eBay could to do many things to make information which is currently latent to be more easily accessed: allow people to sort by total cost etc.

If they don't add these features, this is an incentive for a competitor, providing a nicer interface.

However, customers have already solved the "problem" of over-charging for shipping, paying low rep sellers, etc. We bid less when shipping is unclear or high. We bid less when sellers are new.

Why, then, strongly encourage (how?) sellers to use (expensive) escrow, when their customers have already self-insured against reputation?

All of that said, I think the points you make do suggest that eBay is vulnerable to competition on features. I have been surprised that open-source has not been able to out-eBay eBay with a peer-to-peer equivalent system.

Perhaps new and evolving features would allow an alternative eBay cooperative to prosper, with buyers and sellers buying shares in the system as a cost of accessing it, but sharing any profits acruing based on turn over. I also think that google could do a good job of eBay, with no commission, just adverts. Google are in a good position, too, to provide anonymous but verified identity.

Obvious new features include:

• Reputation loan: allow high rep sellers to act as guarantors for low rep sellers
• Anti-snipe auctions: optionally terminate auctions n seconds after the last received high bid.
• Lower fees via a micro-payment system that doesn't access "real" money until needed.
• opt-out payment protection: if you don't want to pay for paypal's expertise in risk management, assume the risk yourself for a lower fee.