Saturday, March 01, 2008

eBay Facing More Business Challenges

eBay Inc warned shareholders in its annual report on Friday that it faces difficulty getting former customers to return, adding to the normal challenge of attracting new users to its sites.

The significant changes made in January in fees and policies on its marketplaces have been controversial with many sellers. The backlash cultivated a recent strike by sellers, which reverberates what eBay has told its shareholders. Sellers are simply moving to other options such as

"If these changes cause sellers to move their business away from our sites or otherwise fail to improve gross merchandise volume or the number of successful listings, our operating results and profitability will be harmed," eBay said.

It looks like the auction giant might want to rethink some of their recent policy changes.

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