The eBay Slap

If you haven’t already noticed there has been a lot of wailing and gnashing of teeth recently due to eBays action to stop the sale of digital downloads as from today. It is almost a repeat of the Google slap where they effectively closed down thousands of online businesses due to a tightening up of their own policies to get rid of “spam” type junk web pages geared to Adsense. In eBay’s case they objected to the Feedback system being manipulated.

For digital booksellers on eBay this has obviously come as a shock as effectively their online stores have been closed. Some of the more enterprising marketers have just accepted it and got on with working to the new regulations.

John Thornhill the UK based owner of the Planet SMS ebook store has been looking at the problem and is now intending to convert his digital products to a physical CD. He has written an interesting report and produced an audio discussing the problem which can be downloaded from Here

John has commented on the fact that there will be some people who will try to cheat the system and find another way of selling downloadable products. Sooner or later eBay will find them out and shut them down. There is just no point in trying to cheat the system. A better approach, as suggested by John, is to look at as an opportunity as there will be a big hole left for “information” products which somebody has to fill.

The lesson you can learn from all this is to never have all your eggs in one basket.

In the long term it can only lead to better products and higher profits for the people able to create the products people want. So its not all doom and gloom.

eBay bans digital downloads

I suppose it had to come sooner or later. If you’ve ever wondered how people make money selling 99 cent ebooks on eBay, the answer is they don’t. These “giveaways” are used to build lists. The problem is that other people also use them to build up their feedback ratings again by effectively giving “zero cost” ebooks away.

eBay regards this as Feedback Manipulation so from March 31st all goods that can be digitally downloaded must be listed using the Classified Ads format. The Ad listings are regarded as a lead generation tool, so no auction style or fixed prices. These ads do not result in any transactions that go through eBay. Feedback cannot therefore be exchanged between buyer and seller.

This means that direct sales of downloadable digital products through eBay will  eventually disappear.

As I’ve said before I’ve never been a great fan of eBay but it did offer an add on strategy to conventional selling on the web. We will have to see how this develops and if there is any point using eBay to sell or promote digital downloadable products.

The Next Step

It’s mid March and I am just finalizing the two ebook/software packages I’ve ceated as the launch products for my Alpha Project.

If you’ve ever done product creation before then you will know that you are never satisfied with what you’ve done and you could go on forever modifying and improving. BUT there comes a point where you have to go with what you’ve got. 

There are also other time constraints based on the seasonal nature of the computer business. Whether you are selling ebooks or computer hardware the normal trend is for computer type sales to dwindle in the summer, typically in the June to September period when everybody is out in the sun and going on holiday.

Easter is usually a good time to launch new products, before the Summer lull kicks in, so that is what we are planning to do.