It also got into the online payments business with its acquisition of PayPal, which generates about one-third of the company's revenue, and into Internet telephony with Skype.

Along the way, Amazon.com has expanded its focus into eBay territory by allowing merchants to sell their products from its Web site and providing e-commerce services, like fulfillment.

Now eBay will take a more hands-on approach toward its marketplace rather than simply letting merchants and shoppers work out their differences, trusting in the collective wisdom of its community.

"We're moving to a more managed marketplace," said Donahoe, who took over as CEO from Meg Whitman in March 2008.

Those words should please those merchants who have complained in the past that eBay has been lax and timid in enforcing rules, which in turn has caused trust in the marketplace to erode, scaring away shoppers.