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eBay was set on Monday to make access to its application programming interfaces (APIs) free to its more than 21,000 developers for creating programs that enable people to buy and sell things through the online auctioneer's network. Previously, developers paid from $1.25 to $2.90 per 1,000 items listed and an annual fee of $500. eBay also is sponsoring a developer contest with a top prize award of $5,000 for the most innovative application.
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Without applications, eBay will find itself in the same position Apple did in the 80's, when competing against Microsoft Windows. eBay will have a robust platform and a core following of faithful who promote it, while the rest of the world enjoys the diverse, rich and ubiquitous world of Google applications!
Another challenge eBay faces is its management culture. As an eBay Buyer/Seller since 1998 (http://members.ebay.com/aboutme/probizteam), I have witnessed eBay's corporate arrogance take a huge toll on customer satisfaction.
In the past, they could afford to be arrogant, because they had no significant competition. Now that they are facing another "500lb Gorilla (Google)" as a potential competitor, they seem much more humble and willing to listen to customers concerns and suggestions for improving their service.
I'm looking forward to seeing how the developer community responds to eBay's latest API overture. Who knows, maybe the next news we hear is that Microsoft has purchased a stake in Overstock.com and will be providing a .NET framework for integrating Overstock.com with it's Great Plains product line!