Power Sellers Unite

jonathanr · Joined: 12 Jul 2006 Posts: 7

Hi there!

Please take a look at ReliaBid.com. This site provides great tools for eBay sellers to reduce the number of non-paying bidders and unpaid items in their auction listings. The service works really well, and over the past year only 1 in 62,000 auctions protected by ReliaBid was reported as unpaid.

ReliaBid's primary offering is their seal program- it works similar to placing an alarm system in a store window. After all, your auctions are like your store window! The ReliaBid Seal Program is designed for one purpose: To ensure that online auction sellers avoid non-paying bidders and unpaid items. ReliaBid subscribers' auctions will automatically display a unique seal, which is proven to be highly effective in ensuring that winning bidders promptly fulfill their payment obligations.

ReliaBid's Benefits to Online Auction Sellers

* Decrease the instances of unpaid items by over 99%.
* Decrease listing fees by not having to re-list items.
* Save the valuable time that you would otherwise have wasted chasing after non-paying bidders.
* Increase inventory turnover and improve your operations.
* Increase working capital and grow your business.
* Increase monthly revenue.
* Increase the number of committed buyers.
* Reduce the risk of time sensitive items expiring unpaid.

ReliaBid is the first company to bring online auction sellers the same loss prevention tools that have helped 'big businesses' set themselves apart from the competition. Whether you are just starting out or a titanium PowerSeller, ReliaBid provides the only solution to help rid your business of non-paying bidders. The complete solution ReliaBid offers to online auction sellers is the single most effective program available to eliminate non-paying bidders from auctions. See how it works by viewing our flash demo. Or, if you are a trading assistant or drop-shop owner, then click here to learn more about reducing your non-paying bidders and unpaid items.

If you would like to see ReliaBid brought to other auction venues, please post a reply here and let us know where else you would like to see the service offered.

beckysthisnthat · Joined: 02 Mar 2005 Posts: 1577 Location: Texas

Welcome to PSU. I read the write up at AuctionBytes

While it would be nice to see some of these NPBs get what's coming to them, I have too few to worry with it, let alone pay for the service. Most auction sites refund all fees associated with NPBs and my time spent pursuing an occasional NPB just wouldn't be worth it. JMO, however. Might be good for someone who has a higher rate of them, I suppose.

elgato · Joined: 24 Feb 2005 Posts: 17241 Location: Texas

Welcome to PSU and thanks for posting this info to our registered users here
For powersellers and large businesses this might be a great asset to have but as becky stated--For smaller sellers it might not be worth the overall cost

Once again, we welcome you here and appreciate the info! :D

ktach · Joined: 12 Jul 2006 Posts: 52

I think its down to the auction site owners to do something about NPBs.... we are what keeps these sites running and making a profit.. without us they are nothing... so its time they got their acts together and listen... in my opinion 1 strike and your out... so auction site owners LISTEN to your members without them your just a empty site..

jonathanr · Joined: 12 Jul 2006 Posts: 7

For smaller sellers the value may be less. But, it also depends how you think about it perhaps. If a small seller has 10 auctions and 1 doesn't pay, that is 10%. That is potentially a serious problem. Additionally, with ReliaBid's fees scaled to a percentage model, the service is affordable for smaller sellers.

elgato wrote (View Post): › docWrite("quote")
...For smaller sellers it might not be worth the overall cost

The overall cost relative to the amount of business the seller is conducting should stay the same because of the pricing model. That was the intention, did we miss the mark on this?

I also think that bidders may perceive it as 'okay' to skip out on a smaller bid than a larger one. "If I bid on a $5 pair of sunglasses and then change my mind, the seller won't be too upset, right?" Of course I, personally, don't think that way, but I think a lot of buyers, especially new-to-ebay buyers do. I think all transactions, regardless of the transaction price or the seller's volume are entitled to equal amounts of respect and committment from the buyer. And, since ReliaBid costs only 1/4 of 1% of the final value it is affordable for smaller sellers. There is no flat monthly fee or minimum fee services.

I'd challenge any seller that has unpaid items to try the service out free for 30 days and see if there are still unpaid items.

ktach wrote (View Post): › docWrite("quote")
I think its down to the auction site owners to do something about NPBs....

I agree to the extent that it would be convenient if the auction sites would do something. But, at the same time, what they are doing is not that different from the way things operate in the brick and mortar world.

If you don't pay for your cell phone bill, or don't pay rent, or (and perhaps most relevant) sign a contract and then don't deliver payment, then the other professional party would have access to the same loss prevention mechanisms we offer, the ability to debt collect. However, the important thing here is that you would be detered from skipping out on a contract or rent because you recognize the potential reprecussions of doing so.

:arrow: The primary service that ReliaBid offers is the ReliaBid seal. The seal alerts bidders that the seller is professional and that this committment is just like making one in the offline world. I think the service we offer really is just leveling the playing field for online sellers- we give auction sellers access to the same loss prevention tools that brick and mortar enterprises have had for decades.

I really appreciate the feedback- we've worked really hard on this idea and company, so please keep it coming. :D

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

I'm gonna throw a punch that might not land... but it's a thought:

In the offline world there are some auction houses that a simple Joe like myself cannot just walk into and start bidding on stuff.... they have requirements like showing financial worth, value, dependability, etc... insurance basically that I can buy what I'm bidding on...

So what do i do? I don't go to those places - yes, they're out of my price range and I can't afford anything up on the auction block anyway - but I'm the sort of client they DON'T want to attract anyway.

Regardless - they close the doors to me

and I just get the feeling this sort of service puts up that warning "seal" to potential simple joes that I DO want to attract to my listings. The service may be "leveling the playing field" for sellers, but it's alienating a bidder that may simply move on to a seal-free listing.

But I digress - if I were auctioning off the Red Violin I would use your service assuredly.

Marty

jonathanr · Joined: 12 Jul 2006 Posts: 7

AslanStore wrote (View Post): › docWrite("quote")
and I just get the feeling this sort of service puts up that warning "seal" to potential simple joes that I DO want to attract to my listings. The service may be "leveling the playing field" for sellers, but it's alienating a bidder that may simply move on to a seal-free listing.
Marty

Marty-

Actually, I think you are right on target with your concern. In fact, it is one we have had for some time. I wish I could find a version of original seal to link to here, because I think it may have even done a little of what you are saying.

This spring, we spent a lot of time and money on running focus groups, in cooperation with George Washington University, and developed the current seal. The current seal is supposed to promote the idea of two-way responsibility and commitment. It is also supposed to say that is protected, but not threaten. To make a firm statement, but in a way that sounds professional and reassuring. We received a high degree of feedback that the seal- although not designed for this- promoted a sense of confidence in the seller being a professional, it showed he was investing in his business, etc... Not that that is our thing. If you really want to boost buyer confidence, go with BuySafe... But, I we did really, really try to address the concern you stated. Do you have any additional feedback on the seal? Is there stuff we should add, remove, change?

-Jon

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

OK, checked out the seal... and, yep - it's exactly what I was fearful of.

Mind you - the PROGRAM is great and in essence offers a service that I would stand behind... and indeed WANT for that company (namely yours) to go heavy handed on non-paying bidders... but

Let me give you this analogy: If I walk into a Footlocker to buy a hundred dollar pair of shoes (which I wouldn't lol) and I write a check for it... but I don't beat the bank and the check does a rubber bounce. Footlocker has partnered with a heavy handed client that will bug me on the phone everyday until it's paid, send me mail once a week and even take me to small claims court. Well - I would deserve this activity for my irresponsibilty... but if I were at the counter writing a check for my shoes - knowing good and well my check is gonna be good - but I look up to see a sign next to the register that says:

ATTENTION BAD CHECK WRITERS: If you write a bad check or if it bounces we will make your life miserable. We will call you on the phone everyday and we will send embarassing letters and may even take you to court... so think twice before writing that check!

Guess what... I don't need this business.

And not to be harsh - but that's the feeling I get from your seal with a heavy brass lock and eye-catching words like "non paying bidders" "responsibility" "commitment" "accountability"

i just think the service would be just as effective without the heavy duty warning.... go after my non-paying bidder - but don't make my legitimate customers think twice about buying.

just my two cents

Marty

jonathanr · Joined: 12 Jul 2006 Posts: 7

Hi Marty,

You make a good point.

AslanStore wrote (View Post): › docWrite("quote")but if I were at the counter writing a check for my shoes - knowing good and well my check is gonna be good - but I look up to see a sign next to the register that says:

ATTENTION BAD CHECK WRITERS: If you write a bad check or if it bounces we will make your life miserable. We will call you on the phone everyday and we will send embarassing letters and may even take you to court... so think twice before writing that check!
Many stores I visit do have signs from TeleCheck or a similar entity that say there is a $25 charge for a returned check. And, I would agree our seal does, in effect, a very similar thing. Isn't that good though?

The only reference to collections in our seal is that the seller reserves the right to engage a collection service - we specifically avoided the details of sending letter, calls or credit reporting: for exactly the reason you mentioned. I think the details would be negative. Do you think our language is still negative and how might you change it, what would be a better thing to say?

I'd also add another analogy. I think that there is really only so much you can do against people that are out to intentionally screw-up an auction. These days, there is only so much you can do... But, I think that a high % of NPB's come from buyer's remorse or those not really thinkign an auction is serious or binding. Those are the ones I think we can do the most about and hope to through the seal. Anyway, back to the analogy (also a true story):

I recently bought a new piece of computer equipment. I bought it from the catalog of a well known merchant. I got the equipment, which wasn't too expensive, around $60, and after using it for a few days I thought, did I really need to spend $60 on this? I didn't particularly like the way it looked either. At that point I felt like returning it. I searched a bit online and I found it cheaper too. I was a bit frustrated. I looked at the merchant's return policy and saw that because of the time I'd had it or the fact that I'd opened it- I don't recall which- that if I returned it there would be a restocking fee. Even though I had some remorse about it, I kept it because of that. Getting out of the transaction wasn't worth the price.

While I realize that some things are different here, the elements of buyer's remorse and second thoughts (including seeing it cheaper) are key factors, I believe, in most unpaid items. I think our service addresses these to get transactions completed on eBay where otherwise someone might back out because:
He saw it cheaperHe had second thoughtsHe didn't know it was a serious transactionThere was no penalty, and if there was, a lack of enforcement for not completing the transaction
Your store analogy made me think of this when thinking through how our service does parallel other real world transactions. I think many, many merchants (at least it seems the ones I've been ordering from!) have restocking fees and means of enforcement.

I've never felt deterred by these fees or what not. When I go to buy something, I'm ready to buy it, so those policies only go to the back fo my mind.

What do you think?

beckysthisnthat · Joined: 02 Mar 2005 Posts: 1577 Location: Texas

I don't think I'd bid on an auction with that seal unless I already had done business with the seller and was happy with them. My impression would be that this seller had been ripped off many times and expected evry bidder to be the same way, so he's warning me before I've even had a chance to do business with him.

I try to be professional without losing my personal, friendly, I want you to be happy and come back impression. This seal strikes me as very angry. JMHO

nopaypal · Joined: 23 Feb 2006 Posts: 2008

Quote: › docWrite("quote")My impression would be that this seller had been ripped off many times and expected evry bidder to be the same way, so he's warning me before I've even had a chance to do business with him.
haha! and we can see LOTS of examples of that by reading some of the listings on ebay!

sad but true, it seems to happen to everyone at some point...

:?

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

Yes Beckysthisandthat... And that's all I'm saying too...

and not to suggest your company work backwards or dismiss all the hard work you obviously put behind your program and seal... but you know what service I would be interested in?

One that perhaps has a seal that says something to the degree of this seller being a trusted merchant with ReliaBid, etc and maybe a one-liner that says "mutual trust for fulfilling the contract" by both parties - I dunno, something to that affect.

But most importantly - I would be MOST interested in a company that's available when I need the service... not one that will collect a percentage (even if it is only 1/4 of 1%) of EVERY sale. I'm open to paying an even higher percentage to your company for GETTING my payment - using you as a one-off service.

Lastly - my sales altho multiple, typically fall in the $10 range... I have a non-paying bidder once a month or maybe even longer and paying you a small fraction of a percentage for every sale I have simply does not seem prudent.... it's kinda like buying cloud insurance - sure the clouds havn't attacked the ground people, but maybe they will tomorrow - and wont I be glad i bought all that cloud insurance.

Marty

jonathanr · Joined: 12 Jul 2006 Posts: 7

This is good feedback. Let me ask a few questions to be sure I understand it fully:

beckysthisnthat wrote (View Post): › docWrite("quote") This seal strikes me as very angry. JMHO
What is it that strikes you that way? Can you give me some specifics that we can think about changing?

AslanStore wrote (View Post): › docWrite("quote")
Lastly - my sales altho multiple, typically fall in the $10 range... I have a non-paying bidder once a month or maybe even longer and paying you a small fraction of a percentage for every sale I have simply does not seem prudent....

In this case, I would tend to agree with you. I am not sure that there would be financial justification. It really depends. If you sell ten $10 items per month, then you'd be doing $1200 / year and your fees would be $3. This would in turn get you an additional $120 in sales if we wiped out your unpaid items. So, you would, in this case be positive $117. That would make sense.
If you sell a hundred $10 items per month and still have only 1 NPB / mo, you still would only get $120 more in sales, but your fees would be $1000 * 12 = $12,000 * 0.0025 = $30 / year. This still nets you an additional $90.
However, if you were doing very high volume, and were doing 1000 transactions per month, then you would have annual sales of $120,000, with a fee of $300 / year. But, if you still had only 1 NPB per month, you'd still only get an additional $120, and at this point, you would be paying more than you received.
So, knowing these numbers, what is it that would not make sense if you sold 100 items per month (the second case)? You would still be up $90 a year and making more money. Is it that it is not enough more money?
I guess I ask this because when I ran my business, I thought about every cent and if I could make more money, even $20 more a year, I would go for it. But, that is me, and I need to know what others' perceptions are in this case. :)

Jon

jonathanr · Joined: 12 Jul 2006 Posts: 7

Also, I just was looking at the last post I made and thought I would add this:
First case: 1 NPB out of 10 items = 10% NPB rate
Second: 1 out of 100 = 1% NPB rate
Third: 1 out fo 1000 = 0.1% NPB rate

We are seeing and hearing from many sellers and new sources that the NPB rate is around 5%, on average.

http://news.com.com/2100-1017-961312.html offers a NPB rate of 10% average. Appears about halfway down, in paragraph starting "About six months ago..."

So, additional questions I'd ask are:
What is your NPB rate as a percent?
If it was 5% would it make sense to you?

Thanks! You all are so great for providing such great feedback to me- I'm just so happy to be in such a responsive and constructive forum! You all rock! :D :D

Jon

beckysthisnthat · Joined: 02 Mar 2005 Posts: 1577 Location: Texas

Quote: › docWrite("quote")
This seal strikes me as very angry. JMHO

Quote: › docWrite("quote")What is it that strikes you that way? Can you give me some specifics that we can think about changing?

It's just "in your face", to me. Fine print is very fine print with the rest of it giving the impression of WARNING! BID YOUR OWN RISK!

I don't like the lock and definitely don't like the DO NOT BID IF YOU DON"T INTEND TO PAY!

My interpretaion: I'm sick and tired of putting up items for sale and not getting paid. It's a waste of my time and if you bid and don't pay me, I'm gonna sic a collection agency on you to get my money. If you want to play games, go bid on somebody elese's items.

As a responsible buyer, I would immediately go look at feedback, if I don't hit the back button first, and see what FB that seller leaves for his buyers. It just tells me the seller is frustrated and expecting someone not to pay. Makes me wonder if the seller will be difficult to deal with if something goes wrong...like the item gets lost in the mail. Will the seller assume that I am lying? I probably wouldn't bid unless it was something I REALLY needed or wanted.

JMO