Response from Colin
Hi, Sandi, Steve, Shannon, Herb, Thomas, Charles, Jed, Doel, and Jim!
Thanks for the message. You guys came up with some good questions...
My responses are in-line below.
1. Does the 80% automated settlement rate apply to both low value and high value disputes (e.g. car sales on Ebay)?
It applies to all of the matters filed by eBay members at SquareTrade. Some of those are cars, some of those are posters… I don’t have a breakout. However, I can say that our internal ODR mechanisms produce a similar resolution rate in cases where the respondent actually responds. When you factor in the non-response cases that resolution percentage comes down a little bit.
2. If a party settles thru the automated system, do these folks come back to ebay at the same rate as those who never had a dispute? At the same rate as those who have human intervention and settlement?
We track the impact of disputes on future member activity on the site, but it’s a difficult thing to get a firm number on. The data I’ve seen indicates that having a dispute may have a slight impact on future activity on the site, but it’s so slight as to be in the margin of error.
3. If folks do not settle their dispute, do they stop coming to Ebay?
No, many people who have disputes work through them and keep coming back. Most eBay users understand that any dispute they experience is between them and their transaction partner, not eBay as a whole, so if anything they just learn to be more careful, check out feedback thoroughly, and think twice before sending off money (especially in a money order or bank transfer). Really newbie members may have their overall impression of the safety of the marketplace affected by a single unresolved dispute, but most of the members I’ve talked to learn from it and continue on the site fairly unabated but more cautious.
4. Any data on whether geographic location impacts settlement, e.g. those close together more likely to settle than those at great distance?
I’ve seen nothing that correlates geographic proximity to likelihood of resolution. I have seen some indicators that transboundary transactions have more problems than domestic transactions, but again, it’s a pretty small difference. There’s some interesting cultural issues that factor in. But Florida-Florida vs. California-Florida… no meaningful difference.
5. Are Buyers who have pre-communications with Seller (re details of item and the like) more apt or less apt to a) have dispute b) settle?
It depends on the nature of the pre-communication. I’ve seen exchanges prior to the transaction that resolved potential points of disagreement, and I’ve seen sellers who make a representation in a pre-transaction email that leads to a dispute post-purchase. I think most pre-transaction communication is almost like an extension of the message presented in the listing. However, the tone set in those early communications is a pretty good indicator of how future conversations will go. If the communication is stilted, impolite, or “on edge” in the early messages there’s a better chance problems will erupt later. If the conversation is friendly and the members take time to build some rapport there’s a smaller chance that things will run off the rails, and if a problem does arise, it’s more likely to be addressed quickly.
6. Any evidence that DR system itself prompts frivoulous complaints . . . that people take advantage of automated system to get a better deal . . take another bite out of apple?
The system is designed to minimize that. We’ve worked hard to minimize potential abuse points. For instance, in the old system, sellers had the ability to file for a “mutual agreement to withdraw” a transaction, and the buyer wouldn’t be penalized and the seller would get their Final Value Fee credit refunded. Well, some sellers were selling the item, getting the profit, and filing for “mutual agreement” anyway, just to get their eBay fees back on top of the profit they made from the sale. There are legitimate reasons for withdrawing a transaction by mutual agreement, but we needed to close that abuse loophole, so we put a system in place where the buyer has to confirm a mutual agreement. Now buyers act as a check against seller fraud. We’re always on the lookout for potential abuse channels like that, but fortunately they are very much the exception. The real risk in my mind is not the use of ODR systems to get better deals, but the potential abuse of the systems by members looking to harass other members. We’re on the lookout for that as well.
7. Any evidence that people use negative comments as leverage to get better deal?
Definitely. To a certain degree that’s legitimate – that’s what feedback is, an incentive for members to behave well so they get good feedback. When it crosses a line – when one buyer is using the threat of a neg to get value they don’t deserve – then it becomes feedback extortion. This is a problem particularly in motors. We created the Independent Feedback Review process to deal with that issue. http://pages.motors.ebay.com/services/independent-feedback-review.html
8. Is there a fee to change negative feedback? Can this be waived by agreement of parties?
There’s no fee to de-score feedback through the Mutual Feedback Withdrawal process (http://pages.ebay.com/help/account/withdraw-feedback.html) or to have feedback removed that violates eBay’s feedback policy (posting contact information in the feedback, referring to ongoing law enforcement investigations, etc.) – there is a fee for Independent Feedback Review and SquareTrade’s live mediator services.
9. In human assisted mediation process, is there a difference in settlement rate based on amount at issue (low value vs high value)?
SquareTrade would have those numbers… unfortunately I don’t have them. My guess is that the settlement rate would be in the same ballpark. People’s reluctance to settle seems not to correlate to price. I’ve had knock-down-drag outs over $3.25, and easy settlements over $10,000.
10. How would you best improve ST . . . E Bay approach to DR? (realize that this may be confidential info)
If you want me to answer that question you’re going to need to invite me down to Pepperdine to hang out on the beach and drink pina coladas with the rest of you! J
Thx for your consideration. All are greatly valuing your book!
Glad to hear it. I appreciate the interest. I find this stuff fascinating, and it’s gratifying to know that other people are interested, too!
Some good places to look at re. ODR on eBay:
New announcement just today re. the new INR/SNAD process:
http://www2.ebay.com/aw/marketing.shtml#2005-01-06085130
Tour of the INR process:
http://pages.ebay.com/securitycenter/itemnotreceivedprocess/index.html?ssPageName=CMDV:AB
The new Resolution Center:
http://pages.ebay.com/securitycenter/index.html?ssPageName=CMDV:AB
The Unpaid Item process:
http://pages.ebay.com/help/tp/unpaid-item-process.html
Unpaid Item tour:
http://www.ebay.com/securitycenter/unpaiditemprocess/
Also, check out the Dispute Console (accessible from everyone’s My eBay page)
Take care.
Colin
