Abstract This paper is about eBay and how its changing business model will make it the top competitor of the online retail industry. By evolving and changing with the current technology for the better, eBay is able to keep up with the tech savvy consumers that have been using its platform for years. With the change of focus on fixed priced goods, and also a rating system, consumers are attracted to the quick and easy shopping experience of eBay. eBay’s Business Model eBay is one of the largest leading contenders in online auction for quite some time now. Their business model was their pride and joy when it came to interacting with consumers on a daily basis. eBay’s old business model was focused merely on auctions. They had a very large part in an advertising model. Unfortunately, they was these advertisement model worked was with fees. The only way revenue was built, was if the consumer clicked on the advertisement that had that ad embedded. eBay relied heavily on a transaction model that inquired a high listing fee. This fee didn’t come with many upsides. There were low sales commissions from this transaction model. Now, eBay has gotten a better grasp on how they should portray themselves to the consumer. The business model is focused more on fixed priced goods, rather than an auction. They still have the same advertising revenue model however they focus more on non-fee ads. eBay’s transaction revenue model has a much lower listing fee now. For smaller sellers, there is no listing fee. There is also a larger commission for sales with this new model in place. As a growing company, eBay has had many problems that need to be addressed. One of the major problems eBay is facing is the income generated by eBay only increased 2% from the previous year. Consumers start to focus on fixed-price retailers. An example of this is Amazon. Amazon offers an easier and simple method of buying fixed-priced goods. The presence of search engi