eBay Feedback

Howard Rheingold's point in Smart Mobs about how eBay's feedback system works is very true today, as it was in 2002 when this book was published. He uses Paul Resnick's three points about how a "reputation system" works to show why eBay's system works: buyer's and seller's identities are long-lived, feedback is visible to others (potential buyers and sellers) in the futur and that people pay attention to the ratings. Rheingold believes that part of why the system actually works is because people have faith in it and trust what it shows.

I've worked for an eBay business, PeriodPaper, for several years and the owner and all the employees are very proud that with over 4000 unique feedback left, zero have been negative. To Troy Ylitalo, the president of PeriodPaper, his business' online reputation is everything. He values customer service above all else and really goes out of his way to treat his customers with great respect. This is evident in every aspect of his business, even down to the packaging he uses to ship products out. This care and attention to the customers' needs are apparent in his feedback rating. And, because of his high online eBay reputation level, PeriodPaper is able to draw in new customers at a very high rate (4000 feedback represent unique users and there are nearly 5900 total feedback received--the higher number includes repeat and multiple-item buyers).