eBay needs to attack this issue of trust head-on first and make the most of turning around their reputation for accuracy, reliability of transactions, transparency and vetting of buyers and sellers if they are to preserve their reputation.
When all of these factors are taken into account, including the lack of platform focus, the purchase and resale of Skype, the lack of focus on being an exchange over a platform and the lack of trust in their transaction engine, eBay has a full agenda of competitive issues to deal with. Instead of concentrating on the minute details of their auction engine eBay management instead needs to consider how they can scale to be the platform of choice for e-commerce globally and also how they can dominate pricing analysis and pricing recommendations over time. Unless they become strategic they will eventually be acquired.
References
Bapna, R., Jank, W., & Shmueli, G.. (2008). Consumer Surplus in Online Auctions. Information Systems Research, 19(4), 400-416,516-517.
Bruell, a.. (2010, January). Kijiji gets moms on board in effort to rise above classified competitors. PRweek, 13(1), 51.
Cabral, L., & Hortacsu, a.. (2010). The DYNAMICS of SELLER REPUTATION: EVIDENCE FROM EBAY. The Journal of Industrial Economics, 58(1), 54.
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