International BBB Ratings a La Ebay: A Proposal for an Improved Online Better Business Bureau to Facilitate International Business Transactions

Abstract

With an internet-based platform to transparently report global business-to-business (B2B) dealings, companies could freely invest and transact. Part I also explores eBay's secrets of success, complete with a detailed examination of its feedback and rating systems to find what tools can be gleaned for use in a B2B context. Part II deals with the Contracts for the International Sale of Goods (CISG) as the United Nation's default adjudicative recourse for international B2B disputes. Costly due diligence should be replaced or complemented with a reputation-based online transaction reporting system, complete with tools modeled in part by those designed by eBay, Alibaba, Worldbid and the BBB. Not only does eBay allow one to know how experienced their business partner is, it also gives a detailed look at the little black book notes about this party from the party's prior business partners. Unfortunately, eBay lacks the ability to sort by seller rating. This open bank of transaction history will prove to be a powerful comparison tool in the hands of a potential international B2B partner and will keep many out of the courts. Finally, overall suggestions for the platforms include retaining traditional due diligence as a complement to online research, lower transaction fees for active feedback participants, feedback weighted by rating, and double-blind feedback requirements.

Keywords: eBay, Alibaba, BBB, reputation, ADR, dun and bradstreet, hoovers, ODR, alternative dispute resolution, online dispute resolution, due diligence, CISG

JEL Classification: D74,D44,D18,A00,A2,F00,F13,H3,K12,K33,K41,K42,M31