Colin Rule: From eBay Conflicts to Global Peace Initiatives

As director of Online Dispute Resolution for eBay and PayPal from 2003 to 2011, Colin Rule has seen many changes and challenges in the conflict resolution space. He is now CEO of the new online problem resolution company, Modria Inc. We asked Rule about his time at eBay, what he thought about some of eBay's recent changes, and what's in store for his new company, an


d the future of dispute resolution.

 

AuctionBytes: What did you learn in resolving disputes on eBay for the last seven years?

Colin Rule: I learned a couple interesting lessons I didn't know before coming to eBay. First, buyers trade off convenience and outcome. We discovered buyers would rather lose a dispute quickly, say within a week, than win a dispute and have it take a month. The added headache of worrying about the matter is more painful to them than the injustice over losing $50-$75.

Second, disputes are an incredible loyalty opportunity. We compared hundreds of thousands of user accounts and discovered that users who filed disputes used PayPal more after the dispute than users who never filed a dispute in the first place. And that was regardless of outcome - even users who lost their dispute were more loyal.

 

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Great article showing an interesting perspective of eBay, which really had an impact on the consumer marketplace. In some respects, is it easier to report a dispute when you are involved in an online transaction? There is a veil of anonymity that "protects" you from having to deal with the other's emotions. In my mind, I can see how that would increase the number of consumers willing to lodge a complaint. 

 

I also liked how he shifted his focus to the items not received and items not as described. Those do seem more "serious" since the buyer is out the money. It shows a concern for customer satisfaction that no doubt helps create further business for eBay.

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