I had an opportunity to sit down with Marc Gorlin from startup Kabbage.com at the eCommerce Summit 2010 in Las Vegas this past week. While I am sometimes hesitant to endorse startups simply due to their inherent failure rate, I believe this dot com is going to be BIG!

The entire Kabbage.com team was in attendance at eCommerce Summit 2010 in Las Vegas and I got to meet them all. When I talked with Marc, it was apparent that this is a well thought out operation.

What is Kabbage.com

Kabbage.com quite simply is a lending site for small to medium sized ecommerce businesses that need short term cash for whatever the reason. Purchasing inventory, equipment or whatever to allow businesses to take the next step to growth. Typically these small to medium sized ecommerce businesses find it difficult to obtain funding from conventional lending institutions, and Kabbage intends to fill this void.

Initially, the service will be available only to eBay sellers, but Marc explained that Kabbage does intend to expand to allow sellers on other venues in the future. Still a few weeks away from actual operation, Kabbage will look at the more than just credit scores of the applicants. Gorlin explained that along with credit scores, Kabbage will also look at the sellers experience, feedback ratings, and PayPal volume history to determine eligibility for loans. The loans that Kabbage offers typically range from 1 to 6 months in duration.

Gorlin explained that the application process is all done online, and normally a decision is made, and funds available in the applicant’s PayPal account within 10 minutes! This totally blew me away!

While certainly not for everybody, I believe Kabbage has hit upon a niche that potentially can help those that need short term loans to expand their businesses take that next step.

Disclosure: Kabbage.com was a partial sponsor of our podcasts at eCommerce Summit 2010.

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June 3-4, 2009

SMB’s are constantly looking for useful information and networking opportunities to improve and increase their businesses, and Ecommerce Merchants Trade Association (ECMTA) and their sister organization Professional eBay Sellers Alliance (PeSA) have teamed up to create just such an event. The two day event scheduled for June 3-4 2009 at the Atlanta Airport Marriott will feature some of the largest and most influencial businesses and experts in the internet marketing world.

From Amazon and Buy.com to eBay and Yahoo, some of the largest ecommerce marketplaces will be represented as will many ecommerce platform providers such as Channeladvisor, Infopia, Vendio and more. The current agenda show 22 sessions in the two day event. All sessions are single sessions so attendees will not have to choose between concurrent programs.

This type of agenda provides ample time for attendees to network as well as gain useful information from the presenters. Having covered last years event in New Orleans, the content and opportunity for individual “face time” with ecommerce leaders and executives was much appreciated and utilized by the attendees.

ebay & Beyond: Basics To Business will again be broadcasting live from the event for what looks like 8 hours each day (maybe more)! Log onto www.basicstobusiness.com and click on the Talkshoe player on the top of the page to hear us live and check out our live video streaming from the Summit at http://www.justin.tv/ebayandbeyond.

Special thanks to Netspray.com for sponsoring our broadcasts from the Summit.

PS. There is still time to register at the EXTREMELY low price of $99.00!

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In a press release posted by BusinessWire.com this move was taken to better the customer experience of both buyers and sellers as eBay rolls out new service programs (eBay recently announced it would be taking over dispute resolution services from it’s PayPal company).

At the time I am writing this post, there is no posting of this announcement on either the eBay.com or eBay.ca announcement boards. Stay tuned for more details as they become available.

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Do you read the fine print? Most of us don’t.

In today’s economy internet sellers need to take advantage of tools and services that can enhance their business. One of the most important of these services is the ability to accept payment for our goods or the services we offer for sale. In the early days of ecommerce, payment by cash, check or Money Orders was the norm for most online businesses. Some had their own merchant accounts, but these were in the minority. Along came services like BillPoint, PayPal, Revolution Money Exchange and Google Checkout.

The growth in the online payment systems market grew dramatically as more and more online businesses sprouted. Sites such as Amazon, eBay and Google played a huge role in creating the growth of these online payment services. Eventually all three of these ecommerce giants created their own payment systems, seeing the income potential in ecommerce.

Not Necessarily A Business Owners Friend

With the creation of online payment services, small to medium sized business owners were anxious to take advantage of the ability to accept credit/debit card and electronic funds transfers as forms of payment, and did this in huge numbers. Now, in a trouble economy, many of these businesses are finding out that they may have blindly agreed to terms that can potentially put their business at huge risks.

Researching the payment systems I am most familiar with, Amazon, Google Checkout and PayPal, I find one huge universal similarity. We as business owners are at THEIR mercy! They are not in business to make friends with us, these services are in business to make money and limit their exposure at OUR expense. We are allowed to use these serices to enable purchases to be made at their sole discretion. At any time they can shut us down, withhold our monies, and deduct funds from our credit/bank accounts for any reason at any time.

For small to medium sized businesses this can effectively cause immediate and devastating consequences. The inability to pay for products or services, postage and other related business expenses because accounts have been frozen WITHOUT prior notice can cause an immediate collapse. Imagine, waking up and finding an email in your inbox telling you your account is frozen and you have NO recourse. We have all heard the horror stories. This is not isolated.

5 seemingly simple words

We at our sole discretion

Remember it is important to read the fine print. We may still need to use these services, but we need to know the consequences associated with depending on them!

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DSR’s Major Discussion Point

eBay conducted their Town Hall Meeting yesterday and again restricted the content. This year eBay is deciding what can be discussed by callers and emailers during the Town Hall events which obviously is meant to control the direction the meetings take. eBay has also decided not to announce these meeting until 24 hours beforehand. One listener to our program noted that the WSRadio website which produces the Town Hall meetings did not even have it listed in their scheduled programming.

High Points

• There will now be 2 buckets of major changes per year. (Using the term bucket indicates to me that there will be MULTIPLE changes as eBay needs a bucket to bring them to the users)  This does not limit eBay from making additional changes at any time. Changes or improvements as eBay calls them, will be announced at least 60 days prior to enactment.
• There will be major announcements made in March, (the first bucket) though no clue as to when or what.
• There is some glimmer of at least one change and that pertains to DSR’s which was a major discussion point during the meeting. This change is reportedly going to include some customizable reports that sellers can use and or create on their DSR’s. Why eBay will not disclose exact DSR ratings on each transaction still remains a mystery to me. Since eBay has removed the seller’s ability to leave honest feedback for buyers, there is no risk of feedback retaliation. Brian Burke stated that the vast majority of DSR’s being left were 5’s, then 4’s, then 1’s and 2’s.
• Brian Burke told one caller that eBay users should take what is being posted on the eBay Community Chat boards with a “grain of sa;t”. Brian later tried to qualify his remark but I have to believe there will be significant rancor from those on the boards.
• Several emails and calls concerned the recent changes to the format and layout of the previously unannounced PayPal emails.
• The next Town Hall meeting will be in April. I feel this is due to the announcements being made in March, and eBay’s reluctance to be immediately confronted on those changes.
• The much awaited shopping cart that sellers have been asking for probably will not happen until late 2009 or 2010.

No Real Substance

In my opinion these Town Hall meetings have failed to provide any substanative information for some time. I feel that it would be advantageous for eBay to consider abandoning these meetings unless they are willing to open them to spontaneous questions and provide solid useful information.

Auctionbytes noted that it takes eBay an unusually long time to upload the audio archives and has not posted transcripts of the events since last September. Apparently John Donahoe does not feel it necessary or cost effective for eBay users be able to read what was said.

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Back in July of 2002 eBay realized that it’s Billpoint online payment systen was not nor was it ever going to compete with PayPal. So as is eBay’s normal mode of eliminating competition, they bought it. While eBay was in desperate need of a viable online payment system, and many of it’s users (including this author) applauded the move in it’s infancy, eBay, in it’s inimitable fashion began grooming the payment platform to become a member of the 800 lb. gorilla family by instituting policies that benefitted and protected PayPal from any significant financial exposure, shifting the burdens of business on the sellers.

Since that time there have been tens of thousands of complaints and horror stories about PayPal and the way it has frustrated, damged and in many cases devastated the financial stability of individual and business sellers alike. PayPal and it’s parent company eBay have unilaterally instituted policies and rules that adversely affect how sellers can accept payment, how much sellers can sell, what sellers can sell and how sellers deal with unhappy buyers who use PayPal as a payment system.

eBay and PayPal determine what items sold are considered high risk for fraud, requiring some sellers to ship items to buyers prior to crediting the sellers accounts. PayPal may hold these payments in some cases for up to 21 days. If sellers suddenly increase their sales volume, this raises a red flag and PayPal can freeze accounts pending review. Sellers have no immediate recourse, and all the while PayPal is making money on the float of these funds.

It is important to note that PayPal is not governed by federal regulations, but rather by state Money Transmitter type laws in approximately 42 states. While I am normally not in favor of government intervention or regulation, it is clear to me that there needs to be some way to cage this rogue 800 lb gorilla.

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eBay has been focusing it’s attention on improving the buyer experience for the past few years implementing changes on the site that placed significant burdens and restrictions on sellers on the site. One of my many soapboxes has been that eBay has long felt that the buyers on the site are their customers, while I believe the sellers are eBay’s real customers as they pay the fees, but that is not what this post is all about.

eBay has long professed that ultimately the buyer is always right. No matter what. I have heard this time and time again on the eBay Radio program. Jim Griffith, host of the program, my former mentor at eBay University, and perenial eBay cheerleader has repeated nearly every week.

So Do As We Say, Not As We Do!

Recently I received an email notice from eBay telling me that my seller fees where overdue. Hmm, that is strange, so I checked my PayPal account and sure enough the debit card on file had expired. Not so unusual, that happens every couple of years. I looked in my wallet, and guess what,, no new card. So I called the bank and was told that they would cancel the card that had been mailed, and mail me a new card.

A couple of days later, I get a gentle reminder from eBay about my account being overdue. To avoid the inevitable suspension from eBay for a $149.00 bill, I made a one time payment through PayPal with the funds coming from my checking account. On December 2, I checked my PayPal account, the payment had been processed and I then checked My eBay and sure enough there is the payment and I am again in the good graces of eBay. Oh happy days!

December 12 I receive an email notice that eBay has again submitted an automatic payment request through PayPal for the bill, which had been paid 10 days ago! So I call eBay Customer Support. Now this is an improvement because unless you are a PowerSeller, there previously had not been any way to call eBay. Ok, enough of the niceties.

The C/S rep tells me she sees the second payment on my account and will submit a refund request through PayPal. I am told to watch my PayPal account as she would submit the request immediately.

24 hours elapses with no refund. Ok, I’ll call again to check on this. The second call to C/S and the woman tells me the first C/S was had in fact submitted the request, but that it must be approved by a supervisor and there are no supervisors available. In addition she informs me that my refund may take up to 5 Business Days to appear in my PayPal account. She additionally informs me that the first C/S was mistaken when she told me it would be handled immediately.

Well I am not happy with the latest answer, but am polite (really I am) and say thank you. I ponder on this for 2 more days, and my dissatisfaction level increases as time goes on. So, on Tuesday, I call again fully intending to speak with a C/S supervisor. Instead my call is answered by Andrew. Andrew takes my information, looks up my account and proceeds to inform me that the entire situation is MY FAULT for making a one time payment. He continues to tell me that BOTH of the previous C/S reps were wrong because my refund will take 30 days!

Now I am furious! I made the payment because I did not want the wrath of eBay to befall me. I owed them the money, so I paid them. I calmly inform Andrew that my displeasure is not directed at him, and thank him for his time.

So 600+ words into this, here is my point!

eBay, if I as a seller treated my paying customer like this I would be suspended or permanently banned from eBay! What happened to the customer is ALWAYS RIGHT! What happened to a great customer experience?

eBay I AM YOUR CUSTOMER! REFUND MY MONEY THAT YOU INCORRECTLY BILLED ME FOR TWICE!

With all the computer power you have, you can certainly determine that payment has been received 10 days before you take it out AGAIN!

Oh yeah, in the meantime my new card arrived and you can bet I am not putting it back up as a funding source until I am satisfied!

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It seems that several users are reporting difficulty logging into PayPal when they (the users) have a VeriSign Indentity Security Key attached to their account. This was first reported by AuctionBytes, but I learned about it first hand this morning when I attempted to access my PayPal account.

After I attempted to log in as normal using my PayPal/VeriSign security key, I was taken to a window asking me to re-enter the randomly generated 6 digit number again. I did this and was taken to a window asking me to enter two security key numbers, having to wait 30 seconds to add the second number. After doing this, I was taken to a window telling me that PayPal could not verify the numbers and asking me to identify myself answering my security questions or my PayPal debit card number. Finally I was able to access my account.

While in and of itself this is just an aggravating glitch, it begs the question: Where is the stability in the system? PayPal has been experiencing several “glitches” over the past few months including problems with customers being able to access their funds, witholding payments incorrectly and other site issues. It seems that PayPal is notoriously MUM about these recurring issues as I have checked the eBay PayPal Discussion Board, the eBay System Announcement Board, the PayPal Blog and the PayPal Announcement Board and see nothing mentioned about this latest problem. NOTHING in 12 hours!

I don’t know how many PayPal users have incorporated the VeriSign Identity Protection Key into their account, whether it’s 100 or 100,000, the transparency that was mentioned on the eBayInk Blog was short lived.

Too bad, I really did have hope!

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