eBay Enhances Support For Digitally Delivered Goods, Requires PayPal

Hi Ina,

I believe that eBay is forced to enter into this segment. The ebook industry is finally picking up, aided with the introduction of better readers and more available content. Being in the online payments space, I know a number of merchant providers and investors who are gaining a bigger appetite for the downloadable products segment. Another driver of this is the availability of higher speed Internet connections in developing countries. Locations such as Ukraine, Romania, and Pakistan are chalked full of developers ready to sell code to various open source projects. Developers here in the US often find it easier to purchase code from a contact in a developing country then to do it themselves. Call it outsourcing on a micro level maybe?

My main point is that eBay needs to call to its " eBay and PayPal developer network" to come up with the solutions to selling digital goods on eBay. If they do not, they risk losing share in this growing market to Overstock, Craigslist, and the growing number of marketplace sites.

Stew