Feedback has always been an issue on eBay both for buyers and sellers since the creation of the once-neighborly online auctioneering service.

The feedback system was originally devised by eBay over 10 years ago and is one of the primary reason why eBay not only prospered but thrived in the marketplace it has dominated for the last 10 years. The idea was that when both buyers and sellers could report on the results of a successful or unsuccessful transaction, everyone would be on thier best behavior to avoid developing a bad reputation. It has been recently reported by as yet unnamed business journalists that this eBay system of feedback, which has worked to a degree for over 10 years, was considered the "Wild West" of eCommerce.

A recent Google search for the keyword eBay feedback revealed over 11 Million hits with some mention of this infamous or dubious system. Google Results xxxx of about 11,100,000 for the search term ebay feedback. (0.22 seconds)

The feedback system on eBay has always created stress and controversy among the site's users.

• Some would argue that sellers abuse the system by not leaving feedback immediately for honest buyers who fulfill their part of the bargain by paying promptly for an auction item won or purchased.
• Others (the Sellers) have always maintained the policy they have adapted is necessary due to the millions of not-so- honest buyers in the world who would threaten poor feedback posting if the seller will not perform some service such as provide reduced shipping or a partial refund.  Sellers have experienced the gamut of buyer feedback faux pas from simple mistaken premature feedback to all-out attempts at extortion over a simple feedback placement.

Sellers' only defense against such negative feedback threats has been to withhold feedback left for buyers until they receive positive feedback from the buyer.

Until Now...

eBay has announced - in the midst of its recent round of fee increases and hoopla over the changing of the guard from Meg to JD - that sellers will no longer have the ability to protect the feedback rating they have earned.  Sellers will have no choice in the feedback cycle at all.  If a buyer pays, they get positive feedback...period.  A novel and honorable standard - in a perfect world.

News Flash - Internet retailing is not a perfect world.  Buyers are not always right and sellers are not always bad.  The opposite truths could also be argued.  It really boils down to a case by case basis.  A sweeping policy such as this can not be considered fair or just and the only parties being penalized are the sellers, with small sellers being penalized the most.

High volume sellers already have no problem with poor feedback. They collect hundreds of negatives each year with very little effect on the bottom line because these same sellers collect thousands of positive feedbacks in the same time frame. The percentage change for a negative dropped on a high volume seller is minuscule.

Small sellers, mom & pop sellers, consignment sellers and sellers of unique and expensive product lines with low volume will be the segment hurt the most by this new policy.  One negative for a new seller can put that seller out of business. One negative for a seller with less than 100 feedback will remove any discounts or other incentives eBay is so proud to offer under the new fee plan.  It is not a reasonable incentive if it cannot reasonably attained.

This new feedback plan is almost universally considered as a poor move by eBay among long-time sellers who are posting their vitriol and vehement opinions on the eBay forums.  It will be interesting to see how it all works out.

In our business, we plan on leaving positive feedback as soon as we receive payment and hope we do not receive too many helter skelter buyers. After all, we all wish we could live in a perfect eBay world - may as well try to see how it works before deciding it does not exist.