eBay Moves Away From Neutral Position

eBay has recently made a decision to take an active stand against fraudulent sellers of high-demand goods this holiday season.  eBay has decided that they will take actions to reduce fraud in auctions of PlayStation 3 and Wii gaming systems set to take off later this month.  With the launch of these two hot gaming systems during the second week of November, eBay has posted restrictions on who can sell these items.  EBay is asking sellers to prove that they have the actual items before being permitted to list the products on the auction platform.  Sellers must have a feedback rating of over 50 (98% positive) and may only list one of each console as pre-sales before the items are released.   Other requirements as outlined by eBay include:

• The seller must only accept payment through PayPal
• The pre-sale item must be listed in the 3, 5, 7 or 10-day formats, and cannot use Buy It Now.
• The listing must include a photo of your pre-order receipt in the description.

If eBay is willing to essentially monitor and restrict those who can list these items, is this a course that they are willing to take for other high fraud categories?  Many sellers would be interested in seeing similar restrictions placed on items where counterfeit goods flood the market, such as high-end designer name clothing and accessories. 

However, if eBay was to start requiring this type of confirmation of authenticity prior to a listing being permitted, there may be as many negative ramifications as positive.  For instance, although the move would help to weed out the marketplace of fake goods, the red tape it would create might further hinder sellers from growing their businesses most effectively.

Comments

[Online auctions]

I am totally glad that eBay is taking serious steps to stop fraud. Good Job!