A short tale of what happened to a eBay user who used to make a ok living selling websites on eBay, basically what happened was Chinese sellers moved in, bid on his auctions abused the DSR (detailed seller rating) system giving him all 1 stars & negative feedback to drive him out of business, eBay was not interested in helping him, although it would be very easy for them to see what was happening.
eBay – I was a seller on eBay for years, sold websites. Was actually the seller that popularized the “Business Websites”. It was around 2001 when I decided to list a Real Estate website and it sold for around $500 so I tried a few more, ended up turning into a pretty lucrative business, at the peak selling 4-5 websites a night. Other people/businesses saw how lucrative it was and jumped in, no big deal competition is good.
When Meg Whitman became CEO eBay changed. The way sellers were rated was completely changed, sellers could only leave positive feedback for buyers (which opened the door for all kinds of scams on the sellers) they introduced the star rating system and changed the search for items from showing the items that were going to end next to “Best Match” which was just based on your star rating.
A lot of our competition was a few companies that appeared to be based out of china, they started making buyer accounts and buying any auction that was fairly cheap. Then they would leave 1 star down the board and negative feedback. I contacted eBay about it, I was in the top tier of “Powersellers” so I had a phone number to call etc. They literally told me to provide better customer service to the people leaving this false negative feedback. It only took about a month for my auctions to no longer appear at all in the search results unless you were on about page 5 when they had seconds left on them. I ended up crossing the threshold that eBay allows for negative/positive feedback and star ratings and they closed my account. That didn’t stop them from demanding I pay the $2k in auction fees for all the auctions they had just ended. I refused to pay, myself and my immediate family are banned from eBay for life as a result.