Very dubious profit making tactics
Its plain and simple, I've used Ebay for years, Its clear as crystal that they are simply happy to profit from ALL auctions, scams included, by their ebay (repeat) listing fees, otherwise via their extortionate PayPal fees.
The evidence is there, they have NEVER made worthwhile attempts at resolving the trust issue, the feedback mechanism remains their primary trust checking point, and it has never been sufficient.
Whilst the suggestions made above are great, I for one would love to see Ebay more liable for losses, it would have to be carried out globally though! I would also argue that Ebay would block this 'legislation' at every point they could. Why? See my first paragraph - theyve got to love the current status quo!
The other simple premise that will keep Ebay from dying a death is that they list auctions that provide people with absolute bargains - and that is all that most people see. Greed is the primary motivator I think for everybody who shops on Ebay over that of a normal shop. That and rare product availability which is always a grey area.
However I'm hoping things are changing, they appear to be, take a look at Ebays share price chart over 5 years! -
A definite downward slope.
I tread extremely lightly when shopping on Ebay, I look for sellers that have traded regularly, successfuly and have not shown any 'pauses' in trading since they started. I dont trade with anybody that have changed their IDs either without close scrutiny and the golden rule is to NEVER buy anything above £50. Over time I'll be lowering it as my confidence reduces.