eBay are now worse than whores – ask any business seller

eBay are whores”. That’s was the verdict of an American friend and regular eBay business seller.

“How so?”, I asked. He went on to explain that eBay and PayPal would do anything for money, and everything imaginable had price attached which you had to pay if you sold through them. My friend was a typical right-leaning free market American, and I had to smile at his complaints about big business doing what it does best. If he wanted to sell his collectable items in an on-line auction it had to be  through eBay, because eBay has an effective monopoly on buyers. eBay was simply obeying the laws of supply and demand; charging the customer (that’s the seller) the maximum they were willing and able to pay without scaring too many away. With an effective monopoly it’s hard to scare them that much.

Since then eBay’s use of its monopoly power has taken a very dark turn indeed, in response to one of their biggest problems: Criminals use eBay. Most of us have bought something through eBay and discovered the seller was less than honest, and eBay feels that this situation is going to adversely affect their revenue in to the future. Recently they’ve declared war on rogue traders, but it such a clumsy manner their actions are immoral and possibly bordering on the illegal.

A few years ago I started hearing complaints from eBay sellers who’d given up moaning about high commission rates in favour of how eBay was making it very easy for buyer’s to defraud them. This started with PayPal, the no-longer-so-optional money transfer system now owned by eBay that sellers are pressured in to using. If a criminal orders something, pays using PayPal and once they’ve got the goods decides to complain (or claim the goods never arrived), PayPal takes the money back from the seller, with no effective mechanism for appealing. As I understand it, the seller has to prove that the buyer received the goods before they get their money, and this just isn’t realistically possible in many circumstances.

PayPal and eBay hardly invented mail order fraud, but they’ve made it very easy for the criminals. Banks would investigate in the case of such a dispute, but by all accounts, eBay does not. All the seller could do was leave negative feedback against the buyer, so future sellers were forewarned and could make up their own minds about dealing with someone.

In the latest twist, sellers can no longer leave negative feedback about buyers, effectively allowing buyers to lie and cheat as much as they wish with no risk of exposure or other consequences. Sellers have to quietly absorb the loss while the criminal selects his next victim.

You may think this is as bad as it could get, but now eBay has implemented what it calls “Detailed seller ratings”, aka DSR. Basically buyers can (anonymously) rate sellers out of five for things like accurate description and delivery time. If a seller gets, on average, less that 4.6 out of 5 then they encounter difficulties with eBay. Sellers have told me that they receive letters saying that they “need to improve”, followed shortly afterwards with having their accounts suspended indefinitely “to protect buyers”. Does everyone apart from eBay see the problems here?

Firstly, there are some very strange people out there. If they don’t like what they bought they’re going to give the seller a bad rating for everything.

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Secondly, many people are unlikely to give anyone 5/5. At one time, my job was reviewing things. I did it every day, and I’d never give anything 100% unless it was incapable of improvement. With eBay the next step down is 80%, which by normal standards is very good indeed. However, on eBay’s DSR system, if someone gets to many 80% ratings their account gets suspended!  At one time I didn’t know that, so I’d routinely give everyone a score of 4 unless there was something extra-special about the service. Most people writing a review would do the same.

Finally, this is a recipe for scamming. Supposing you and a competitor were both selling the same thing into a niche market. eBay was excellent at niche market products, once. Unfortunately, in this cut-throat  online market place, if you’re not the cheapest you’ll lose the business, but if you sell at rock bottom you make no profit. So what can you do? eBay has the answer – simply ask a few of your friends to buy items from your competitor and then give them consistently bad DSR scores. eBay will shut them down for you, with no right of appeal, and the way is now clear for you return to your full profitable prices. In the good old days you had to hire a bunch of thugs to beat up your competitors and burn down their premises  now you can get the same effect with a few clicks of a mouse. If someone else appears selling the same thing, they’ll have a “unknown” rating anyway, so a couple of bogus purchases and they’re out of business. This works; I’ve seen the victims and I’ve seen eBay’s attitude to doing anything about it.

Sellers are in a very difficult place. If eBay closes their account, they’re out of business. It’s high time eBay was taken to court over this matter, that of putting British companies out of business for no reason. Unfortunately eBay is hiding behind a flag of convenience. Although it says “ebay.co.uk” on the web site, they’re operating through Luxembourg (and challening the profits through Switzerland to avoid UK corporation tax). Taking them to court isn’t going to be easy.

In the USA, where the jurisdictional is less murky,  there have been several class actions against eBay In response, eBay has altered it’s user terms and conditions such that everyone has to agree not do this any more.

I think it’s high time that eBay developed a sense of responsibility towards the countries that are allowing it to operate. It enjoys a effective monopoly position, yet companies needing to use it are ruined at the whim of a some faceless functionary within eBay, who might be in any part of the world. Power without responsibility is always a bad thing. If that’s not enough to make our government take action, they should consider industrial-scale tax avoidance scheme eBay is employing.

 

 

 

Warning about “fulfilled by Amazon”

Beware – ordering something “fulfilled by Amazon” is no guarantee they’ll look after you. I ordered something with a driver CD – due to bad packaging (from Amazon) it turned up with a mangled CD, although the item was pretty robust and looks okay. Well – ordered through Amazon so they’ll sort it out…

Well no. Get this:

Me: Item arrived in poor quality packaging from Amazon (direct). Badly squashed – product box was 2″ high, Amazon outer only 1″ high. CD with driver software in same box as product visibly damaged and unreadable. Can’t tell if product itself is okay but appears unbroken.

Amazon Rep: Hello, my name is *****. I’ll be happy to help you today.

Me: Hi. I think I might have messed up with the UI. This relates to “<piece of hardware>”

Me:  Order # **************

Amazon Rep: I am sorry for the condition in which your order arrived.

Me: It’s hopeless packaging. It was squashed and the CD bent around the scanner – wrecked!

Amazon Rep: Thanks, Frank.

Amazon Rep: May I know the name of the item that arrived in a damaged condition? Me: Sure – as above. Specifically “<piece of hardware>”

Me: I ordered this direct from Amazon because I thought it might be better supported than the others available. Do you have the software available for download?

Me: There’s a bar-code on the box, but no hint of the manufacturer or a web site where I might find the software

Amazon Rep: I see that you have placed order for this scanner with the seller ‘M&S’ and it is ‘Fulfilled by Amazon’.

Me: Marks and Spencer?

Me: ’twas definitely in Amazon packaging.

Amazon Rep: Yes, the order is fulfilled by Amazon.

Me: Did the steamroller go over it before or after you posted it?

Amazon Rep: This item was labeled ‘Fulfilled by Amazon’. Items labeled ‘Fulfilled by Amazon’ are sent to you directly from an Amazon.co.uk Fulfillment Centre.

Me: Thanks – I know – that’s why I chose to get it from you as your delivery is generally hassle-free. But this doesn’t help with the mangled CD. Fortunately the scanner itself is made of ABS and designed for grease monkeys to drop it so it looks like it survived. But it’s just a brick without the CD.

Amazon Rep: Unfortunately, we are unable to create a replacement order for the items that are fulfilled by Amazon.

Amazon Rep: Could you please return the item for a full refund?

Me: No. I just want the software. If you’d like to pick it up subject to the distance selling regulations 2000 you’re welcome to do so – and I’ll tell warn everyone else about this crazy policy – but the software would be preferable for all concerned.

Amazon Rep: Could you source the software CD from your local store?

Me: Alas not, it’s not got any makers name on it, or that of the manufacturer. It’d make more sense to download it but there’s no clue as to who made it.

Amazon Rep: If you can source it from your local store, I can issue a partial refund.

Amazon Rep: If you wish to receive a full refund, you’re welcome to return it for a full refund.

Me: Distance selling regulations – you have to collect it if you want to go the refund route. Are you based in the USA? This is a European sale.

Amazon Rep: We will waive the return shipping charges, Frank.

Me: No, sorry, you won’t waive any shipping charges as you’re not allowed to make any. According to the Distance Selling Regulations you are required to send someone around to collect it at your expense. All I need to do is hand it over. But I’d much rather have the software.

Me: Please can you just tell me who produced (or sells) this thing, I’ll go to the web site and download it.

Amazon Rep: The manufacturer of this scanner is ‘SainSpeed ‘.

Me: Okay – thanks I’ll check the SainSpeed web site.

Me: they don’t have one :-(

Amazon Rep: I am sorry to hear about this, Frank.

Me: I’m flabbergasted. I thought Amazon was a safe place to buy things!

Amazon Rep: This is not a common occurrence, Frank.

Amazon Rep: We value this kind of customer feedback, as it helps us to provide the best possible service. I will forwarded your comments to the relevant department here.

Me: Okay. Is there any way you can get me a disk? if not, can you swap out the complete package?

Amazon Rep: Unfortunately, our system will not allow us to create a replacement order for the seller items, Frank.

Amazon Rep: If you prefer, you can return the item for a full refund, Frank.

Me: If you want to pass this on to the seller (if you reckon it’s not you) then please point me at them. Visa reckons it’s you (this is also governed by the Consumer Credit Act).

Amazon Rep: I understand your concern, Frank.

Amazon Rep: I am sorry for the inconvenience caused.

Amazon Rep: You have placed this order with the seller ‘M&S’ and it is ‘Fulfilled by Amazon’.

Me: So what am I supposed to do? Wait for you to collect this one and order another one?

Amazon Rep: In this case, I request you to return the item for a full refund.

Amazon Rep: Could you post it?

Me: Okay – you’ve got the address. Come and collect it. Meanwhile I’ll get Visa to recharge the value to my account. You contract was with Visa. Visa will pay you when the contract is fulfilled. I won’t pay Visa until their contract with me is fulfilled. Okay?

Me: So when do you want to pick it up?

Amazon Rep: In order to resolve this issue, we need to talk to you via phone. I will be happy to connect a call for you.

Amazon Rep: May I know your contact number?

<later>

Me: I’m on the ‘phone to one of your friends!

Me: Thanks for your help.

Amazon Rep: You’re welcome.

Amazon Rep: Thank you for chatting with Amazon.co.uk. We hope to see you again soon. Have a Great Day!

 

So, buying something from Amazon isn’t any guaranteed they’ll sort out any problems – even if their packaging is the problem. The subsequent telephone call went down the same route. I insisted on getting the software, not messing about with posting it back to them. Eventually they gave me the ‘phone number for this mysterious supplier:  0845-609-0200. I wouldn’t normally list a ‘phone number here, but a quick check revealed that it was the widely published customer service number for Marks and Spencer! I was skeptical, and queried this and asked where the number came from but they insisted that it really was the Marks and Spenser selling through Amazon. (The nature of the device – a diagnostic interface – is highly suspicious).

I’ll call Marks and Spenser tomorrow. It could be interesting. Amazon isn’t off the hook buy a long way.

Billing problems 1899.com

1899 and 18866 are two apparently linked low-cost telecoms companies. They’re so-named because that’s the prefix used to route through them.

Now some time ago I started using their services and wrote a couple of articles recommending them, with the proviso that you shouldn’t expect any kind of customer service. The company appears to be based in Switzerland and they don’t want to talk to anyone. But they’re legit. The only thing I said back then was to pay by credit card and get consumer protection. If you don’t mind this, they do deliver. Or did deliver.

After many years I had to change my credit card number, so I filled in the billing change for both companies. 1899 took no notice, and after several months tried to bill the old card – and was rejected. I made sure they had the right one, and told them to try again, but they wouldn’t. When I eventually got through to someone apparently from 1899 they said it was their policy not to try a card a second time and asked me to send the money using an international transfer, after which they’d start billing the card again. I don’t think so. This could have been anyone’s bank account, and if genuine it’s a very strange way to do business – as well as costing me £20 for the transfer. Apart from which, they weren’t trying to charge the old card again – it was a new number. That’s the point!

Their terms of business say you need to pay by credit card – no problem, they can charge the card.

They didn’t.

I wrote back saying charge the card, or if you really don’t want to, you can have cash. This is an offer to pay using legal tender – if they refused they won’t have a leg to stand on if they want the money any other way. I assumed they’d see sense.

They didn’t.

This went back and forth. I made it clear – charge the card (recommended), take the cash or I’ll see you in court. It’d be interesting to meet these guys if they went for one of the last two options.

It’s over a year now. I still owe them for the calls, and haven’t heard anything about it. It’s annoying that I owe them money. The service doesn’t work any more (unsurprisingly). I can manage without it. 18866 still works (that half of the company is using the correct card).

So do I still recommend 1899 and 18866? Well I suppose I do, but as I said in my original articles, it’s fine when it works but don’t expect any sane or sensible customer service if it doesn’t.

Seven Blunders of the Internet World

I’ve been involved with web hosting since the early 1990’s, and every week some hopeful bright spark comes to me with a great idea about making a fortune as an Internet entrepreneur. Whilst I hate to rain on anyone’s parade, a quick reality check is in order. Just because Amazon can make a fortune selling books on-line, doesn’t mean they can. Amazon got there first and they’ve got a slick, well organised operation. In short they can buy the books cheap, store them efficiently and, most importantly, stuff them into envelopes and post them quickly and cheaply. This doesn’t mean it’s impossible to compete with Amazon, but they were there first and have a massive advantage. If you decided to by a Cessna and try to compete with American Airlines on the London to New York run everyone would (rightly) say you were nuts, so why should it be a surprise to learn the same applies on-line.

Whatever you do, remember the ease of starting up on the Internet works for you and the competition. You need a unique selling point; a barrier to entry that only you can cross. If you don’t have one you’re competing with the rest of the world.

Here are seven popular but doomed ideas I’ve seen time after time…

  1. Auction Sites. eBay’s doing well, but they’re a bunch of *****s so you want a slice of the action. Unless you’re selling something very specialised (i.e. that eBay can’t handle) then you’re wasting your time. Why should anyone list items with you when you can’t match eBay’s user base? Whatever you think of eBay’s business methods, items auctioned to millions of potential buyers are going to fetch a better price and sellers know that.
  2. Social Networking Sites. So you want to be the next Facebook? Ask yourself why anyone would network their social life through you when there are bigger networks on Facebook (for home users) and LinkedIn (for professionals). Google is, I believe, planning to muscle in. They’re going to find it tough, but they’ve got almost limitless funds they can afford to speculate with, and their developers know exactly what they’re doing (well their top ones do). They’ll still need one hell of a good unique selling point.
  3. Blogging sites. Get someone to provide the content while you rake in the advertising revenue. How many mugs do you think you’ll find? People can either run their own site (and keep the advertising revenue) or use Blogspot.
  4. Directories. If your bright idea is to create a directory of business and get them to pay for a listing, I have to tell you it’s been done. If every business paid to be in every such directory they’d go bust in no time – they’re wise to it. They know that people will find them through Google, not you. There are ways this can sort-of work with advertising support but you’ll be lucky if they cover hosting costs this way.
  5. On-line shops. These do work if there’s a real shop behind them. If you’re plan is to buy a copy of Actinic or download a free copy of Zencart or one of the dozens of on-line shops, put something up and see who bits, forget it.

    Selling on-line you’re competing on price, order-fulfilment and uniqueness of stock – if people can get it cheaper and quicker somewhere else, they probably will. If you’re selling “unique” artefacts such as antiques or objet de art you’re competing with eBay or the artisans producing them, who would need a good reason not to set up their own web site and sell direct. If you’re thinking producers will pay for you to list them, ask yourself why they’d pay you rather than eBay or Amazon, where they’ll get far more exposure.

  6. Web Design Company. Great idea! Download some web template generator for Joomla and make a fortune creating web sites for… well your friends, family and then what? The problem is that there is very little barrier to entry and the market is flooded with the unemployed (and possibly unemployable) looking for a work-from-home job without getting their hands dirty. The real web design companies have real programmers and cater for customers with specialist needs. If you’re thinking of using Joomla you’re not in that league. Sorry.
  7. Internet multi-level marketing seller. Anyone can be a web hosting company, telephone company, ringtone provider or what-have-you – it’s easy! Just sign up to an affiliate programme, choose your branding and sell, sell, sell – along with thousands of others selling exactly the same thing. If it was easy to sell the provider would be selling direct, wouldn’t they?

    All of the above are tried and failed businesses. If you’ve got a plan that doesn’t fall foul of any of the above it’s either completely crazy or it might just work – in which case give me a call. There are some ideas that might just work, but I’m hardly going to reveal them here

Prince Charles’ attackers lucky to be alive

At about quarter past eight this morning, on on Radio 4’s Today programme, the head of the Metropolitan Police (Sir Paul Stephenson), remarked that the protection officers in Prince Charles’ car had “shown restraint” last night when the Prince and his wife were attacked by anarchists. The presenter (Sarah Montague, I think) picked up on this, and asked what he meant by “restraint”, sensing he might be implying that the armed officers might have shot some of the rioters. He declined to spell it out. So, in spite of it being obvious, I will.

The bodyguards to the heir of the throne (and, come to that, the Prime Minister and various other establishment VIPs) are there for one purpose – to protect him from those that would do him harm. They’re carrying guns, not pea-shooters. So, faced with a situation where a bunch of enthusiastic republicans are smashing through the window of his car and shouting that they wished to kill the occupants, what are SO14 officers going to do? Well if the rioters were a credible threat, get out of the car, or get off their bikes and shoot them before they get a chance to kill or injure their intended victim. They’d already broken a window – if they’d got any further into the car I’d have said they were a credible threat.

Sarah Montague, and the rioters, need to grow up.

The Church vs the Establishment

The Bishop of Willesden, Pete Broadbent, has said the marriage of our future King (and his future boss) and Kate Middleton would “last about seven years”. He went on:
“We need a party in Calais for all good republicans who can’t stand the nauseating tosh that surrounds this event.”

I always thought the church took marriage seriously, but apparently not.

His employers, the Church of England, have said he was acting as an “individual”. ‘sfunny, I thought he was a bishop.

He’s since apologised. So that’s all right.

On the same day, the Bishop of Manchester, Nigel McCulloch, has complained to Ofcom that News Corporation’s full takeover of Sky “might lead to a harmful concentration of media power”.

I wonder – is he an individual or a bishop?

But Rupert Murdoch is confident that the takeover will not damage competition. So that’s all right.

 

DVLA tax disc renewal problems

Like most New-Labour government computer systems, the DVLA is broken. I don’t just mean it’s propensity for making mistakes – I mean it’s systemically flawed.

It goes something like this…

You buy a car in March and keep it for, say, four years (i.e. until it requires an MOT). The Tax Disc will expire at the end of February, as does the MOT and insurance. You’re expected to buy a new tax disc in advance – it should let you buy one from the 5th day of the month it’s due to expire. But it won’t – it says your MOT and insurance are about to expire (which is true, they’re bound to). So you get your MOT a couple of weeks early (wasting a couple of weeks of MOT time) and persuade your insurance company to insure you for eleven months instead of one year, or some such fiddle, to get the renewal dates out of alignment.

Why should you be forced into this performance? Life’s too short to argue, but any fool can see the system is flawed.

Couple this with the fact that they can’t organise a computer system properly and you have big problems – as I do now. The DVLA computer reckons my car isn’t insured. My insurer (of fifteen years) says it was renewed as usual at the start of the month, and can’t understand why the DVLA is having problems registering it.

You can call Swansea on 0300-7906802 if you actually need to speak to a person, although they’re not keen on giving this out, preferring the premium rate automated system numbers. I did this and was advised that I couldn’t drive my car now that the tax had expired, and that the government computer system responsible for the error wasn’t their responsibility. I could, if I wished, drive to the nearest post office issuing manual tax discs and they might be able to help – apparently they can now take faxed documentation but I bet they don’t know that! Anyway, how am I supposed to drive to the nearest Post Office if I don’t have a car.

To cap it all, they said they wouldn’t actually fine me for not renewing or declaring the vehicle off-road for 14 days. That’s big of them!

I asked about who to appeal to concerning DVLA problems and got the email address for their customer services department. I don’t I’ll get much satisfaction. My MP shall be hearing about this, although he’s not morally responsible for New Labour computer systems.

I think it’s time something was done about the DVLA, and would be interested in hearing about people having similar problems.

NHS Direct is unwell

NHS Direct has the skids well and truly under it. Vandalism! Cutbacks! Distruction of the People’s NHS cries Labour.

But what was it all about? If you were ill, you were supposed to call NHS Direct and they’d tell you what to do about it – generally “Get the down to A+E or your GP service to check it out.” If you, or your child are ill, this is what you’re going to do anyway.

Having an telephone helpline for discussion of medical matters is a good thing, especially for anyone without any books on the subject or access to the Internet. Apparently this is just what we’re getting instead – it’ll be cheaper than having medically qualified on the end asking the questions and then suggesting a personal visit anyway. “Civilians” cand do that, as long as they’re briefed not to overstep their remit.

GPs came out against NHS Direct yet again in June, so presumably we’ll be hearing they’re pleased with the result. No one I know has every had much joy in calling them, although the “worried well” may have had some comfort – or had their hypochondria fueled. It’s just New Labour, upset that the new government has stopped paying for their gimmick. As to the staff that’ll be made redundent, apart from the management consultants they’re generally qualified nurses answering the ‘phone. Don’t we need more nurses actually nursing to the extent we’re importing them from the third world? I don’t see a problem with them being redeployed.

No Justice for Ian Tomlinson

The CPS isn’t going to prosecute anyone over the death of Mr Tomlinson at the G20 protests following an unprovoked attack by a police officer (Simon Harwood). They say that he was definitely assaulted, but they can’t prove the link between the assault and his subsequent death. “There is no reasonable chance of a conviction” because of this. Two pathologists though he was killed because the injuries lead to a heart attack, one thought it was a heart attack that might have been from natural causes.

Actual Bodily Harm was also ruled out because, apparently, there’s dispute as to whether the internal injuries caused by fall lead to his death, and the appropriate charge would then be manslaughter – and you can’t have both.

Common assault (from the baton attack), which caused a less serious injury, can’t be pursued because the six month time limit has expired.

The Director of Public Prosecutions (Kier Starmer QC), Steven O’Doherty and Tim Owen QC are responsible for this decision. Kier Starmer (named after Keir Hardie) is, of course, closely associated with the Labour party and the previous government (appointed in 2008) .

This is a disgrace. There’s nothing more to say.

Raoul Moat was a dangerous killer

Am I missing something here? Raoul Moat, a established life-long violent criminal, went on a rampage with some guns and shot three people, killing one of them. The police finally corner him, and at great risk to themselves, try to talk him into surrendering. When he finally gets around to shooting himself, the next thing we hear is that the Police Complaints Commission is going to investigate, and BBC journalists are wringing their hands and talking to his friends and relatives, who are moaning and wailing about their tragic loss. What about the relatives of the people he murdered or seriously injured?

Good riddance! The only reason I can think of for the police not to have shot him on sight (once identify had been established and he hadn’t relinquished his weapons) was so that he could hang later – but that’s wishful thinking.

I wouldn’t normally approve of the police shooting criminals, but in this case the facts appear so clear cut – no misidentification, and clearly armed and dangerous. Whoever got close enough to fire a Taser at him deserves a medal for bravery. I can only hope it hurt like hell.