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eBay's feedback changes set to kick off Monday

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Back in January, e-commerce giant eBay (NASDAQ: EBAY) announced some very controversial changes to the site that led to an uproar and seller boycotts within the eBay community. One of the most controversial changes was the decision to remove sellers' ability to leave negative feedback on the buyers, and this change is slated to start this upcoming Monday.

The decision to remove the sellers feedback has led to many eBay sellers finding alternative e-commerce sites to sell their goods, and those who remained are very worried about the impact this decision will have on their business. Sellers insist that the feedback is crucial in sifting through the large amount of buyers that give sellers hassle during transactions, but eBay feels that the change will benefit everyone on the site and prevent sellers from leaving retaliatory ratings for buyers.

The two sides just cannot see eye to eye on this one. Sellers insist that the feedback system allows the site to have a better buying community, while eBay believes that the changes are "really to make sure that we've got buyer accountability and seller accountability."


eBay has tried to reassure its sellers that the new system will be to everyone's benefit through the use of an improved "sellers hub," which allows sellers to file complaints and report and troublesome buyers. While this sounds nice on the surface, many are concerned that this is merely window dressing, and eBay will not live up to its end of the deal.

The ones who feel they are being violated the most are the medium to small sellers on the site. These are the users who have been most vocal in their displeasure, and in many cases have been seeking out alternative e-commerce sites for their business. A couple of the alternative sites include OnlineAuction.com and Ruby Lane.

Are you an eBay user? What are your thoughts on the changes taking place on the site? Are you giving the new changes a chance to see how they work out, or have you already started to migrate your e-commerce business elsewhere? If so, what sites have you moved to?

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Last updated: November 25, 2009: 04:36 AM

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