eBay's Mistake and What Management Can Learn

by Lance Haun on July 20, 2006

eBay, the internet auction powerhouse, sent out a huge message about changes to their fee schedule for the store inventory format. You wouldn’t know it though because it takes up about a page worth of explanation and rationale before actually getting to the meat of the e-mail (i.e. the pricing changes). So I started scanning the e-mail and kept reading and wondering what it was all about. When the CEO attaches his name to a change with a vague title like “Resetting the balance of the eBay marketplace” and it isn’t clear what he is writing about after reading for 30 seconds, it doesn’t bode well that the message will be understood. To add insult to injury, they sent out another message announcing a sale for the next two days (probably to smooth the waters). I am shaking my head but I’ve seen managers use similar tactics to communicate and smooth over policy changes. Here are four things that eBay could have done to make their message better:

1.) Relevant title to the e-mail. Make it clear what the e-mail is about. This e-mail wasn’t about resetting the balance to the people that were receiving it, it was about fee changes to store inventory listings. The audience are employees, not upper management.

2.) Announce the change and details at the beginning of the of the e-mail. If you are going to intro it, make it brief (three sentences max). Announce the change in a concise and brief manner.

3.) Offer an explanation afterward to those who seek the information. Be brief, don’t be defensive of your decision and offer sound, practical explanations for the necessity for change.

4.) Don’t bribe them to accept it. Not only does it set a bad precedent, it seems non-genuine. The best thing a leader can do is spend time talking to the employees about the decision. Nothing more.

Managers can take note: the tactic used by Bill Cobb was entirely ineffective at meeting its goal unless his goal was to communicate ineffectively.


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{ 4 comments… read them below or add one }

Colin Kingsbury July 20, 2006 at 6:00 pm

“Unless his goal was to communicate ineffectively.”

Well, their plan is to raise fees by close to 50%. Is there any upside? Most eBay merchants have little choice to go elsewhere; they are peasants and Bill Cobb is the Tsar. So the goal may well be to pickle-barrel the thing in hopes that a large proportion of people don’t pay too much attention to it. Communicating a positive message first requires that there be a positive message to communicate, even if it’s a stretch.

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Your HR Guy July 20, 2006 at 6:05 pm

So I don’t know why they spend so much time trying to justify the change on the front end. If BCobb thinks this is a good idea, he should just come out and say it: Store Inventory listings cost more than we priced them. We are now adjusting our pricing acoordingly. Here it is. Here are the supporting statistics.

It doesn’t seem like great leadership. And granted there are no other places to go now, who says this doesn’t touch off someone else to start something new? They might have done it anyway but at least you don’t look like a poor leader.

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Zip Kilowatt July 24, 2006 at 10:33 pm

“Managers can take note: the tactic used by Bill Cobb was entirely ineffective at meeting it’s goals. Unless his goal was to communicate ineffectively.”

I know the blogosphere isn’t about highly manicured copy, but could you lose the inappropriate apostrophe in the possessive form of “it”? While I’m at it, you probably want to either substitute “eBay” for “Bill Cobb” or “his” for “it’s.” And why the plural “goals” in the first sentence and the singular “goal” in the second?

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Your HR Guy July 25, 2006 at 10:33 am

Thanks Zip.

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