Don Reisinger points out that Ebay is only surviving at the moment because there’s no competition. I’d tend to agree. Here’s the thrust of it:

eBay has lost its way and the only reason it’s able to enjoy these profits is because there’s no company out there that’s willing to compete on such a grand scale. But why not? eBay is obviously worried about the future and auctions are still a viable way to buy products. If a company came along that finally revolutionized online auctions, the entire landscape of the business could be changed forever and eBay would be long forgotten.

eBay is poised to enter the junk heap of tech if it doesn’t do something quickly. It may seem like a company that has longevity written all over it, but trust me, the chances of eBay staying around for too long while maintaining this strategy are slim.

Sadly, it’ll only take one competitor.

He goes much more in depth in the actual article, so go ahead and read it rather than reading me blathering about it.