We nd that, when a seller rst receives negative feedback, his weekly sales growth rate drops from a positive 5% to a negative 8%. Moreover, subsequent negative feedback ratings arrive 25% more rapidly than the rst one and don't have nearly as much impact as the rst one. We also nd that a seller is more likely to exit the lower his reputation is; and that, just before exiting, sellers receive more negative feedback than their lifetime average.3 In sum, our data clearly suggests that reputation matters: buyers react to information about seller reputation; and sellers' actions, too, are in uenced by reputation considerations