Dispute Resolution: A Discussion with Colin Rule,
eBay Dispute Resolution expert-in-chief
by Dave Steer
eBay's Senior Manager of Trust & Safety Marketing

Humans are inherently social creatures. We crave to interact with other people in our daily lives.

With more than 100 million members trading with each other, eBay can, in fact, seem like one of the most social places on the planet.

And while this type of social experience is what makes the eBay experience so special, there are times when people simply disagree – about a transaction, about a Feedback rating, or just about anything else.

There's nothing wrong with a dispute or two – after all, opinions - and differences of opinion - are part of what makes us truly human. However, just imagine a world where all of us are equipped to resolve our issues early…and in a way that enables both parties to be satisfied.

If there's anyone that has that vision each and every day, it is Colin Rule, eBay's Director of Dispute Resolution. For this month's column, I talked with Colin to learn about resolving disputes. Colin, literally, wrote the book on Dispute Resolution and is our resident expert-in-chief as we build dispute resolution functionality for the eBay marketplace.

Dave Steer : The Director of Dispute Resolution is an interesting role. What do you do and what is your background?

Colin Rule : On the little customs cards they make you fill out when you enter other countries I always refer to myself as a mediator. I've helped people resolve a couple hundred disputes in face-to-face mediations over the last ten years -- Everything from neighbor disputes (barking dogs) to roommate disputes (loud music) to small claims disputes (clothes ruined by dry cleaners). I've also helped to facilitate multiparty public disputes, such as conflicts over zoning, land use, and electricity regulations.

I started an online dispute resolution, or ODR, company back in 1999, wrote a book on ODR, and last year I got a call from eBay asking me to come out to San Jose to work on buyer-seller disputes.

Dave : What exactly is Issue Resolution? And why do you think it is important for the eBay marketplace?

Colin : Problems are inevitable. No matter how careful you are, eventually you'll encounter a problem in one of your transactions. Every marketplace must have a way for buyers and sellers to easily resolve the problems that crop up. eBay's job is to run a marketplace where buyers and sellers can trust that things will go smoothly. Issue resolution is a key component of that trust.

Dave : We see disputes in our everyday interactions, both in the eBay marketplace and in the brick and mortar world. Are there any key tenets to resolving disputes that you know can help all of us overcome issues? Or better yet, to resolving something before it becomes an issue?

Colin : On eBay, even though we deal with each other exclusively through the computer, we're still people on both sides. As much as we'd like for computers to erase all the complexity of dealing with each other, it will never happen. Many of the resolution tips I'd suggest are useful both on eBay and in the face-to-face world, such as:

• Address problems as quickly as you can. Often the original matter is small, but if left unaddressed it can escalate into something much bigger.

• Try to make a good first impression. I've found that on eBay the first communication often sets the tone for the whole interaction. It's hard to change a bad first impression online, because you can't use things like tone, facial expressions, and gestures to communicate your good intentions.

• Take a moment to establish rapport. When people talk on the phone they say hello and chat for a second before getting down to business. In email most people go straight to the substance, which can increase the risk of misunderstandings.

• Don't assume the other side understands eBay as well as you do. We have a lot of new users who haven't learned how eBay works. If you take a second to gently educate them as opposed to chastising them you may win a loyal customer.

Dave : Those are powerful pieces of advice, in general. Specifically for eBay members, what do you view as the biggest issues?

Colin : Well, some kinds of issues are very common but relatively simple to resolve, like unpaid items. Other kinds of issues are rarer but more complex, such as disputes over items that are different than the original item description. What's common to all transaction problems, regardless of its origin, is that having one is a frustrating experience.

Dave : Finally, do you see any common best practices for resolving trading disputes?

Colin : The members who seem to be most successful in resolving disputes quickly and effectively seem to embrace a couple of practices:

• Focus on the problem, not the person. Talk about the situation you want to resolve and potential solutions, not your assessment of your other side's character.

• Ultimatums and insults almost always backfire. Threatening a member with negative feedback or insulting them usually stiffens their resolve and makes them less accommodating and cooperative.

• Look for creative solutions. Think of win-win solutions where both you and your trading partner get what you're looking for. If the seller sells the item at a fair price and the buyer gets something they desire then everyone is happy.

• Keep your eye on the broader picture. Remember that this is just one transaction among many more to come. Sometimes the "winner" can really be a loser in terms of wasted time and negative feedback.

• Customer satisfaction is good business. Sometimes being accommodating to a buyer can be good for your business in the future. Bear in mind that your reputation is your most valuable asset.

Coming next month: The first annual eBay "Trading Sense" Quiz...