Can eBay Continue Growing?

2. What are the problems that eBay is currently facing?

eBay is facing a considerable more amount of problems than what I had imagined.

a. Its growth rates have slowed in the United States and Germany, but that is being offset by the increased revenue received within new markets. However, it is still trying to make an impact in the Chinese online auction market.

b. eBay has had trouble penetrating certain consumer markets including; real estate, travel, new-car sales, and expensive collectibles. It hopes that it's new VoIP technology will allow for better communication between buyers and sellers in these markets. Many top sellers aren't interested in adding voice calls to their sales models.

c. It has become difficult to monitor compliance with the variety of laws and regulations that apply in different jurisdictions. eBay may be liable if its members sell unlawful goods or defame one another in eBay's Feedback Forum.

d. Its largest challenge is to keep honesty and integrity within its auctions. Some buyers have stated that eBay does not do enough to prevent sellers from collecting inflated fees for goods that are not legitimate or do not exist. Other users complain how eBay hasn't tackled the problems of identity theft and fraud on its website.

e. eBay has the continual problem with satisfying two opposite types of users; buyers and sellers. Customer service suffers as a result.

5. Will eBay be successful in the long run? Why or why not?

Yes, I believe that eBay will be successful in the long run. It is addressing the number of challenges it currently faces with probable solutions. Its growth relys on the continual enhancement of technology available. Recent partnerships have offered beneficial technology to the eBay community including eBay Community Wiki and MyCollectibles. eBay also makes a special effort to keep in touch with its users by hosting meetings of buyers and sellers to address issues. Overall, the value of its service bears out the inconveniences and drawbacks. Many users are more comfortable with eBay's name and service over other online marketplaces. eBay has to focus on keeping the eBay community happy and loyal by making them feel secure and providing them with the latest technological capabilities.