to ask myself - is there such a thing as too many payment options? When a buyer comes to my site, what are they looking for as far as payment options? Currently I offer Paypal, Google Checkout and a merchant account. 50% of my shoppers choose the merchant account, 25% Paypal and 25% Google Checkout.

Would I not be shooting myself in the foot by adding another payment option? Considering each payment processor offers reduced fees based on volume, by having too many options, and spreading that volume among 3 processors, I am paying higher processing costs.

When I only offered Paypal, I had a lot of abandoned shopping carts and even a few potential customers email me that they canceled their order because they couldn’t use their credit card directly. So I’ve added a merchant account and have had no more abandoned carts. I may even experiment with deleting Paypal and Google Checkout for a month. See if I get any requests for them, or if my abandoned carts return. If I were to process all payments through my merchant account, I could save quite a bit of money on processing fees with the reduced percentages.

So for me, Amazon Checkout is a non-event. Too many hands in the pie.

Cyn

What Is Your Business Goal For 2008?

Cyn — Wed, 04 Jun 2008 13:22:08 +0000

Like individuals who make New Year’s resolutions, most business owners take time to set new goals and/or revise old goals at the beginning of each year. As more and more consumers and sellers become comfortable with ecommerce, merchants are branching out and adopting a multichannel selling approach, whether branching out to sell on Amazon (or another site or sites) in addition to eBay or whether opening a brick and mortar or starting up their own website.

One of IMA’s most recent polls asked sellers what their business goals were for 2008. The poll choices were:

Expand into other online selling venues

Expand current product line/number of listings

Add new products to business

Open up or expand brick and mortar retail store

As we had expected, the majority of respondents said they planned to expand into other online selling venues. In fact, 67/112 (59.8%) said this was true. From an informal survey of the IMA and other message boards, it appears that Amazon is fast becoming the most popular online venue for sellers looking to branch out. It will be interesting to see how Amazon and sellers deal with the influx of sellers to Amazon. Will Amazon experience some of the growing pains eBay has? Will Amazon be able to continue and sustain its growth? Will sellers remain enchanted with Amazon or will they become disillusioned if Amazon decides to raise fees or implement new policies like eBay has?

The second most popular goal for 2008 (21/112 or 18.8%) according to our respondents was expand current product line/number of listings. It is not clear whether this means these respondents are expanding their current product line/number of listings on eBay or whether they are adopting a multichannel approach and branching out to Amazon and/or their own website. So many sellers focus on expanding their current product line/number of listings, but doing so often presents another set of business challenges such as how to keep growing your business yet maintaining and improving your profit margins, how to handle the increased listing/shipping volume, etc.

Adding new products to business (19/112 or 17%) was the third most popular business goal of our respondents. While adding new products may offer another potential income source, it may also mean having to find and deal with new suppliers, having to research and evaluate profit margins for the new products, possibly dealing with some new buyer challenges related to the products, etc. Again, in the haste to grow, sellers must find a balance between growth and keeping their business running efficiently.

Lastly, 4.5% (5/112) of respondents planned to open up or expand their brick and mortar retail store. Given the rumblings about the economy being in trouble and people and corporations tightening their finances, this is an interesting response. It would also help to know where these sellers live as often, the cost of acquiring and operating a brick and mortar retail store is significantly cheaper in some areas than it is in others.

What do these poll results mean in the grand scheme of things? As has been the trend for the past few years, it appears that sellers are constantly adapting to the world of ecommerce and rules of various selling venues and in order to expand their businesses and remain competitive, sellers are branching out and remaining nimble.

Jennifer

How to Fix The eBay Feedback Fiasco

Cyn — Wed, 28 May 2008 12:18:08 +0000

I applaud eBay management for taking steps to “fix” feedback on the site. The changes are in the right direction, but there are still some things that could be fixed to make feedback more fair for both buyers and sellers. After much thought, I agree with the proposal that sellers should not be able to leave negative feedback for buyers, IF the following changes are also implemented.

First, I propose that eBay do away with “neutral” feedback as it doesn’t do anyone any good. It is unfair to call something “neutral” that really doesn’t have a neutral effect. I understand that eBay feedback percentage is “Positive Percentage” which is why neutrals now effect the score. However, many neutrals are left as a form of communication rather than showing dissatisfaction on the part of the buyer, and therefore should not be used to penalize the seller.

Second, I propose that non-paying buyers be banned from leaving feedback at all. Isn’t feedback supposed to be only for members involved in a transaction? If an item is not paid for, that is NOT a transaction and therefore that buyer has no right to leave feedback. I understand that eBay cannot tell if a buyer has paid unless that buyer pays via Paypal. However, I propose that sellers be on the honor system to mark an item Paid in their My eBay when a buyer pays with a payment form other than Paypal. If an item is not marked as paid, the buyer would be unable to leave feedback. Should a buyer choose to pay with a method other than paypal, they will risk not being able to leave feedback if the seller does not mark the item paid. However, this would just be another risk a buyer takes when paying with other methods. In addition, it would encourage more buyers to use Paypal - and isn’t that what eBay wants anyway?

Third, I propose that for purposes of Seller Performance, feedback be based on all SALES rather than on all feedback left. This is how Amazon uses feedback. For Seller Performance, Amazon uses a negative feedback percentage that is based on ALL ORDERS. So a seller may show 96% on their feedback profile on the site, but for Seller Performance purposes, their negative feedback percentage may only be .08%. Amazon does not include neutrals at all in their Seller Performance figures.

Many happy buyers do not leave feedback at all and a seller should not be penalized because of this choice.

Fourth, a buyer should be given the ability to remove negative feedback. Amazon allows this and makes it very easy for the buyer to do so. When I receive a negative feedback on Amazon, I contact the buyer and work it out with them. Once the buyer is satisfied they then remove their negative feedback. Most buyers who leave negative feedback never contact me first. This gives me a way to resolve an issue and make the buyer happy. The way eBay has now implemented the feedback process leaves me with no incentive to help a customer who leaves a negative with no contact.

eBay - Great start - Now finish the job!

Cyn

Best Match - Podcast with IMA Member Larry

Cyn — Fri, 11 Apr 2008 21:27:33 +0000

In my opinion, Best Match is one of the most significant changes that eBay has introduced in the last few years. It is designed to change the Buyer experience in a big way. And every time the buyer experiences changes, it presents a challenge for sellers.

There are three types of people in the world of ebay; those that watch a change, those that complain about a change, and those who find a way to make that change work to their benefit. For those of you in the third category, I strongly suggest you listen to a podcast that I had the pleasure to record with Ina Steiner of AuctionBytes. Here’s a link to the article, which will allow you to connect to the podcast:

http://www.auctionbytes.com/cab/abn/y08/m04/i11/s01

The runtime is almost a half-hour, which, if you look at Ina’s podcasts, you will note is one of the longest ones she’s ever done. There’s a reason for that. Ina understands how important Best Match is to eBay sellers, and wanted to make sure that we provided as much information as possible to her listeners.

But for those of you who absolutely refuse to invest a half-hour of time in your business, let me give you a couple of key thoughts. First, Best Match is an algorithm, and it’s new. So it’s going to change on a pretty regular basis. What’s NOT going to change is eBay’s commitment to Best Match being the tool that will optimize buyer search. So you need to find the best way to exploit Best Match now, and then you need to regularly go back and re-test, to make sure that those findings are still operative. Second, you must, you MUST, you MUST think like a buyer. That’s a fundamental part of any marketing campaign. But it’s absolutely crucial with Best Match. Remember, eBay is trying to optimize the buyer experience. So they’re going to watch buyers, and they’re going to tweak the algorithm based on buyer reaction. If you can get into your buyer’s head, you can get into their pocket. Third, don’t trust the tools that are out there. While they may give you some general guidance and good ideas, the algorithm is constantly changing, and some tools will not keep up with the pace. So do your own testing. Do comparisons with your competition. Run two of the exact same ad at the exact same time, with only one variable, and analyze the results.

There is one other thing you should consider doing. And that’s joining the IMA (you didn’t think you were going to get away without a quick sales pitch, did you?). We have a very active discussion forum with lots of experienced (and well connected) sellers, complimented with giants in the service provider industry like Scot Wingo, CEO of ChannelAdvisor, Brian Lawe, President of MyStoreRewards.com, and others. As changes are made, the Forum is always buzzing with the latest information. The information and ideas you will receive about Best Match alone can make you enough money to pay for your dues ten times over.

So listen to the podcast, understand Best Match, and DON’T JUST SIT THERE!! MAKE IT WORK TO YOUR ADVANTAGE!!

Larry

The eBay Dictionary

Cyn — Thu, 10 Apr 2008 20:11:41 +0000

You may have noticed that recently eBay has been making up definitions for words that have been in the English language for hundreds of years. Only eBay’s new definitions only apply to Sellers, the traditional definitions still apply for buyers.

For example, the word Satisfied in DSR ratings means satisfied to buyers, or at least eBay doesn’t tell them otherwise. However, if an eBay seller has all “Satisfied” ratings, versus “Very Satisfied” ratings, eBay is not satisfied. No, if your buyers are only satisfied, you will lose Powerseller status and be downgraded in search.

The other word is “neutral”. A buyer can rate a transaction as Positive, Neutral, or Negative. The Merriam Webster online dictionary defines the word “Neutral” as “ not decided or pronounced as to characteristics”, which would mean the buyer has no opinion either way. However, eBay, in their dictionary, has decided that “Neutral” means a buyer had a negative experience. When eBay figures a sellers perfomance rating they figure any neutrals as negatives. However, once again, eBay does not tell the buyer about their new definition of Neutral.

Feel free to contribute more new definitions from eBay!

Cyn