text: what are ebay challenges right now? what strategy should the management employ to overcome those challenges?   ebay faces a lot of challenges right now. once it was the darling of internet stocks, but not anymore.  1. its main auction model is slowing as ebay faces maturity = to achieve growth, it will have to do so not with its auction site but its acquisitions such as paypal and ebay. forbes magazine has an interesting article on this   http://www.forbes.com/markets/equities/2006/05/08/ebay-skype-0508markets04.html  2. stiffer competition particularly abroad = early this year, ebay had to scrap seller transaction fees in china due to significant competition from alibaba.com. even in korea, yahoo is aggressively challenging ebay  http://www.redherring.com/article.aspx?a=17139&hed=yahoo+challenges+ebay+in+korea  3. sellers are looking for other (cheaper) channels to sell their products = ebay's fees are continuously rising, and sellers are looking for ways to sell their items. they are flocking to ebay's competitors or creating their own ecommerce site  4. competition from google = google has developed gbuy or google checkout, which is its main challenge to paypal http://www.forbes.com/markets/2006/06/09/google-0609markets09.html