Everyone else who uses the Internet should take note.
Friday June 1 12:24 AM ET
dailynews.yahoo.com
By BRIAN BERGSTEIN, AP Business Writer
SAN JOSE, Calif. (AP) - People across the country who sell things on
eBay are furious with the auction site because of its recent move to
charge subscription fees for a popular piece of software that makes it
easier to list items.
In irate notes on message boards and e-mails to the company, sellers
accuse eBay of getting greedy and belying its warm and fuzzy
community-focused image. Some are threatening a class-action suit
because older versions of the software, which cost as much as $200,
stopped working.
Everyone else who uses the Internet should take note.
An increasing number of companies, including giant Microsoft Corp.
(NasdaqNM:MSFT - news), are expected to embrace subscription
models and move away from selling software for a one-time fee. The
companies say they simply can't afford to keep giving away free
upgrades.
``The trend is undeniable - it's just a question of how long it's going to
take,'' said Rob Enderle, a research fellow with Giga Information
Group. ``The existing model isn't working. You can certainly try to live
in the past, but whether you're a Microsoft or an eBay, you're probably
going to get bypassed.''
Microsoft has introduced subscription-based options for business
software, including the new Office XP, and called the move a ``first step
toward offering software as a service'' - meaning subscription plans for
all users. Oracle Corp. (NasdaqNM:ORCL - news) gives away sales
force management software for now, but has indicated it eventually will
charge a subscription.
The eBay software was known as Auction Assistant, and now is called
Seller's Assistant. Because it helps eBay users post attractive
presentations of their products and manage the transactions, it is
popular among people who list several items at once.
It was created by Pennsylvania-based Blackthorne Software, which
eBay acquired in 1999.
Users say they bought Auction Assistant and its supercharged version,
Auction Assistant Pro, for $50 to $200 over the years with the
understanding that Blackthorne would upgrade the software for free
when improvements were available, or when needed because of
technical changes in the massive eBay site.
In February, Blackthorne informed users Auction Assistant was being
upgraded, taking on the new Seller's Assistant name and switching to a
subscription model - $4.99 a month for the basic version, $15.99 for
Pro. Existing Auction Assistant users were told they could get a year's
subscription to the new software for free.
On April 1, Blackthorne's president, John Slocum, wrote on the
company's online discussion board that almost two-thirds of Auction
Assistant users had switched to Seller's Assistant. He added that, after
April 30, Blackthorne ``cannot assure users that Auction Assistant will
continue to be fully functional or compatible with the eBay site.''
Despite the warning, many users were caught off guard when their
Auction Assistant programs stopped working last week. They accused
eBay of intentionally making Auction Assistant useless to force them to
buy the new software.
``Why weren't we just grandfathered in, since we already owned the
same program?'' said Cindy Izon of Tulsa, Okla., who sells decorative
dolls on eBay. ``It makes me so mad.''
Dan Rushing of Albuquerque, N.M., lamented what he called eBay's
``extreme arrogance.''
Collectibles seller Carol Hudson of Chattanooga, Tenn., wrote in an
e-mail interview: ``Most of us have been angry with them for two or
three years because of their `do it our way or get lost' attitude. But this
time, they have really gone too far and shown their true colors.''
EBay spokesman Kevin Pursglove said nothing was done intentionally
to disable older versions of Auction Assistant. He said what occurred is
most likely ``the natural obsolescence that's going to be developing any
time a piece of software ages.''
He also said the subscription model is necessary to finance continued
improvements to the Blackthorne software, and disputed suggestions
the company was taking unfair advantage of its dominating position in
the online auction business.
``I realize that's a fairly common remark when any customer has a
certain level of frustration, but it doesn't do the business any good to
`bleed people dry,''' Pursglove said. ``We want users to continually
come to eBay, to continually use the Blackthorne programs to sell on
eBay.''
Arthur Newman, head of Internet research at ABN Amro Inc.,
supported eBay's stance and said it is part of the new economics of the
Web.
``I think the Internet over the last few years has spawned a whole
generation of people who expect to get everything for free and forget you have to pay for services,'' he
said. ``If people can't make money providing them, they're going to stop providing them. There's a limit
to good will. EBay is hardly alone in starting to charge for things.'' |
