A new option on eBay is having items delivered digitally to buyers.   Whether its music, ebooks,  digital photos, or any other digital file, you can now sell items to the millions of eBay members through your own digital delivery.  This  has actually always been possible, but  now it's much more convenient for buyers and sellers on the eBay site, and eBay is facilitating the transaction instead of it having to completely take place another website. 

There are a few sellers who have begun selling digital music downloads on eBay.  The larger ones are selling Windows Media Files that are somewhat protected so that you aren't able to convert them to another format and you can only burn them to a limited amount of discs for storage.  These sellers are working with some of the larger record companies to get the artists products on eBay, but the process in place from the buyers perspective is cumbersome, to say the least.

Some sellers actually sell MP3 files on eBay, and some are actually the artists themselves.  Since MP3 files can play on almost any computer with an audio player, this is a great option for musicians, as well as instructional audio in many arenas, as well as audio ebooks, and so on.  Anything that can be put to audio can be sold as an MP3, Windows Media, or other audio file type.   However, I think that MP3 files are probably the most recognized and compatible file type (though they must be converted to work with an iPod). 

If the item is listed as a digital item on eBay, it must be a fixed price or store inventory item and payment must be via PayPal, and can be immediate payment only.  This is a good thing because once the buyer commits to purchasing the item and completes payment, they are given a link to the downloadable file location.  I suggest hosting your items on your own website or server, and using a password protected option or hidden link to where the buyers download the media.  Or you can also change the link after every purchase, but that would be pretty time consuming if you are selling many items.

There are easy and hard ways to go about it, and depending on your resources, you can sell quite a few downloads on eBay.  It isn't something that people are searching for, because consumers don't relate eBay to digital music purchases - yet - but it's a distinctly open market for musicians to be able to do it. 

eBay recently opened up some options for seller to list items with digital delivery, and you can find out more here:
 
Digital Item FAQ

This goes over a lot of great information for sellers looking to sell not just downloadable music but digitally delivered goods period, i.e. ebooks, photos, recipes, etc. 

The biggest thing to be aware of is that you need to be the verified rights owner or your listing can be removed.  If you are a rights owner and you see your items posted without your consent, you can become part of the VeRO (verified rights owner) program and report the infringing violations to eBay to have them removed.  Find out more about VeRO at the link below:

VeRO (Verfied Rights Owner)