Ebay stupidity reached a new high last week when they decided to stop allowing digital downloads from the popular online auction. In recent years most of us have given up all hope of understanding why major internet companies regularly go through a process of shooting themselves in the foot. We see it regularly from so many of them one is led to think that masochism is a condition of employment.

Maybe its just plain arrogance: "We do it because we can." Possibly it is due to lack of suitable competition. Who knows what goes on inside their heads. We see this type of action regularly from most internet giants?

Let's take a look at what they (eBay) have decreed and then take a look at how this will affect both sellers and buyers at this popular auction site.

From the end of March no seller is allowed to sell a product on eBay that can be downloaded digitally. That is immediate download with NO deleivery costs to the buyer.

One would think that any company would like to please their most valued clients. The majority of eBay power sellers are in the business of selling digital products. They are power sellers because the buyers like what they sell and like to receive it immediately. Hence they keep coming back to these sites to spend their online dollar. So now we are seeing it as an act against the biggest sellers that have the majority of buyers; they are upsetting everybody.

Online shopping, particularly at eBay, is all about full service at a good price. This act of refusing to allow digital downloads will not stop the sellers of digital products. They can easily put their products on a disk and deliver by mail or courier. All that will happen is that prices will have to rise and delivery charged. I'm sure regular buyers of digital products are not going to be happy when they have to pay $15 plus $5 handling and shipping for a product they could buy for $10 until the end of March 2008. Not forgetting the convenience of instant downloads; from this point forward all deliveries are subject to the varying levels of efficiency of mail services around the world.

Because sellers of digital products dominate eBay power sellers list and are therefore the biggest payer of fees to the auction site we are left with the thought of: What happens when they see revenues falling? Do they reinstate digital downloads or will the digital products sellers be happier with their new found ways of selling and distributing products by that time.

Long ago in Britain a certain King Canute sat in a chair on a beach in front of an incoming tide convinced that his power as King was greater than that of nature and he could turn the tide back. Naturally he failed and ended with a wet bum before he was persuaded to give up the fight. Maybe he has been re-incarnated and is now an executive with eBay?

Written by Davmac

Copyright JEM Trust 2008.

Davmac is webmaster at http://www.ayecasher.com a website dedicated to helping people achieve the lifestyle they dream of by understanding themselves and those around them.