Webware

eBay on Sunday confirmed that a "technical issue" had caused search queries on the auction site to be messed up over the weekend, resulting in limited or no search results. The company says that it's being cautious, though, and is holding back on some advanced search features until the issue is fully solved.

"We are happy to report that critical search functionality was restored overnight on Saturday and we are seeing normal activity levels today," a post on the company's eBay Ink blog read Sunday. "As part of our effort to restore critical search functionality as quickly as possible for sellers and for buyers, we have kept some secondary search features temporarily offline. This includes refining search by certain item specifics, such as color or clothing size, and having Store Inventory Format results included in the main search results."

In a statement, eBay also said the technical issue was caused by "a surge in live listings as sellers ramp up for the holiday season. eBay currently has more than 200 million live listings, 33 percent more than at this time a year ago."

Some eBay members still weren't satisfied with the explanation. "I had a one day auction ending today, (and) no one was obviously able to bid on it because they couldn't search for it," one commenter said on the eBay Ink blog. "Will I get a credit for this?"

"eBay should credit all sellers with active listings during this time," another said. "These issues have cost sellers many bids and sales. Once again eBay is screwing sellers."

Much like Twitter's today, outages at eBay were rather prominent in the company's early days. They're not too frequent anymore. But this one came at a time when there are some sentiments of malaise among eBay sellers, some of whom use the auction site to make a living, and when it also faces increased competition in the e-commerce sector.

An analyst release from JP Morgan Chase said that it did not anticipate the outage would have an effect on eBay's fourth-quarter earnings. But, it contained a warning: "Although we recognize it is virtually impossible for a site of this complexity to not encounter occasional issues," the report from analyst Imran Khan read, "we continue to believe that eBay needs to make greater investments in the robustness and functionality of its site in order to remain competitive within the e-commerce space."

eBay Motors founder Simon Rothman announced on Monday that he has officially launched a new e-commerce site, Glyde.

According to the press release, Glyde's goal "is to democratize e-commerce." The site was born out of Rothman's desire to make it easier for Web users to buy and sell products online.

But Glyde throws in a twist. The site's marketplace is designed for Web users to sell used goods. They can sell books, CDs, DVDs, and video games.

"The average American household has $3,000 worth of unwanted media collecting dust," Rothman said in a statement. "We built a service that makes buying and selling a used DVD as simple as trading a share of Disney stock. It's the NASDAQ for physical goods."

It's an interesting take on what Glyde is all about. But after using the site for awhile, I would agree that it does make it extremely easy to buy and sell goods.

Glyde lets you search for DVDs, CDs, Games, or books.

(Credit: Screenshot by Don Reisinger/CNET)

Glyde's design is extremely simple. If you decide you want to buy some products, you can flip through the listing of available inventory, pick what you want, and learn more about it by clicking on it without much trouble. Unlike sites like Amazon or eBay, which deliver you to a product's individual page listing, Glyde displays the listing over the search results. When you're done looking at it, simply click the "X" at the top right of the panel and you'll be returned to your spot in the results.

Placed prominently on all product pages is a "Buy Now" button. Users have the option of buying a used copy of the product from a seller or a new copy.

Glyde shows off a product listing.

(Credit: Screenshot by Don Reisinger/CNET)

Glyde's buying process isn't all that unique. It's standard fare. And even though it offers discounted pricing, I just don't think it competes well against Amazon's Marketplace or eBay. Those sites have far more products, competitive pricing, and simpler checkout processes. Unless Glyde can improve upon that, it might have a problem.

But it's Glyde's selling side that will probably appeal most to users. The site makes it incredibly simple to sell products. Users need only to list the product, set a sales price, and wait for someone to buy. Once they do, Glyde sends them a prestamped, preaddressed mailer. Sellers need to insert the item they're selling into the mailer and place it in their mailbox. Once the buyer receives the product, the funds are deposited into the seller's account, less the cost of the mailer and Glyde's fee, which is 10 percent of the sales price.

Even better, those selling products on Glyde can opt for the proceeds to go to the charity of their choice. It's a nice option.

Glyde provides a simple, efficient e-commerce solution. But by taking on giants eBay and Amazon in the used-goods market, it will be difficult for the company to stay relevant and capture significant market share.

PayPal is preparing to launch a new payment system that simplifies the process of buying products from within an online application, The Wall Street Journal is reporting.

According to the report, the new service will be called PayPal X. It will allow users to sign in to their PayPal accounts and purchase products from within a respective application.

The service, which has reportedly been in limited testing, is eBay's best hope for capitalizing on the burgeoning in-app payment market, which has witnessed Facebook emerge as one of PayPal's strongest competitors.

According to The Wall Street Journal, Facebook's in-app currency, Facebook Credits, is now being considered by many developers that are lured by the social network's size and reach.

Sebastien de Halleux, chief operating officer of social-gaming company Playfish, told the Journal that his company is trying out Facebook Credits to possibly replace PayPal. He told the Journal that Facebook's service "can create a lot of value by reducing friction and allowing many more people to spend money." It also helps that Facebook's system, unlike PayPal, is built into the social network.

With PayPal X, it seems the online-payment company is trying to stay relevant in a market that is becoming increasingly complex (and crowded). It should be interesting to see if PayPal X can help PayPal stay relevant--and compete with Facebook.

Updated at 5:10 p.m. PDT with eBay comment.

Joltid, a peer-to-peer software company established by Skype's founders, filed a copyright suit against Skype Wednesday alleging Joltid's technology is being infringed on by Skype users "in the United States at least 100,000 times each day."

Just the latest in an ongoing license dispute between the popular VoIP service and its developers, the lawsuit, filed in Northern California U.S. District Court, seeks an injunction and damages, which Joltid "reasonably believes are amassing at a rate of $75 million daily," according to the suit.

Also listed as defendants are Skype's current owner eBay, as well as investors in a consortium that earlier this month signed a deal with eBay to acquire a 65 percent stake in Skype, with eBay retaining 35 percent.

"Skype has infringed Joltid's copyrights," a company spokesman said in a statement. "Joltid will vigorously enforce its copyrights and other intellectual property rights in all of the technologies it has innovated."

"Their allegations and claims are without merit and are founded on fundamental legal and factual errors," eBay spokesman John Pluhowski said in a statement.

The lawsuit has the potential to at least complicate the ongoing sale of Skype. In the past, however, eBay has said it's working on its own software to replace what it gets from Joltid.

In 2006, eBay bought Skype for $2.6 billion, but co-founders Janus Friis and Niklas Zennstrom retained the rights to Skype's key peer-to-peer technology--Global Index Software--via the Joltid company they formed.

Joltid terminated its license for the software after learning that Skype had allegedly acquired unauthorized versions of the source code, made unauthorized modifications, and disclosed the software to third persons, according to the lawsuit.

The two companies have been involved in a separate lawsuit in the U.K. over that license termination, but the case isn't set to go to trial until June 2010. Referring to that suit, eBay's SEC filing regarding the sale of Skype says "consummation of the deal was subject to 'no settlement of the pending litigation with Joltid Limited having been effected without the consent of the Buyer (subject to certain limitations).'"

The other defendants in the suit filed Wednesday are Silver Lake Partners, Index Ventures Management, Michaelangelo Volpi, Andreessen Horowitz, and the Canada Pension Plan Investment Board. This lawsuit was first reported Wednesday by The Wall Street Journal.

(Credit: CNET)

A new update to eBay's free iPhone application (App Store link) enables users to better keep an eye on items they're interested in buying.

Users can now opt to receive push notifications for when they've been outbid, or when an auction they're watching is close to ending. As soon as a watched item enters that threshold, the user gets a message that both alerts them and gives them a quick option to jump back to the item to make an increased bid.

The app isn't just about viewing, though; users can now use it to make payments. Using eBay's PayPal technology--and only PayPal--iPhone users can now make a purchase bid on a new item directly from the device, without having to go back and use a regular computer or deal with the payments in mobile Safari. However, this option does not apply to all items.

If an eBay item requires immediate payment, the purchase bid must be made on a normal computer or via eBay's desktop application.

eBay was one of the first big applications to hit the iPhone, shortly following the release of the device's 2.0 operating-system version, which included the App Store and installable native applications. The company later demonstrated push-notification features onstage at Apple's Worldwide Developer's Conference in June of 2008, an entire year before Apple actually made the feature available as part of OS 3.0.

(via MacRumors.com)

After Amazon experienced some difficulties last week with its selling options in the Amazon Marketplace, it made me wonder if anyone decided to start selling some of their merchandise on eBay. If so, they would join thousands of others who are using the online auction site to make a few extra bucks. If that's your goal, check out some of these services for eBay sellers.

eBay tools

Auctiva Auctiva is a full-featured product that allows you to use a variety of templates and modules to help you sell products more effectively on eBay.

Auctiva is quite powerful. You can create side-scrolling galleries with pictures you upload to the site (you're allowed 1GB of storage), change the color of your listing page, and issue invoices. It won't help you determine if you're selling products that eBay users want, but it will help you easily manage your auctions. Admittedly, Auctiva is for active sellers, but at $9.95 per month for so many nice features, it's an affordable offering.

Auctiva helps you add inventory and track it on the site.

(Credit: Screenshot by Don Reisinger/CNET)

eBay Market Researcher Terapeek's eBay Market Researcher tool is a fine way to determine how to get the most out of your listing.

After you sign up for the site and choose a membership (it costs $24.95 per month or $197.95 per year), you can immediately start searching through the app's listings of eBay products. When you find the product you're looking to sell, it provides you with information on the item's average bid, how much the average listing makes, and how page design affected profits. The app even provides you with information on which day is best to list the product and end your auction. It's a powerful tool.

eBay Market Researcher provides you with a variety of research tools.

(Credit: Screenshot by Don Reisinger/CNET)

PayPal suffered a global outage and slow performance Monday, but eBay said its online payment system is mostly back in working order.

"About an hour ago, PayPal started experiencing site issues that affected the ability to send and receive money. We have all hands on deck to get this fixed," said PayPal spokesman Anuj Nayar in a blog post about noon PDT. "We're really sorry for the inconvenience."

An update at 12:40 p.m. said the site was working again for most users.

Nayar said in an interview the outage was global and the worst of the outage lasted about an hour total, though the site wasn't fully recovered just before 2 p.m. PDT.

$2,000 per second in transactions
The outage could be costly for those who rely on PayPal to handle e-commerce transactions. PayPal says about $2,000 in payments per second flows through the system, meaning that a one-hour outage would cut out about $7.2 million in commerce.

Nayar declined to comment immediately about whether sellers would be compensated in any way or how eBay handled such decisions in the past.

As a key driver of growth for eBay, PayPal is becoming more important at the online commerce and auction site.

"PayPal is a business that will be bigger than eBay," eBay Chief Executive John Donahoe said in July. And through a developer release in July of a new PayPal payment system, eBay wants to refashion the service to enable a new generation of online commerce.

PayPal's developer site said the outage hit not just its Web page, but also through PayPal's application programming interface (API), which lets applications use the service without having to go through the Web site. It first noted the problem at 10:41 a.m. PDT.

Updated with more details at 2:04 p.m. PDT.

eBay wants to spin off telephony service Skype into a separate publicly traded company, but something's standing in the way: Skype's founders are threatening to take back some of the technology amid a licensing dispute.

The auction giant's solution, according to a Bloomberg report on Thursday: build a new one.

This was revealed in a 10-Q regulatory filing with the Securities and Exchange Commission; eBay is not commenting beyond the filing. You can decide whether "Frankenskype" or "Skypenstein" is a better name for the hypothetical creation.

Here's what has happened: Skype's founders have established a company called Joltid Ltd., which still owns the rights to some of Skype's technology. Joltid has made the accusation that eBay doesn't have the right to do everything it wants with all of Skype's code as a result; eBay is suing Joltid to get that technology back. (Is this like the Silicon Valley equivalent of body-snatching?) But the catch is that the trial isn't scheduled until next June, which could put a big roadblock in the way of eBay's plans for a Skype IPO.

So that's why eBay is working on a total rebuild of Skype's software.

There is, however, this little issue. "The new software will be expensive and might not work," Bloomberg's article summarized. "The company said it might have to shut down Skype if the dispute with the founders isn't resolved."

eBay purchased Skype in 2005 for $2.6 billion, but it hasn't proven to be the best fit for the company. Rumors circulated that it was looking to sell Skype, possibly to Google, but then opted to take the company public instead.

Download Skype for Windows | Mac | iPhone | Windows Mobile from CNET Download.com.

Amid stormy economic seas, auction giant eBay has thrown overboard StumbleUpon, the recommendation and "discovery" start-up that it purchased in 2007 for approximately $75 million.

Replacing corny nautical puns with corny alcohol puns, this looks like a symptom of the hangover that followed eBay's acquisition binge during Web 2.0's heyday. Even though many speculated that eBay would use StumbleUpon's technology to power product recommendations, the two companies just didn't find a fit--or a way to make a decent return. eBay's acquisition habits have been more vocally criticized when it comes to Skype, the online telephony start-up that was acquired for $2.6 billion in 2005. It's a well-received product, but never had an obvious niche within eBay and observers have long speculated it would do better on its own.

Financial terms of the StumbleUpon spinoff were not disclosed, but it appears that the company was sold back to the two founders, Garrett Camp (who will serve as CEO) and Geoff Smith, and investors Accel Partners, August Capital, and Ram Shriram of Sherpalo Ventures.

"We are grateful to eBay for its guidance. However, we realized there were few long-term synergies between the two businesses. It is best for us to part ways and focus on our respective strengths," Camp said in a statement. "This change makes it possible for StumbleUpon to continue to innovate and focus on becoming the Web's largest recommendation service."

Last fall, a rumor spread that eBay had hired investment bank Deutsche Bank to help find a buyer for StumbleUpon.

The big question now: Will it do the same with Skype?