Hi All:
Welcome to today’s workshop on minimizing unpaid items. We know that unpaid items are frustrating and expensive for sellers. My team and I are here to discuss the latest methods sellers can use to minimize unpaid items.

We have done a lot over the past year to help reduce unpaid items in the marketplace. Last year we introduced the Unpaid Item Process and began setting Buyer Activity Limits in order to better ensure responsible bidding in the marketplace. We also overhauled the Bid/BIN confirmation page to clarify the commitment point and highlight shipping costs and payment methods the seller accepts.

This week we expanded the functionality of Buyer Requirements to make it possible for sellers to select the number of their items that a particular buyer can bid on in a 10-day period. The seller is also asked to specify the Feedback level of the buyers on which they want to impose this item limit.

We are holding this workshop in order to share our 2005 plans to help sellers minimize unpaid items, review the enhancements to Buyer Requirements, answer your questions and hear your suggestions of how we can improve in this area.

We’ll start out this session with our top Frequently Asked Questions on our unpaid item initiatives, and then open up the floor for questions.

-Matt (Trust & Safety)

As a refresher, what is the Unpaid Item Process?

If the buyer does not pay for the items he/she has won, a seller can initiate the Unpaid Item Process. The Unpaid Item Process is an online process through which the buyer and seller can communicate with each other to resolve the situation. Typically there are several steps to the process:

1) Seller files an unpaid item dispute or initiates a Mutual Agreement Not to Proceed
2) eBay contacts the buyer on behalf of the seller
3) Either the buyer responds and communication ensues or the buyer doesn’t respond in 7-days and the seller is eligible to close the dispute
4) The dispute is closed

The seller can close the dispute after the buyer has responded at least once, or if the buyer does not respond within 7 days. If the buyer does not pay for the item then eBay will refund the seller’s Final Value Fee credits, the item may be re-listed and eBay will refund the Insertion Fee if the item successfully resells. In addition, the buyer will receive a strike on their account. Please note: if a buyer gets too many strikes in too short a time period, their account will be suspended indefinitely.

Is there any way we can penalize unpaying bidders without leaving negative feedback?

What are eBay’s plans for addressing unpaid items in 2005?

After launching several UPI initiatives in the 2nd half of 2004 and the first quarter of this year, eBay is monitoring their impact closely. In fact, in December US Unpaid Item rates declined 16% from December a year earlier. Here’s some of what we have planned for 2005:

• Buyer Requirements - Depending on seller adoption of Buyer Requirements – we may want to introduce additional ways for sellers to block risky buyers. Please let us know if you like this feature and if there are other variables you would like to be able to control.

• Buying Limits and Remedies – Our first launch of Buyer Activity Limits is already having a good impact on reducing Unpaid Items. We are watching both the impact on UPI rates and “good bidding”. We anticipate launching even more sophisticated limits later this year.

• UPI Process – We have recently analyzed the usage of the new UPI process and are encouraged by much of what we see (e.g. 92% of all disputes sellers file as mutual agreement are accepted by the buyer). On the other hand, we think we can improve the language of some of our messages (e.g. returns). We plan to update much of the text during 2005.

• Feedback – We are currently evaluating our entire feedback system including feedback in the case of Unpaid Items. We may propose modifying some of our policies around feedback later this year.

Hi, how many times do you recommend re-sending invoices to bidders who have not got in contact and what is considered a reasonable time span between re-sending them?

What else can sellers do to reduce the likelihood of unpaid items?

Ensuring that buyers pay for their items is the most critical component of a successful transaction for any seller. There are several steps that sellers can take to reduce the likelihood of having an unpaid item. Here are a few:

1. Offer eBay Checkout
Consumers that encounter surprises are less likely to pay for the item. eBay Checkout provides a streamlined experience for buyers to complete their transactions. If you use a third party service provider to manage your listings, eBay now offers Third Party Checkout Redirect, a new tool that puts the ‘Pay Now’ button in the listing.

2. Offer PayPal
Items that do not accept PayPal have a 50% higher rate on average of unpaid items. In fact, three out of four buyers prefer PayPal because they view it as an easy, quick and safe way to pay.

3. Include Shipping Costs in the Shipping Details Section of Sell Your Item
Buyers don’t always consider shipping costs when deciding to purchase. Be a savvy seller: include the shipping and handling details at the outset to avoid surprises. Not doing so increases the likelihood of an unpaid item by 20%.

4. List with Immediate Payment on Buy It Now items
The Immediate Payment option for Buy It Now listings is the best ways to reduce unpaid items because the listing remains available for other buyers until the seller is paid.

5. Use Buyer Requirements

Now that we have completed the top Frequently Asked Questions portion of this workshop, are there any questions or comments?