RealTime IT News

eBay Warns of Revenue Risks

All's not well in auction-land.

In an annual report filed with the Securities and Exchange Commission on Friday, eBay warned of numerous risks that its business faces, including its ability to retain buyers and sellers on its sites, in addition to the normal concern of attracting new users.

Attraction and retention were just two of the worries eBay expressed in a laundry list of potential risk factors outlined in the gloomy shareholders' report.

Essentially, eBay realizes that it isn't the only game in town anymore. Citing the "changing demands of the e-commerce marketplace," eBay warned that it was facing increasing competition from Amazon, Buy.com and others, giving consumers more choice -- particularly in its fixed-price business lines.

"Growth rates in our most established markets, such as the U.S., Germany and the U.K., have continued to decline," eBay said. "Despite our efforts to stem these declines, growth rates in these and other markets may continue to decline and may become negative."

The increased worries over customer retention and market competition come with the backdrop of a recent sellers' boycott over changes to the listing fees and feedback policies that incoming CEO John Donahoe