Is it safe to buy software on EBay?

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Summary: Software on EBay is often deeply discounted and very lucrative. The problem is that those deep discounts sometimes indicate issues to be wary of.

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It is possible to safely purchase software on EBay. I've done it.

It's also possible to end up with unusable or illegal software, or simply get scammed out of your money.

In exchange for the money you're saving, you need to invest a little time.

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The key to successful purchasing on EBay is, in my opinion, spending time carefully reading and understanding the description of the product you are considering purchasing, and carefully reading and understanding the feedback left for the seller you're considering purchasing from.

I did a quick search for "Windows XP" on EBay for this article.

All the versions I found were "OEM", meaning that they were originally intended to be sold with a new computer by a manufacturer such as Dell, HP or others. In fact, if you look at the photos of the Windows XP product, you can see that they're shrink-wrapped envelopes that look very similar to the exact same envelops that come with many OEM machines. If the operating system is pre-installed, many people take the shrink wrapped media and sell them on EBay.

I would avoid OEM versions of Windows on EBay for several reasons:

• The seller is likely in violation of the operating system license, as the OEM disks are for sale with a new computer only, and may only be installed on that one computer. Some vendors try to get around this restriction by including some piece of hardware with your purchase that may or may even not be working or useful. (I was surprised at how blatant this was.) Thereby they've not sold Windows XP alone, but rather "with non-peripheral hardware" which they believe complies with the rules.

• If these are in fact OEM disks from pre-installed systems, the product key is, presumably, already in use on those systems. You run the real risk of not being able to activate Windows once you install it, as the activation process checks.

• The OEM version might have differences and/or customizations specifically for the vendor it was originally intended for. It may not work completely on your hardware.

While it's conceivable that some of the OEM versions of Windows XP might be legitimate, the reselling of OEM versions is just too risky for my blood. I would avoid it, period.

Make sure you read the product descriptions carefully. Make sure you know exactly what it is you're purchasing. Unlike a standard retailer, you often have little recourse if the product isn't what you expected. Read the shipping and return policies as well and make absolutely certain that they're to your liking.

And if they seem to be playing games (like shipping unnecessary hardware), to be dancing around some rules, walk away.

Which leads us nicely into feedback.

Almost all feedback on EBay seems to be positive, which in my mind negates some of its value - it's hard to believe that every seller, or every transaction is perfect. That being said, there are a few things to watch for in evaluating the feedback logged against a seller you're considering doing business with:

• Make sure that you're looking at "Feedback as a seller". The total feedback score appears to include both selling and buying transactions, so it's easy to get what looks to be a stellar reputation simply buying things. One of the Windows XP sellers I located had lots of positive feedback, but none as having sold anything. That makes this person look good, but tells you nothing about how he behaves when selling.

• Make sure that the feedback is recent, and that there's enough of it. Several hundred items of sales feedback is typically good, but it's concerning when they were all last year, and only a few or infrequent sales occurred within the last 3 months.

• Make sure that the seller's been around a while. An account created last week hasn't had enough time to build the positive reputation you want in order to feel comfortable doing business.

• Watch for feedback stuffing. A series of feedback entries that appear identical, or are all from the same buyer should be taken skeptically.

I'm certain that there are great deals out on EBay. I know that many people have made a lot of money there, and have purchased valuable, legitimate items at substantial discounts.

Particularly when it comes to software, however, I think it's important to be extra cautious because we know that there are several ways that the system can be abused.

Yes, I've purchased software on EBay - exactly twice, and specifically to purchase versions of software that were simply no longer available any other way. I much prefer to pay perhaps a little bit more to do business with traditional, reputable retailers like Amazon, Fry's, Newegg and others, with whom I have direct and repeatedly positive experience.

I want to know what I'm getting, and know who I'm getting it from.

Related:

• What's OEM software? Is it safe to buy? OEM Software is heavily advertised, often in spam, at prices much cheaper than retail. The problem is that OEM software is often illegal.

• I don't have an installation CD for Windows XP - what if I need one? At some point you'll need your Windows installation CD. If you don't have one, you could be out of luck. Be sure to get one and keep it safe.

• Can I install Windows XP using one manufacturer's CD on a different PC? Installing Windows XP using one manufacturer's CD on a different manufacturer's PC might sometimes work but it's not guaranteed at all.

Article C3892 - October 16, 2009