Saturday, February 16, 2008

eBay sellers strike next week

After the hollywood strike, we now get an eBay seller strike. Sellers on eBay are going on strike next week to protest a change in fees, feedback and search policies. It wasn't too long ago that eBay was considered a lock-in for longevity and their business competition was floundering. But in the recent year, more and more smaller, niche sites are closing in and making for good competition.

This threat to eBay's business can actually be good for eBay's long term prospects. Competition can push a business to do better. Competition can also serve as a wake-up call to businesses that are no longer as exciting and innovative.

eBay is also big enough to buy out smaller competitors like StubHub which was a smart investment for eBay considering how successful the ticket selling site had become. The recent resignation of eBay's CEO is a signal that eBay is ready to chart a new course after almost 10 years of comfortably being the largest *store* in the world.

Just to round out some of the threats to eBay, Amazon is the surprise sleeper hit. While eBay was enjoying its comfortable leadership status all these years, Amazon was busy building out its technology infrastructure and now they're not only positioned to take on eBay's business, they are also becoming a force in the web services arena --- see Amazon Web Services.

Also hear from long-time eBay sellers who have switched to other services to sell their wares --- eBay backlash: 5 sellers who ditched it.

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