Wednesday, September 03, 2008

unfair ebay practices regarding visibility aka search standing

How is it fair that all sellers pay the same amount of money for a listing but only a few selected ones ever make it to the first page. This is what is happening in ebay through an obscure algorithm that determines whether or not your listing for which sellers pay a fixed price will be prompted in the first pages of hundreds of listings inside ever wider categories. At the beginning ebay was able to calm the power-sellers by telling them that the better rated sellers would appear on the first spots. They organized the areas to be rated and had all the sellers compete for recognition in this areas. As times go by sellers realize that it was not as simple as that. Many sellers with low rating(DSR) appear at much better places than prime seller who's rating is above ebay's average. As it turns out ebay's obscure algorithm does not want many items from the same seller to appear in the main pages, as it discovered that their algorithm resulted in only a few sellers getting most of the visibility and therefore, the sales. Regardless of what kind of algorithm they use, the question remains: Is it fair to charge all sellers up-front fees for an unknown visibility outcome?

Without being able to offering clear visibility status or perhaps exposure time for their listing price; ebay has become more like a gambling place than a fair market. If we compare this with other media such as TV ads, newspaper spaces or even internet Pay-per-click ads; we can clearly see how unjust ebay's obscure visibility How is it fair that all sellers pay the same amount of money for a listing but only a few selected ones ever make it to the first page. This is what is happening in ebay through an obscure algorithm that determines whether or not your listing for which sellers pay a fixed price will be prompted in the first pages of hundreds of listings inside ever wider categories. At the beginning ebay was able to calm the power-sellers by telling them that the better rated sellers would appear on the first spots. They organized the areas to be rated and had all the sellers compete for recognition in this areas. As times go by sellers realize that it was not as simple as that. Many sellers with low rating(DSR) appear at much better places than prime seller who's rating is above ebay's average. As it turns out ebay's obscure algorithm does not want many items from the same seller to appear in the main pages, as it discovered that their algorithm resulted in only a few sellers getting most of the visibility and therefore, the sales. Regardless of what kind of algorithm they use, the question remains: Is it fair to charge all sellers up-front fees for an unknown visibility outcome?

Without being able to offering clear visibility status or perhaps exposure time for their listing price; ebay has become more like a gambling place than a fair market. If we compare this with other media such as TV ads, newspaper spaces or even internet Pay-per-click ads; we can clearly see how unjust ebay's obscure visibility algorithm really is. It seems not even their engineers can tell what the outcome will be, thereby they have a flat fee for all listings and feature sellers at almost random hours and times. In TV, they would definitely charge more for ads at peak hours and only a small fraction of that for commercial in the middle of the night. In news papers they would charge more for the first page and the size of the listing. All clearly explained before charging customers. In the internet world the offer and demand determines the price of different words where everything is clearly explained before customers pay for their time, space or word. Ebay was a fair market when everything was a straight forward cue of ads. The peak hours had more ads thereby, had more pages of ads in less time which automatically decreased visibility.

Given all these facts, I am really surprised that no one has sued ebay for their unfair practices, closing their one's open market with fair trade practices. To make matters worst, because they haven't communicated sellers of all the ongoing changes, their practices are completely illegal and anti-constitutional.

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