CUSTOMER SERVICE IN OUR NEW MARKETPLACE - THANKS TO EBAY

by Deb Weidenhamer

Ebay has unlocked many doors for traditional auctioneers it opened the world of Internet auctions, created a need for Ebay sellers to have product to sell on the Internet which brought a whole new group of buyers to traditional auctions. Most importantly, Ebay made the word "auction" a household word. The typical consumer knew of auctions prior to Ebay but had many misconceptions about traditional auctions and what we sell at our auctions. Ebay helped to educate consumers that were now purchasing at online auction about the benefits of the auction method of marketing and this education has produced many new attendees for our auctions.

Although Ebay has changed greatly over the past few years and those changes are not the focus of this column, one thing that has remained the same for Ebay is customer service. Ebay realized it was important to make the auction buyer and seller comfortable with their online transactions. So they created a feedback forum, which allowed both the buyer and seller to report on transactions and create an honor system based on the information. The use of the feedback forum became so successful that both buyers and sellers alike go out of their way to resolve disputes to avoid negative feedback.

If you have every bought or sold on Ebay you also know that the feedback forum can almost be used as a type of ransom to hold over a buyer’s or seller’s head. For example "if you don’t send me the power cord for this gizmo I purchased even though your ad said it wasn’t included, I am going to leave your bad feedback." Savvy Ebay users have learned how to effectively deal with such bullying tactics. However it does not take away from the beneficial system of a feedback forum.

The Ebay users that are now attending traditional auctions have come to expect the same sort of honor system within traditional auctions that was created by the feedback forum of Ebay. Our auction firms have sold for hundreds of years using the "as-is" clause or the caveat emptor warnings at our auctions. We are not set up to issue refunds or offer guarantees. But with the makeup of our changing buyers and sellers we need to revisit some of these old "wash our hands of the situation" sorry no refund policies.

First, Ebay educated their customers, so we need to do the same. It isn’t good enough to say that everything will be sold "as-is". We need to thoroughly explain what that means to a buyer. If we are selling electronics at an auction and we have not tested the item for working condition, we need to state such either in the description for the item or in our signed terms and conditions. There are auction firms that offer a three day trial guarantee. So if the item purchased doesn’t work when someone tests their purchase, they can return the item. But the auction firms that offer such a guarantee are often selling their own inventory and not that of consignors.

Second, we must take a softer and gentler approach with these new customers at our auction. Simply stating that the Uniform Commercial Code which is adopted by all states except of Louisiana allows us to sell "as-is" will not satisfy this group of auction buyers that have been indoctrinated by Ebay. If this is the policy of the auction house, then it needs to be announced in the opening introduction of the auction and the auctioneer needs to work the buyer beware warning into the auction chant. To treat these customers with disdain when they ask for a refund for their non-working purchase only means they will never return to the auction, consign to the auction and of course will tell all of their friends about their terrible experience with the traditional auction.

We must approach customer service with the three "A’s" creating "Triple A Customer Service". Attitude, Attention and Action. In order to understand how to put Triple A Customer Service to work, let’s create a scenario of a buyer who has purchased a home stereo, which appeared to be new in the box for $150. They have paid for their purchase with cash and have taken the stereo home, unpacked it and set-it-up using the instructions that were included in the box. The stereo does not work. They appear at your auction firm the next day to return the item and get a refund. The stereo was sold "as-is" as was every other item in the auction in question. So now we are going to use our Three "A’s".

Attitude – how we feel about the new auction consumer will gauge the outcome of the results of the dispute. We must first understand that the auction buyer is used to buying product that is either guaranteed or it is disclosed that the item does not work. We of course do not unpack boxed items and test them to see if they are in working condition or not. But we need to understand that this is a new concept for this buyer and that they are extremely leery of our "as-is" policy. In the new buyer’s mind the policy does not only not make any sense it seems unfair and underhanded, so we need to treat the buyer with an attitude of understanding and educate the buyer on the ways of auction with careful and elementary explanations that avoid being condescending. It is not the buyer’s fault for not understanding how a traditional auction works, it is our fault for not educating the buyer.

Attention – in order to properly resolve this situation, we are going to need to give this buyer some attention. This may mean sitting down with the buyer in a private office and spending time getting to understand the buyer’s frustration and level of understanding of the auction process. Attention also means listening to the buyer – we can’t just blow through the conversation. Their purchase could mean a great deal of money to their family’s bottom line for the month. We must listen to their concern about the product and try to put our own self in their position. Attention also means to give quick response to a complaint. The longer we allow someone to be upset with the purchase the harder it will be to achieve a peaceful outcome

.Action – now that we have the right attitude and have given the customer the attention they deserve we must take proper customer service action. This is the time for thoughtful company policies. For example in our firm we carefully explain our position of "as-is" and offer that in the auction industry this policy is what creates such super deals for buyers. We generally give them $20 in auction bucks that they can spend with us at another auction. We don’t offer a refund, and we don’t offer to take the merchandise in as a consignment to pawn off on another unsuspecting buyer. To make such an offer only makes the buyer even more leery of the process. We spend time making sure they understand the auction process and become a more educated buyer. Then we follow up with a personal invitation via the telephone to attend the next auction.

As you can clearly see nothing is very different about the fundamental outcome of this purchase, but the buyer will be back as a more educated and discriminating buyer. In effect they will leave positive feedback in your feedback forum.