Whalespeak

from flickr: Ryan Fanshaw Photography

This has been bothering me for a long time. I use eBay a lot, and recently it has become less fun, but I can’t put my finger on why exactly.

The site is flooded with generic, no-brand products, (at least in the categories I spend most of my time) being sold for razor thin profits (usually through inflated postage charges). Products have become commodities. There is no call for quality or good service. The opportunity for the home seller is drowned out in a the noise.

There are other subtler problems which are more about expectations. Customers assume that goods on eBay are cheap, but for many things you can find cheaper alternatives online. (Books are a particularly good example.) It’s also taken for granted that service will be unpolished. if you’re buying it online, from a stranger, often second-hand, it’s somehow implicit that you can’t expect to be treated well.

The main problem facing eBay is that it dominates online auctions. And it’s difficult for anyone to compete in that kind of venture without a very distinct service. When you hold that kind of power, it’s easy to be complacent.

So how do you solve these problems? I’m not sure what the best strategy would be, but here are some things I’ve been considering:

1. Separate auctions from fixed price.

It’s difficult to separate businesses from individuals, but easier to separate true auctions from fixed price sales. Commodity sellers don’t like fixed price because it represents too much risk. That’s why I like auctions, they give me an illusion that I might get a good deal.

2. Encourage better service.

Getting sellers, even people like you and me sitting at home, to think of themselves as service providers and giving them good advice on how to improve their customer service would improve the whole experience of the site. It could also lead to better differentiation between sellers. However, this might require that they…

3. Change the feedback system.

Feedback does a lot to punish and prevent scams. If a seller has pages of good reviews, you feel more confident parting with your money. But it’s more difficult to identify great service, something above and beyond. Perhaps a higher level of positive feedback is required. A new category which identifies the exceptional.

I’ve been thinking about this a lot in terms of how I handle a sale on eBay and I’ve come up with a few ideas I’m going to try over the coming months. In a way, it’s a great environemnt to test customer service ideas.