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 Here's my strategy for Ebay's No Digital Policy
 
Author  Topic 

JoeMack

Posted - 03/26/2008 : 19:54:35
Hello All,

The new policy that ebay is implementing regarding the prohibition of digital product sales really took me by surprise.

If this would have happened a year ago, I would have really been affected being that about 75% of my income at the time came from ebay sales.

Luckily I diversified over the past year. I still sell items on ebay, but they now account for about 20% of my income.


Here's my strategy for ebay's new policy:

1. I am currently converting all of my listings into CD delivery. I am going to charge a fixed amount to have it shipped.

2. I am only going to charge buyers shipping charges for just one CD. In my listings, I encourage them to buy more than one item so that I can place it on a single CD.

3. As soon as I receive payment confirmation, I am going to email the buyer and let them know that their item will be mailed out within 48 hours. I will also ask them if they want a download link to instantly get access to their purchase.

I am hoping that this will make the buyers happy.

4. I will still mail out the CD. This will make ebay happy.

5. The CD will also include an upsell to a bigger backend product.

6. I will probably outsource the CD delivery.

How does this all sound? My goal is have buyers and ebay happy, while keeping time, effort and expenses as low as possible.

Does this strategy sound effective?

Joe

Melanie Crouse

Posted - 03/26/2008 : 20:00:55
Sounds like alot more work and expense to me!
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Steve Taylor

Posted - 03/26/2008 : 20:13:34
Sounds good Joe...

#3: I would just send them the instant download link as a "bonus" because you will get into too many emails back and forth.

#6: where will you outsource to?

Regards.Steve
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JoeMack

Posted - 03/26/2008 : 20:34:18
quote :
Originally posted by Melanie Crouse

Sounds like alot more work and expense to me!


Yeah, it is. But its a temporary solution. And like I said, I'll probably outsource the actual CD delivery.

Joe
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tj

Posted - 03/26/2008 : 20:34:23
quote :
Originally posted by Melanie Crouse

Sounds like alot more work and expense to me!


Actually it is a value added product instead download only. For my part I offer print/ cd and download together.

Timo
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casuesmith

Posted - 03/26/2008 : 20:43:31
Do you think eBay is going to let you get by with sending the digital file and the CD.

If I read the eBay forum correctly, they have said that no downloads can be used. It is, of course, possible that I misunderstood.
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JoeMack

Posted - 03/26/2008 : 20:51:14
quote :
Originally posted by casuesmith

Do you think eBay is going to let you get by with sending the digital file and the CD.

If I read the eBay forum correctly, they have said that no downloads can be used. It is, of course, possible that I misunderstood.


As far as I know, sending the download link will be ok as long as the CD is being delivered. But I'm not 100% sure, thus the reason for this post.

The CD delivery will happen. The download link is optional.

Joe
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Josh Kulp

Posted - 03/26/2008 : 20:56:32
I posted this in another thread, but it's buried, so here's my solution:

I sell my digital product at $19.95, and sell hundreds per month....but I'm not panicked.

CD Duplication and labeling (this is just one example, there are many cheaper options available): http://www.amazon.com/Primera-Techn...p/B00076TGYI

Mailers: http://www.esupplystore.com/

Postage: http://www.stamps.com/innerspace/howitworks/

All in all it will be about an hour extra work per day...but considering that a physical product will have lower refunds, and I can pack some ads into each mailing, it's worth it. Relax.
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Alton Hargrave

Posted - 03/26/2008 : 21:21:20
I think many of you are missing the point. Sales are going to crash because people are used to instant gratification. Instant delivery. They will hesitate. And, many will not place the order.

It doesn't cost that much to mail a disc. I will probably just mail the disc to my customers at no extra cost anyway. That will make the offer seem better. But, sales are going to really diminish. I am not going to place 10 dollar classified ads to sell multitudes of low dollar ebooks that rarely sell for me. I was offering them through my Ebay store. I suppose I will drop my Ebay store.

I just don't see the logic in all this. If Ebay is concerned about keeping us from exchanging feedback when dealing in electronic downloads...why don't they remove the feedback option when dealing with electronic downloads? There must be another reason for all this. It just seems like this is a no-win solution for both Ebay and the seller.

Alton
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JoeMack

Posted - 03/26/2008 : 21:22:08
Josh,

Good to see that you are remaining calm, especially with the volume you are selling.

You're name sounds so familiar. I mus have purchased something from you before.


Best wishes,

Joe
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JoeMack

Posted - 03/26/2008 : 21:28:09
quote :
Originally posted by Alton Hargrave

I think many of you are missing the point. Sales are going to crash because people are used to instant gratification. Instant delivery. They will hesitate. And, many will not place the order.

It doesn't cost that much to mail a disc. I will probably just mail the disc to my customers at no extra cost anyway. That will make the offer seem better. But, sales are going to really diminish. I am not going to place 10 dollar classified ads to sell multitudes of low dollar ebooks that rarely sell for me. I was offering them through my Ebay store. I suppose I will drop my Ebay store.

I just don't see the logic in all this. If Ebay is concerned about keeping us from exchanging feedback when dealing in electronic downloads...why don't they remove the feedback option when dealing with electronic downloads? There must be another reason for all this. It just seems like this is a no-win solution for both Ebay and the seller.

Alton


Alton,

Sales my go down....or they may go up. Sure, there will be people who want the instant download, and won't buy. But I'm sure there is a percentage of people who want a physical product (it may even increase the perceived value).

Only time will tell how all this shakes out. One thing I do know is that I can't spend my time debating WHY ebay enacted the policy change.

The rules have change...its time to adapt.

Best wishes,

Joe
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Hendry Lee

Posted - 03/26/2008 : 23:52:19
Sounds like a great strategy.

MarketingTips.com doesn't announce their insider secrets course as digital downloads. However, when I was waiting for the package, they confirmed my payment and send the link to ebook pro version of the course to my email.

I was happy I could start reading immediately while they ship the product.

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timesaver22

Posted - 03/27/2008 : 03:15:01
How many ebay info sellers will make the move or just give up on internet selling many of the best marketers today started on ebay would this have killed them.......no
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dbarnum

Posted - 03/27/2008 : 06:12:26


CafePress.com can help (no affil).
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thehypnotist

Posted - 03/27/2008 : 06:27:06
could you not offer them a small refund and say if you download the product instead you can have xyz discount
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reubenrock

Posted - 03/27/2008 : 07:31:29
I've been pondering this issue myself over the last few days. I only have a few products that I sell on ebay - all original, all higher priced items ($12-$59). I'm planning to just use the CD route. It will actually motivate me to create some additional promotional content that I can include on the disc. Since I already sell a few physical products off ebay, the extra labor won't bother me much.

I will also try the classified ads for a few products and compare those results to the CD route. I guess we'll see what works over the next month.

Adapt, people! Evolution is the name of the game. I'm glad a lot of the junk ebayers will take a hike and stop cluttering ebay.

Best of luck!
Reuben D. Rock
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Josh Kulp

Posted - 03/27/2008 : 07:35:30
quote :
Originally posted by Alton Hargrave

I think many of you are missing the point. Sales are going to crash because people are used to instant gratification. Instant delivery. They will hesitate. And, many will not place the order.

It doesn't cost that much to mail a disc. I will probably just mail the disc to my customers at no extra cost anyway. That will make the offer seem better. But, sales are going to really diminish. I am not going to place 10 dollar classified ads to sell multitudes of low dollar ebooks that rarely sell for me. I was offering them through my Ebay store. I suppose I will drop my Ebay store.

I just don't see the logic in all this. If Ebay is concerned about keeping us from exchanging feedback when dealing in electronic downloads...why don't they remove the feedback option when dealing with electronic downloads? There must be another reason for all this. It just seems like this is a no-win solution for both Ebay and the seller.

Alton


I don't expect sales to crash at all. Before I really ramped up my eBay sales, I shipped everything via USPS. Auction for auction, sales are about the same for me with a physical item plus the cost of shipping, as they are for a digital item with no shipping charge. You factor in the lower refund percentage with a physical product, and revenue should be INCREASED.
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nyrsimon

Posted - 03/27/2008 : 07:48:01
So I have a slightly different story. I have been selling ebooks etc on CD via ebay for 18 months now.

Ironically I just started (early March) a new eaby ID with nothing but digital delivery - it was growing very nicely....oh well

So on the CD front this I what I do.

I purchased a multiple CD burner (5 discs min, but 10 is MUCH better). I take a few hours a month - aout 4 - and create a few hundred CDs. I also use a college student in my neighbourhood and pay her $10 per hour to help out. If I buy the cases, CD/DVD's on sale at staples and buy the labels cheap off of Ebay I am all in for about $.60 - .70 per cd. I ship these via UPS to a fulfilment company in PA. I have a guy in India ($4 per hour!!!) who goes into my Ebay ID every day and downloads my sales, puts them in a s/sheet and FTP's them to my fulfilment house. They ship them. It costs $2 per item ($1.50 when volume is above 1000 units per month) plus postage. So for 1 CD it costs me $3.73 (with tracking). They will include one flyer in the package for free (plus you can put whatever you want on the cd obviously). Addl items are $.40 or there abouts so multiple shipping is very profitable.

Clearly more work and cos than digital delivery BUT the barrier to entry is bigger (I LOVE that).

I compete against dig delivery guys, so with them gone I am assuming sales will go up.

BTW - has anybody looked on ebay lately? Seems people who deliver digitaly are just putting the items up as free shipping - wonder if Ebay will crack down on them?

If anybody has a better (more automated) process I would love to hear it

Simon
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reubenrock

Posted - 03/27/2008 : 07:51:14
Hey, I had another idea. If you are worried about customers losing immediate gratification, why not offer a bonus item that can be downloaded after the purchase? They get something while they wait for the main product to ship.

I'm not sure how to automate this delivery with ebay's new policy, but there must be a way. Any insight guys?
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Josh Kulp

Posted - 03/27/2008 : 08:43:24
quote :
Originally posted by nyrsimon

I purchased a multiple CD burner (5 discs min, but 10 is MUCH better). I take a few hours a month - aout 4 - and create a few hundred CDs.

Simon


What CD burner did you purchase? if you don't mind sharing.
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John Hocking

Posted - 03/27/2008 : 09:30:26
quote :
Originally posted by nyrsimon
If anybody has a better (more automated) process I would love to hear it



You may want to check out http://www.kunaki.com/

They can store the information for you CD and produce
your CDs on demand.

It does not matter if you order 1 or 1000 the cost is $1.75 per CD/DVD

Below is a break down of what you can do

Full color CD with jewel case
Manufacturing / assembly included
Full color CD printing included
Jewel case included
Full color 2-panel insert included
Full color tray card included
Cellophane wrapping included
UPC bar code included
24-Hour rush manufacturing included
All inclusive price $1.75


Full color DVD with DVD case
Manufacturing / assembly included
Full color DVD printing included
DVD case included
Full color 1-panel insert included
Full color DVD case cover included
Cellophane wrapping included
UPC bar code included
24-Hour rush manufacturing included
All inclusive price $1.75


They can drop-ship to any address. Just-in-time production means risk-free, zero warehousing costs.

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espacecadet

Posted - 03/27/2008 : 10:33:02
Kunaki.com

Lulu.com

cafepress.com

They burn, print and ship for you, no minimums. Out the door within 24 hours of getting the order.

I'm looking at them right now.

Allen Farlow
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madison_avenue

Posted - 03/27/2008 : 11:02:49
quote :
Originally posted by nyrsimon

So I have a slightly different story. I have been selling ebooks etc on CD via ebay for 18 months now.

Ironically I just started (early March) a new eaby ID with nothing but digital delivery - it was growing very nicely....oh well

So on the CD front this I what I do.

I purchased a multiple CD burner (5 discs min, but 10 is MUCH better). I take a few hours a month - aout 4 - and create a few hundred CDs. I also use a college student in my neighbourhood and pay her $10 per hour to help out. If I buy the cases, CD/DVD's on sale at staples and buy the labels cheap off of Ebay I am all in for about $.60 - .70 per cd. I ship these via UPS to a fulfilment company in PA. I have a guy in India ($4 per hour!!!) who goes into my Ebay ID every day and downloads my sales, puts them in a s/sheet and FTP's them to my fulfilment house. They ship them. It costs $2 per item ($1.50 when volume is above 1000 units per month) plus postage. So for 1 CD it costs me $3.73 (with tracking). They will include one flyer in the package for free (plus you can put whatever you want on the cd obviously). Addl items are $.40 or there abouts so multiple shipping is very profitable.

Clearly more work and cos than digital delivery BUT the barrier to entry is bigger (I LOVE that).

I compete against dig delivery guys, so with them gone I am assuming sales will go up.

BTW - has anybody looked on ebay lately? Seems people who deliver digitaly are just putting the items up as free shipping - wonder if Ebay will crack down on them?

If anybody has a better (more automated) process I would love to hear it

Simon

Hi nyrsimon

You've got a well tuned system there! Your system seems to work out cheaper than kunaki who charge $1.75 + $5.00 for delivery. So is your total cost including delivery only $3.73? if so do you feel that the additional work is worth it for the cost saving?
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nyrsimon

Posted - 03/27/2008 : 11:40:05
Josh

I just bought something like this off of Ebay
http://cgi.ebay.com/1-5-PIONEER-CD-DVD-EXTERNAL-MULTIPLE-BURNER-MOVIE-250GB_W0QQitemZ350037767372QQihZ022QQcategoryZ96914QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

Although I am thinking about one of those auto burn/print puppies - slower in time but much less labor. Would streamline my manufacturing process...

Simon
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Luke Sample

Posted - 03/27/2008 : 12:36:53
Yeah, of course I'm biased but those places (cafe press, kunaki, lulu) are SUPER expensive. That would totally wipe out the profit for many ex-digital item sellers.

The Kunaki total price plus shipping is $6.75 per disc. OUCH.
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n/a

Posted - 03/27/2008 : 12:40:31
I suspect the real reason is, as always, money ... it's likely that ebay saw a lot of digital sales for cheap products that are front ends to expensive backends (which is what I was going to do w/trading ebooks etc)... eg sell the $2-$5 ebook via ebay, which has offers in it for an additional $97 or $495 product etc, for which ebay would get no commissh.

Likely they see digital downloads as a fee-avoidance tactic, and also possibly due to the rampant piracy and likely behind the scenes legal actions that software/ebook producers may have taken.

Anyways, there's plenty of workarounds as you've all listed. Key in the cd delivery is to pack it with bouncebacks, eg huge 8 1/2 x 11' flyer of something at a higher price point that's related to the initial purchase, with a time-limited "coupon code" and a web link etc.. still easy to monetize it all.

-k
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Michael Mayo

Posted - 03/28/2008 : 07:08:37
Hi Joe,

I think you have layed out a good basic and workable plan of attack.
You may need to tweek it a little as you go along but it the fundementals are there.

When I had seen that eBay changed their Policy, I created a report
that lists Over 150 POD(Print On Demand)Companies.

The report contains a Brief Description of each Company, email address, Business Address, Telephone Numbers and whom to contact.

I presently have a WSO running and the report comes with PLR rights
if anyone is interested. See Sig Below for more details!

Have a Great Day!
Michael
quote :
Originally posted by JoeMack

Hello All,

The new policy that ebay is implementing regarding the prohibition of digital product sales really took me by surprise.

If this would have happened a year ago, I would have really been affected being that about 75% of my income at the time came from ebay sales.

Luckily I diversified over the past year. I still sell items on ebay, but they now account for about 20% of my income.


Here's my strategy for ebay's new policy:

1. I am currently converting all of my listings into CD delivery. I am going to charge a fixed amount to have it shipped.

2. I am only going to charge buyers shipping charges for just one CD. In my listings, I encourage them to buy more than one item so that I can place it on a single CD.

3. As soon as I receive payment confirmation, I am going to email the buyer and let them know that their item will be mailed out within 48 hours. I will also ask them if they want a download link to instantly get access to their purchase.

I am hoping that this will make the buyers happy.

4. I will still mail out the CD. This will make ebay happy.

5. The CD will also include an upsell to a bigger backend product.

6. I will probably outsource the CD delivery.

How does this all sound? My goal is have buyers and ebay happy, while keeping time, effort and expenses as low as possible.

Does this strategy sound effective?

Joe
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Michisor

Posted - 03/28/2008 : 08:20:22
Hi,
Print On Demand Companies, are one of the good solution.
For people which use MyDD for instant delivery, Socrateos is working day and night to add some features to MyDD for creation of CD-Roms as well.
The modifications will come out on 1st April, I'll keep you posted.
The new features for MyDD will create CD-ROMs from PDFs and will send cd-roms at any location in the world.
regatds
Michaela
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Sweet Jane

Posted - 03/28/2008 : 08:32:19
Hi Joe,
After my half hour chat with live help? at Ebay the other day it seems that they consider a digital download an email with a link to a digital download if it is sent through their platform. So, according to that theory, you would have to get the buyer either to optin or email them out of the ebay platform in order not to infringe the ban.

Leanne
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Kevin_Moriarty

Posted - 03/28/2008 : 09:06:25
When does this go into effect? I sell 6 different products on ebay regularly.
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Michael Mayo

Posted - 03/28/2008 : 10:08:02
Hi Kevin,

It takes effect on March 31.

Here's a link that gives you the details:
http://www2.ebay.com/aw/core/200803.shtml#2008-03-24125416

Have a Great Day!
Michael
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Luke Sample

Posted - 03/28/2008 : 11:51:11
It looks like Mydd is simply going to be integrated with kunaki. Too expensive.

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bobsstuff

Posted - 03/28/2008 : 12:34:53
From The Chatter, ebay's blog [url>http://www.ebaychatter.com/
Question: I've seen some product listings where the seller advertises "free shipping" where it means "email delivery". Will this be allowed?

Answer: No. As of March 31st, any product listing for downloadable digital items that implies or suggests that the item can be received electronically will be a violation.

I have been following one Discussion Board thread [url>http://forums.ebay.com/db2/thread.jspa?threadID=1000671814&start=0

Everything I read and any ebay link out to somewhere is indicating that any offer to download in addition to the physical product will be a violation.
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maxster

Posted - 03/28/2008 : 13:10:40
Cool stuff, thanks for sharing, lets all turn this negative into
a positive.

We can make more money from it.
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mkmagu

Posted - 03/28/2008 : 13:36:45
Another site to consider is www.createspace.com this is good if you own the copyright. You can do a regular printed book or an audio book too, and since it's an Amazon company you can list your products on Amazon.com
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Josh Kulp

Posted - 04/02/2008 : 09:24:59
I got my Bravo II yesterday, and I have to say I LOVE IT!

I can setup a burn and print job, go outside for a walk, eat lunch, do other work related tasks, etc..., and come back to 25 or more CDs burned AND labeled!

http://www.primera.com/bravoII_disc_publisher.html
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HUMMER

Posted - 04/03/2008 : 15:09:46
This seems like a pain in the ass to me even if you outsource it. Mailing a CD for $3 profit just isn't worth it. Sure you can backend it with a larger sale but this all seems OLD SCHOOL. You would have to sell 100 a day for it to be worth your while. I'm moving to other auction places like StormPay.com which still allows digital delivery. I have alot of feeling other people are going to do the same.
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bobsstuff

Posted - 04/03/2008 : 16:17:10
There are a lot of other auction sites other than ebay. However, ebay is where the money is and where the customers are ---today.
You might check out [url>http://www.powersellersunite.comfor uses reviews, comments and experienc with other venues.
In spite of the name, you do not have to be a power seller to join the site.
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