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TheStreet Open House

eBay's Woes Won't End With Sellers' Boycott

"eBay is still the best place for sellers who have not achieved scale (required) for Amazon or Google," he says.

Beyond the fee change, eBay is also imposing a new rating system, which will influence the order in which sellers show up in searches on the site and that too could affect eBay's total listings.

A few months ago, eBay began allowing buyers to anonymously rank sellers based on their level of communication, shipping times, shipping and handling charges and the accuracy of their auctioned items' descriptions.

Next month, the company will use those rankings to sort which sellers should appear first in the site's search results. High-ranking sellers will rise to the top while low-ranking sellers will fall to the bottom.

But Brown points out that high-ranking sellers aren't necessarily eBay's biggest sellers, so listings have a potential to fall.

"One of our concerns around the stock right now is the tremendous amount of uncertainty," he says.

Boyd agrees that there is still a lot of unknowns about eBay right now. But at the same time, the company had no choice but to make a move, given the rising competition surrounding it.

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