For those of you selling digital products through Ebay and using PayPal for taking payments, you better sit up and take notice! Your business is in danger!!
This week eBay announced new requirements for sellers who list digital products like ebooks, songs, recipes and other downloadable goodies.
(PRWEB) December 18, 2005 — Acknowledging higher demand for digitally delivered products, Mara Holian, from eBay’s Product Marketing team said that eBay is tightening the rules for egoods in an effort to “improve the way these items are bought and sold on eBay”.
Sellers will now be required to identify digital items during the listing process and provide additional information about each product.
Listings for digital products will now include:
*System Requirements.
*File Size.
*File Format.
*Details about any additional software that may be required to use the digital product, such as Adobe Acrobat Reader for .pdf files.
I know what you’re thinking: “Shouldn’t the listings already contain this info?”
Of course. But, have you ever browsed auctions for an ebook? Some sellers in fact, do not make this basic information prominent in their listings. Buyers will now find the relevant info in the same place and format in every listing, instead of it being scattered about or omitted altogether.
According to eBay’s site, sellers of digital goods are now required to use a “PayPal Verified Premier” or “Verified Business” account or eBay’s “Checkout Redirect functionality” in order to collect payments.
Does this mean that you can’t sell digital products unless you use PayPal or set up complicated software using eBay’s API?
Probably not. Third-party services may still be an option.
An inquiry to one of the largest auction checkout & payment services, Andale, was not immediately answered. But they, and others, are likely to make updates which include this new, required functionality.
eBay also said that buyers will no longer see “unnecessary information, such as shipping costs”. Which leads one to believe that the days of a 99 cent ebook with $12 in “shipping and handling” charges are gone.
Some sellers have been known to list digital items with unnecessary charges like these, and many buyers, in their enthusiasm to purchase one of these products, overlook these fees only to be disappointed upon checkout.
In addition, sellers will now be required to state that they are “legally authorized” to sell the product.
Research shows that everything downloadable: ebooks, mp3 songs, whole music CDs, even movies, are being offered as illegal downloads via online auction services.
While the legitimate online auction marketplaces police these types of listings and remove them promptly when they are reported or noticed, occasionally an item may slip through leaving those involved open to legal action by the copyright owner.
So, will eBay’s new policy have the effect of eliminating piracy on the auction site?
Don’t bet the farm.
Often, sellers mistakenly believe that they have purchased “resale rights” to the digital products they’re offering for sale. So naturally, they will agree that they have the “legal” authority to re-sell the product.
Many egoods do not contain a copyright notice or resale agreement.
An inexperienced or hasty ebook publisher may unintentionally omit the information or a “pirate” may have removed or edited the author’s copyright/resale notice.
While the new guidelines are certainly not a foolproof solution to digital piracy, eBay should be commended for taking a step in the right direction.
For more information on eBay’s new digital goods requirements, see: pages.ebay.com/choosingformats/digitalitems/faqs/
Mike Nalbone is the publisher of “The Essential eBay Seller’s Guide” which is a free, complete e-course that gives those who wish to sell successfully on eBay a great head-start. For more information, or to sign-up, visit: www.thewholesaledetective.com/ecourse.html
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Heres one to toss about,
Yes Liz, I have recieved 5 each well known , repsected marketers get chopped my payPal just this week alone..
Ok’s the question:
When is to be totally concidered if you are selling a ‘digital product’,
/ selling products with resale rights.
whether you own the product or as a _affiliate, is it to be concidered as a
* multi level marketing program *
Damn, I didn’t realize that was considered multi level. Heck thousands of people do it online each and every day. It’s not multi level either. You simply buy a product and you too can sell it. If that was multi level anyone who buys a product and resells it is considered multi level.
Seems that PayPal is doing it again…
QUOTE:
UPDATED AS OF 04/15/06__
www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside&ed=rich_quick
You may not use PayPal to send or receive payments for any form of multi-level marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, “get rich quick” scheme, or other similar ventures.
Multi-Level Marketing
Multi-level marketing plans, also known as “network” or “matrix” marketing, include any business in which a person receives proceeds from his or her own sales of goods or services, of recruited members, or any combination thereof. Similarly, PayPal prohibits as a Multi-Level Marketing plan any business in which payouts occur at two or more levels (both by the individual who actually sold the product as well as by the person(s) “upline” that recruited the selling individual).
Comment by M.J. Darnell — April 26, 2006 @ 2:31 pm
Well, this is my first time “blogging.” This PayPal matter resonates with me because my account has been frozen more than once and nothing I did to comply with
PayPal’s demands or the customer’s requests made any difference. I was just shutdown and pretty much accepted they win. It appears that refunds were the only thing that allowed my account to become fluid again. With that being the case one complaint from any client even if it is the affiliate program’s fault I just issue a refund and get on with it.
Thank You.
Gracina
tinyurl.com/dmrtc
P.S.-I’ve heard rumors that some paypal accounts are shutdown for making too much money. What is that?
Comment by Gracina — April 26, 2006 @ 4:47 pm
I had to fight with paypal over closing my account first - the 180 days hadn’t expired since I’d last used the site - no they couldn’t automatically cancel it on that date - I had to phone back - interstate and be placed in the hold queue for however long it took. No I couldn’t start a new account until the old one was closed. I missed two very important purchases because the sellers had no other payment option than paypal. Right now even though there is money in the system paypal will not allow me to purchase anything online. GRRR.
Sellers please use other payment methods than just paypal. All of you want to sell your products and are usually on autorespond so we find it difficult or impossible to find alternative payment options.
Comment by Lynne — April 26, 2006 @ 8:53 pm