In this last part of the webinar on eAuction notifications, Chris Reddick (President and CEO at Clarity Ventures) and Ron Halversen (Vice-President of Sales and Marketing at Clarity) discuss the best way to help buyers and sellers resolve problems.

Part 4 of a 4-part series (Return to Part 3)

RON: All right. So now the very last thing is the rating, right? And I just mentioned it about that eBay item, but ensuring the customer satisfied. And one of the most important reasons is not because I want to make sure they're happy with their transaction, although I do. If they are satisfied, then the seller's probably going to come back and sell more stuff and that buyer's probably going to come back and buy more stuff. 

And if my business is taking a small percentage—a small selling and buying commission of items—then the more people come back exponentially late. Obviously, my profit goes up. So literally, for the eCommerce auction house, the most important thing is ensuring the both the buyer and the seller are happy.  

So let's go ahead and dive in and talk about returns, because that one's a big one, right? 

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CHRIS: This whole B2B eAuction platform is based around credibility and serving, like you said, the buyers and the sellers. And what is it that we can do to really optimally serve? Well, we can put mechanisms in place that guide them and direct them, and kind of say like, "Hey, if you make this choice, this is probably going to be the outcome.” 

This is really important whenever it comes to refunds and returns, because this can be sort of an ethical thing for the seller and the buyer. So you want to put yourself in their shoes and engage with experts who have been working in this field long enough to understand some of the dynamics and the realities. Fundamentally, what we're dealing with is laying out the lanes are to stay in, and showing both the sellers and the buyers what is okay and what isn't okay. 

You would be surprised at how much just basic clarification and basic guidance and basic enforcement really makes a difference. It's an exponential payoff, especially in this area. Generally speaking, whenever there are refunds or returns, we want to default to a over-focused client satisfaction, the customer is very happy. This can be make or break for the whole credibility of the online eCommerce auction platform

As far as notifications are concerned, we can fully automate this process essentially. This is a very standard part of this industry overall. So you can take advantage of best practices from platforms that are literally a hundred or a thousand times bigger as far as revenue going through their system, and employ those within your system. 

CHRIS: This is going to include things like being able to provide an easy access for the buyer to notify both the platform and the seller if there is an issue. Being able to select from a very discrete, specific list of options that really go into all the potential scenarios that could have occurred. And we want to make sure that's a complete list for your industry and really think through all the different scenarios.  

Next, have a workflow for eAuction software—and there's a difference between a damaged item versus the wrong item was sent. I mean, those are very different situations. We have a pretty major problem on our hands if the seller doesn't resolve a wrong item sent. I mean, that's a pretty major issue, right? And so there should be consequences for the seller on your online auction system.  

Similarly speaking, if an item was damaged in shipment, that's a very different issue too, because it's possibly not the seller doing anything wrong. But unfortunately, the buyer is not getting what they need. So there are a lot of other types of auctions with their own situations. Maybe the seller wasn't responding quickly enough, and so the buyer had to go with a different option. And that can be really frustrating as a seller. But, that's why we have all this communication talking about what the guidelines are. 

CHRIS: We want to have governance in place in the enterprise auction bidding software that can handle this so that, whenever the buyer says, "Gosh, I have an event that I have to have this item for in a week, and if I don't have it by then, I'm going to have to go buy it for twice as much. I'm going to be frustrated, but I've got to have it, it's non-negotiable.” And if the seller doesn't respond quickly enough and fulfill the item on time, what is the buyer supposed to do? These are the kind of things that we can mostly automate through the platform.  

The other thing is we do need to be able to have a safety release valve. If needed, we can inject a direct override, or even direct human interaction. And this is really helpful as well, so that your internal team is receiving notifications too. So you can essentially take advantage of the notifications to improve customer satisfaction with the platform. And whenever it gets to a point—and this will happen occasionally—where the automation just doesn't really encompass the specific scenario, then it makes perfect sense to inject someone manually from a customer support perspective to be able to address that issue. 

 

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RON: Yeah, that's true. We talked about governance on another one, but that is really an important one here in an eCommerce auction. Especially when you're buying something used, right? I remember watching a show the other day and a guy was redoing a ‘69 Camaro, and the guy bought it on auction. It was a ‘69 and had a 502 big block in it. And when it got to the shop, he said it wasn't running right and they went in, looked at the engine, and when they started running serial numbers, the seller had lied. It was an old 454 from the seventies that they had slept a new intake manifold and some 502 valve covers on it and some nice headers on it. 

And since the pictures are a few feet away and they weren't showing the exact serial numbers, now the guy had already put new wheels and tires on it, he'd done some work. So trying to get a refund now is completely weird. And he's had the car for a month or two and he couldn't figure out what was wrong with it until then. So now all of a sudden he figured out he got taken months after the transaction happened on the eAuction platform.  

So how you know governance of that kind of stuff, you have to really be careful. You have to figure out and help and guide the people on what is an as-is auction and all sales are final.0 And if the seller did actually lie, though, what is the repercussion, or how and where can I inject arbitrations and mediation, and where can I inject my own third-party inspection? And are there certificates?  

Sometimes some of those things just can't be done. It can be as-is, but the pictures I took of the car were six months ago and it started developing rust. So I went ahead and sold it on the eCommerce auction platform, but the only pictures I had were six months old. So all of a sudden the car shows up, and the pictures didn't have rust, but the car shows up with rust. And so now there's a discrepancy. But the governance says everything is as-is. 

How do you address that? Well, maybe the only thing you have left is our very last bullet here: the notifications. I'm rating the seller. So now when I go in and rate that seller and give them one star and say, "The picture of the quarter panel showed no rust whatsoever. Then the car showed up and it has rust, and here's a picture of it,” and you leave that rating.  

Well, the karma kind of works itself out at that point, right? More than one or two bad reviews, and that seller’s either 1) nobody wants to do business with them or. 2) you as the platform owner of the eCommerce auction system could then ban them for those types of things. We hear about the Tik-Tok bans all the time. “My account got banned from Facebook and blah, blah, blah.” You hear about these things. Well, that is the people coming in and enforcing their rules of governance because somebody quote-unquote violated the guidelines, which is typically the term you always hear. 

You have to have those well in place. And sometimes the eAuction ratings really are the only recourse, at the tail end, that have some teeth. Because those teeth can hurt. They bite both ways. 

CHRIS: That's right. And speaking of ratings, we really appreciate everyone watching this webinar. We've got an awesome one coming up next week. If you would smash the Like button, hit Subscribe. We'll have more of these on the way. And I just want to say thanks again, Ron. This has been a fun one and I'll look forward to the next one. 

RON: Sounds good. Thanks, everyone. Cheers. 

CHRIS: Cheers. Bye for now. 

 

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