Economic Downturn
When it makes its acquisition, alliance, and innovation decisions, eBay first considers the environmental factors that may influence its success. The increasing unemployment rate and the mortgage crisis have also contributed to a decline in disposable income. This may increase the number of sellers on eBay as those who are unemployed seek ways to make extra money, but fewer people are buying, and those who are demand low prices.Thus, in September 2008 eBay lowered fees on fixed-cost sales by more than 70 percent in an effort to better compete with Amazon.com and starting in June 2009 infrequent sellers will be able to offer up to five items every 30 days without paying a listing fee.