Looks like eBay is still seeing extreme fallout from their fee hike decision. [here and here]

Now the SFGate/SF Chronicle story does remind us about eBay Seller whining over the years, but this is still a business whose entire existence depends on keeping their sellers and the sellers’ buyers happy. eBay is an intermediary; and intermediaries can and have been replaced before.

I am not saying that eBay will fall soon. However, imagine if Google decided that it could provide an auction clearing/payment system at a much lower cost? Or Microsoft? Or someone else?

eBay has the benefit of a near monopoly position. This makes the battleship slow to turn around when nimbler competitors appear.

Related Posts

• Toolkit for the Technically Aware
• Thoughts about watching the New Tech Bubble
• Microsoft: Scoble Posts Ballmer’s Memo
• 23 Miles of Desperation: Life, work, and emptiness on the East Coast
• READER’S SUGGESTIONS: Need a new Tech Geek Gadget a-go-go Bag