With the worlds’ technological advancement there has been an expansion in the market place enabling trade transactions to be carried out online at an international, national and also at a local level. A dominant online platform has been created on EBay for the trade of both goods and services by many individuals in large and small scale businesses through localized market sites in Asia pacific and North America.Properly guided by its fundamental values, eBay believes in people as an important resource and encourages respect for every one. On the Porter Five Forces Model analysis most of the customers are enslaved by the offers made by different people making it very hard for them to make their own choices.

This is so because there is a widened gap in the product range and also accessing information on eBay could be very hard to get since most people are not frequent users of the internet.Customers are also influenced by individuals online who have had previously made transactions with the company as their decision is based on the positive results of the services provided. On the other hand it could be very suitable and very simple to use for those who are regular visitors to the net keeping in mind that it is hassle free. There is lack of confidentiality especially when it comes to issues relating to financial security since most people prefer keeping their financial status a private and confidential affair.Many also fear releasing their personal details with the use of the net as there is no personal contact of the buyer and the seller.

(Chan, 2006) It is also very easy to place and access orders over the internet all round the clock without any limitations. The suppliers are a major influence in the eBay and they determine the price ranges for the goods or services traded. Suppliers also face a huge problem of supply shortages and this affects their transactions as they could end up loosing businesses to their competitors.The suppliers have a hard task of ensuring that the good or services demanded are available or there is an alternative for the same also maintaining consistency.

New entrants to the market are a threat to the already existing companies since they tend to broaden their products spectrum and improve their trade policies as they provide better services to the clients. It is a great challenge to the markets new entrants since they require huge amounts in setting up the companies and also the costs of advertising are similarly high.The products brands are equally important since the customers opt for the best quality that will give them good service for a long time. (Hart 1981). Substitute products pose as a threat to the original products since they make the originals products reduce their sales as those for the generic escalates. It is easy to purchase a product whose standards have been compromised since the transactions are made online and there is no face anonymity and one can’t verify the quality of the products they want.

Competition has been on the increase and rivalry between the competitors in the same industry greatly enhanced. Ebays has a greater task of ensuring that its declining traffic stabilizes since it has had a great influence in the economy empowering a lot of people to transact online at their convenience. There are major challenges facing eBay as its monopoly diminishes with online auctions and the sellers look for alternatives from upcoming companies.