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26th March 2008

eBay Shafts Digital Goods

posted in Strategies |

In a move which shocked thousands of eBay digital goods store owners, eBay has banned goods with digital delivery methods - ebooks, music, software, web templates, domain name sales, design services, web hosting, craft epatterns etc - from being shown in their auction marketplace.

Instead, if you want to list such products, you have to now use their Classified Ads service.

Brian Burke, eBay’s Director Global Feedback Policy, cited “feedback manipulation” as the reason for this change in the official announcement on March 24:

… this creates the potential for Feedback Manipulation (both real and perceived). To preserve the integrity of the Feedback system, effective March 31 all goods that can be digitally downloaded or transferred electronically must be listed using the Classified Ads format.

Apparently eBay reckons this will be better for all concerned as their Classified ads are regarded as a “lead generation tool” so all enquiries will instead be directed to the advertiser’s web site, and NO financial or feedback transactions will go through eBay.

If sellers DO wish to use the classified service to sell their digital goods, they get lumbered into the very generic “Everything Else>Information Products” category and get charged $9.95 for a 30 day listing.

Naturally the eBay forums are abuzz with lively discussion about this!

While on one hand you’ll get rid of a lot of the digital garbage that proliferates - eg MRR packages offered for under a dollar - this move has caused huge problems for a LOT of store owners who actually run legitimate online businesses through eBay, who have sold thousands of items and have remarkable feedback comments.

Poof! Overnight their business is totally stuffed!

The “urgency” of an impending closing auction date is no longer a tactic they can use - and according to lots of store owners, it was an effective one!

Time for Plan B. Ooops…. they have no plan “B”. Another reason to not put all of your eggs into the one basket.

Look, this is probably a case of eBay reacting to a few bad apples in a very large barrel, but I wouldn’t be surprised if the “feedback” issue is a coverup for the real reason. Perhaps avoiding liability for sales of pirated software or sexually explicit material?

And drat! There’s a whole chapter gone from a new info-product I was writing that I was gonna sell on eBay when I finished it!!!

Oh… BTW… coupled with the recent news that eBay canned their affiliate program with Commission Junction, this is making for interesting times for Internet Marketers… I wonder how many will be able to keep up to date:)

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This entry was posted on Wednesday, March 26th, 2008 at 7:56 am and is filed under Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

There are currently 3 responses to “eBay Shafts Digital Goods”

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  1. 1 On March 27th, 2008, G.Wadel said:

    Your absolutley right, there is probably more to this story that we do not know about, sure going to hurt those selling digital products. thanks

  2. 2 On March 28th, 2008, jason said:

    THE SOLUTION TO THE EBAY BANNED DIGITAL ITEM PROBLEM… YOUTUBE

    We sell on ebay why? Because it has the traffic and traffic = sales! well Youtube has just as much traffic (more in fact, lots more). So learn how to draw the traffic from Youtube insted of eBay - it’s easier then you would think!

    I’ve been doing this for a while now anyway, and it produces better results then eBay!

    3 Ways YouTube Generates Targeted Traffic For You!

    YouTube doesn’t just give you traffic from its own regular searchers. But, you can get traffic from it in 3 ways. These include:

    1. From those searching on YouTube. There are countless hundreds of thousands that come to YouTube on a regular, often daily or weekly basis.

    They then find your videos by typing-in a search query on the site. For example, if you have a video on “Tatoos,” then when somebody typed in this term, they might find your video.

    Traffic from YouTube.com starts coming-in within mere hours of submitting your video.

    2. Listings from inside Google, Yahoo, and MSN for prized terms. Google loves YouTube videos and often gives them prized search rankings.

    It’s often far easier to get a listing for a top keyword by submitting a video to YouTube than it is to create a web page on your own new website for that search keyword.

    The traffic you get from search engines is almost always going to be much higher quality than that from just YouTube.com searchers.

    3. Other website owners picking-up your videos for distribution. When you upload a video to YouTube, you have the option of allowing others to put it on their websites or blogs. And this is common!

    If they do, this can cause an avalanche of targeted traffic. The readers of that blog will view your video, check-out your website, and possibly republish your video if they have a blog or website!

    As you can see, YouTube generates traffic from across the web… and by submitting your videos, you can gain a massive amount of exposure to many different audiences.

    It’s a real simple process when you know how. A very good place to start would be the Tube Mastery system on profiting from YouTube (and other video submission websites), check-out “Tube Mastery” over at:

    >>> http://www.TubeMastery.com

    Lets move forward!
    Jason Shepherd

    Stephen - great idea Jason - YouTube videos should be a part of anyone’s promotional mix once they have the skills needed! And like everything else, it’s really not that complex once you’re shown how :)

  3. 3 On March 31st, 2008, Stephen Spry said:

    Ebay has issued some sort of clarification…

    As well as offering more explanation of the “feedback” situation, that link also explains custom services “where the buyer and seller work collaboratively to develop a custom designed website, will be treated as a service, like they are today” and can stay as auction or fixed price listings.

    There’s also a strong WARNING about NOT offering “the buyer the option of receiving the content via physical media or via digital delivery or electronic transfer” and “Any product listing for downloadable digital items that implies or suggests that the item can be received electronically will be a violation.”


    John Thornhill from Planet SMS has issued a new report that’s well worth getting hold off.

    Full details here.

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