ODR Platforms: eBay Resolution Center

The eBay Resolution Center revolves an incredible amount of over 60 million disputes per year, making it one of the biggest ODR systems in the world. One of the most valuable sides of this progress that has been made is the amount of cases that did not escalate to a level where a third party needed to render a decision. This extrajudicial process resulted in 90% of the cases never making it to court.

What the ODR tool does is resolve disputes in varying areas where problems can arise when buying or selling goods on eBay, for instance issues such as item payment, condition and receipt. The eBay Resolution Center is built around a model of problem diagnosis followed up by automated negotiation and ends with mediation and arbitration. This model helps buyers and sellers to communicate more efficiently about transaction issues. The underlying goal is letting buyers and sellers communicate first to solve the issue before escalating to a level where eBay has to step in.

On a more practical level the process is easily explained; when a buyer makes a case and lists the problem, the buyers receives the notification that a case is opened. The buyer has three days to respond, before the matter escalates to eBay. The ODR tool increases customer satisfaction, trust in transactions and saves time and money. The nature of the cases makes them excellent material for ODR; cross border, low value and high in volume.

The reason eBay is an effective and neutral party in offering this tool and deciding when it comes to a dispute is that eBay is uniquely positioned; it sells nothing nor holds inventory, making it eBay’s only job and interest to make sure the transaction between buyer and seller run smoothly. After the success of the eBay Resolution Center, Modria was founded with the underlying thought that many governments, ecommerce sites, courts and hospitals could benefit from an Online Dispute Resolutions Center. We are honored to share that Colin Rule, the man behind the eBay Resolution Center and co-founder and COO of Modria and co-founder Chittu Nagarajan, will join us at the 2016 ODR conference.

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