eBay bans auctions of digital downloads
Online auction site eBay is changing its policy on digital items that are delivered electronically. Instead of selling these items via auction, eBay now requires sellers to take out 30-day classified ads for $9.95 to sell digital goods. The change is intended to prevent sellers from artificially boosting their feedback ratings by selling thousands of identical downloads for as little as pennies. There's no feedback involved in the classifieds section, but classified ads will show up in a regular eBay search.
The inherent problem with digital downloads is that there are pretty much no delivery costs, and once you produce an item you can sell it over and over again, which gives sellers the ability to game the system. Of course, we know a few record company execs that don't see things that way. And to be perfectly honest, we're not convinced the classifieds section is the right place for digital goods, because while we don't want to see anyone beating the feedback system into submission, if you legitimately sell items that have value on a regular basis, it would be nice to get some positive feedback for your efforts.
Users can still sell digital goods in traditional auctions -- as long as they provide physical media which requires shipping. If you've got software on a CD or DVD for sale, that's fine. Just don't offer buyers the option of digital downloads or you'll be in violation of eBay's new terms of service. That said, when we checked this morning, there were plenty of auctions still available for digital downloads. It'll probably take eBay a while to clean house.
[via Techdirt]
The inherent problem with digital downloads is that there are pretty much no delivery costs, and once you produce an item you can sell it over and over again, which gives sellers the ability to game the system. Of course, we know a few record company execs that don't see things that way. And to be perfectly honest, we're not convinced the classifieds section is the right place for digital goods, because while we don't want to see anyone beating the feedback system into submission, if you legitimately sell items that have value on a regular basis, it would be nice to get some positive feedback for your efforts.
Users can still sell digital goods in traditional auctions -- as long as they provide physical media which requires shipping. If you've got software on a CD or DVD for sale, that's fine. Just don't offer buyers the option of digital downloads or you'll be in violation of eBay's new terms of service. That said, when we checked this morning, there were plenty of auctions still available for digital downloads. It'll probably take eBay a while to clean house.
[via Techdirt]















Reader Comments (Page 1 of 1)
4-02-2008 @ 9:27PM
Marc Perton said...
I definitely sympathize with eBay; they need to do all they can to prevent people from gaming the system. But I agree that this isn't necessarily the right solution. If they're going to insist on a minimum price for ebooks, why not use Buy It Now, which allows feedback? This solution would seem to penalize legit ebook sellers, which I assume must exist somewhere on eBay!
Marc Perton
http://www.perton.com/
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4-02-2008 @ 9:30PM
Marc Perton said...
I definitely sympathize with eBay; they need to do whatever they can to stop people from gaming the system. But instead of classifieds, why not use Buy It Now? They could still charge a fee that makes it too expensive to game the system through low-prices, but at least feedback would be included, so that legit ebook sellers wouldn't be penalized -- unless, that is, there are no legit ebook sellers on eBay, and this is intended to drive all the scammers away!
-Marc Perton
http://www.perton.com
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4-03-2008 @ 10:11AM
mike k. said...
How does this affect digital sales that are not reproducable. I.e. Virtual world sales.. Everquest Items, WOW items etc...
Reply
4-12-2008 @ 7:25PM
john haskins said...
Lots of us digital downloads ebay shop owners have built very large businesses on ebay and suddenly we will be evicted as it were. Some of us ebay shop owners have got together and starting an auction mainly for digital goods and we intend to run it FREE. Please come and join us.
http://bristol-auctions.com
Reply
4-14-2008 @ 5:00PM
AllenWC said...
I just started selling on Zipidee.com. Got all my vids and ebooks for sale on there. They rock! I'm done with ebay.
Reply
4-14-2008 @ 9:54PM
Josh said...
I had sold digital download since it was first allowed on eBay. It was my main income stream and now I have to find an alternative. It seems that eBay is actually hurting the online auction community by changing their digital download policy.
Josh
www.abigarcade.com
Reply
5-15-2008 @ 9:49AM
Diana said...
I sell downloadable sewing patterns. Etsy allows this, and there is no abuse that I am aware of among any of its sellers. I believe in my field (sewing patterns) digital files offer a valuable service of quality materials, great convenience, storage options and ability to size the patterns (within the limitations of the printer) and personal service. The digital customer has access to a wider selection of designers and styles to choose from. I can think of no disadvantages for the customer, unless the seller is irreputable -- in which case feedback should show this. The world is changing. eBay needs to keep up.
Diana
www.dianacouture.com
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5-25-2008 @ 6:39AM
john haskins said...
Just forget eBay. Not much point in kidding yourself they will come to their senses. They own eBay, they set the rules. Nothing wrong with that. So it leaves us with no platform to sell our goods. Well that is how it was when I started.
If you want to make your living now in the net then do some work, build a site and market it. This will give you a much better living than eBay ever did.
I had a good living from this method 8 years ago. I then started selling on eBay at very good prices, then after some years the prices dropped and I was in trouble. So I rebuilt my websites and soon got back to better times.
This is not difficult to do. Just takes some hard work. If you would like some help to do this just contact me from one of my sites and I can help. A lot of my help will be free, so this is not me trying to get money from anyone.
http://ecom100it.com
Reply
5-25-2008 @ 8:36AM
john haskins said...
Just forget eBay. Not much point in kidding yourself they will come to their senses. They own eBay, they set the rules. Nothing wrong with that. So it leaves us with no platform to sell our goods. Well that is how it was when I started.
If you want to make your living now in the net then do some work, build a site and market it. This will give you a much better living than eBay ever did.
I had a good living from this method 8 years ago. I then started selling on eBay at very good prices, then after some years the prices dropped and I was in trouble. So I rebuilt my websites and soon got back to better times.
This is not difficult to do. Just takes some hard work. If you would like some help to do this just contact me from one of my sites and I can help. A lot of my help will be free, so this is not me trying to get money from anyone.
Reply
5-27-2008 @ 10:32PM
Christina said...
You can cancel our service at anytime, thus, there is no risk to take advantage of our offer. But I am sure you will be very pleased with us.
Please feel free to contact me with questions.
Tell your friends and spread the word!
Let us make your digital good sales a success,
Christina
Christina.Horsford@payloadz.com
https://www.payloadz.com
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