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., 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.
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."
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