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Q: Why is software so cheap on Ebay? ( No Answer,   3 Comments )
Question  
Subject: Why is software so cheap on Ebay?
Category: Business and Money > eCommerce
Asked by: bizdow-ga
List Price: $40.00
Posted: 03 May 2004 17:02 PDT
Expires: 02 Jun 2004 17:02 PDT
Question ID: 340594
I'd like to understand how sellers on Ebay are able to sell software
(such as Quicken, QuickBooks and Acrobat) at a huge discount to the
price in stores like Costco and Walmart.  Assuming these sellers are
not selling pirated software, why do the software manufacturers allow
their products to be sold at a prices that severely undercut the
prices offered at their best retail outlets, and in the case of
Walmart, an extremely powerful one.  I understand that online sellers
may not have to worry about the brick and mortar expenses of
storefronts and employees, but I would think that manufacturers have
some control over the final price that *authorized* retailers could
sell software for on Ebay.

Please provide as much documentation and source citation as possible,
although personal viewpoints from an answerer experienced in the area
is always welcome.  Also, as part of the answer, please provide any
estimates that you come across on the percentage of software sold on
Ebay that may be pirated.

Thanks.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Why is software so cheap on Ebay?
From: corwin02-ga on 03 May 2004 18:14 PDT
 
Without undercutting the regular dealers who happen to find themselves
a good deal , most of the very low priced software is so called OEM
software (and usually comes from the former Eastblock countries)

OEM software comes without manuals and without technical support.
Originally it was supposed to be sold with a computer (like a software
bundle when you buy a machine)

It is legal to have the software but do expect to be laughed square in
the face when you call the companies who made the software and ask for
support.
Subject: Re: Why is software so cheap on Ebay?
From: pinkfreud-ga on 03 May 2004 18:21 PDT
 
Some of the software sold on eBay is genuine, but marked "not for
resale" or otherwise restricted. A friend of mine bought a graphics
package recently on eBay. It turned out to be a version that was
intended only for use by students and educational institutions.
Subject: Re: Why is software so cheap on Ebay?
From: neilzero-ga on 03 May 2004 20:57 PDT
 
I suppose soft ware producers are searching for ways to reduce this
serious competion, but the legalities are typically grey, and the
sellers typically have few ascets that can be seized, even if the soft
ware producers win in court.  Neil

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