The good times are rolling, according to eBay, with reports of higher than expected profits.  EBay CEO John Donahoe comments, "We may have some sellers that make some noise, but we're absolutely confident of the direction we're going."

But there's a cloud in that silver lining -- Mr. Donahoe is alluding to the rising seller dissatisfaction with eBay policies that have undergone several revisions which make the climate more hostile for sellers by charging them higher fees and making it easier to give them negative feedback.  While eBay may deny that this dissatisfaction is affecting its bottom line, it has seen many long-time sellers leave.

Some argue that there's no one on the internet quite like eBay in terms of profile, so sellers will remain despite the poor conditions.  Many sellers are finding other homes, though, on smaller sites like Wigix, Silkfair, Etsy and Oodle. 

These small sites offer perks such as how-to-videos to sellers and charge lower fees than eBay.  Some sellers also find that specific auction sites such as Etsy, which focuses on handmade jewelry, are easier to sell on than eBay's catch-all marketplace.  Cathleen McLain, a 58-year-old jewelry maker who began selling her handmade necklaces on Silkfair early this year after leaving eBay states, "I don't need a million people to see my things, just the right people who have hopefully good taste to buy my things."

One problem with small sites is lack of accountability.  Buyers must beware on small sites as they do not necessarily keep track of seller records like eBay.  Also, most sites don't have a generous return policy like Amazon's "A to Z Guarantee" which insures up to $2,500 in merchandise from being defective or inaccurate.  EBay shoppers using subsidiary PayPal receive 100 percent protection from fraudulent transactions.

Sucharita Mulpuru, an analyst at Forrester Research states, "You're always taking a risk with sellers from sites like these.   Unless there are guarantees or some seller ratings like the ones eBay has accumulated over time, there will always be some bad experiences."

The changes at eBay did drive away Ms. McClain, despite the risks of associating with smaller sites.  She says that other users were considering the shift to Silkfair one eBay message board conversations, where she first got the idea.  The site which opened in March has one trump card over eBay -- it displays much larger images, perfect for showcasing jewelry designs.

Ms. Mulpuru of Forrester Research isn't convinced that the small upstarts can displace eBay though.  She says that many have tried, but only Amazon has ever had any success.  In fact, one in every five dollars spent on the internet still goes to eBay or Amazon, she says.

That's not stopping competitors from trying though.  Another competitive site is Etsy.  Etsy, like SilkFair, focuses on crafts.  One key perk is it offers a slideshow advertising for sale items on the front page.  This is a feature eBay doesn't have.  Also it offers online workshops for crafters and instructional articles on topics such as woodcarving and crocheting.

Another popular eBay alternative is Wigix which popped up last year and was cofounded by James Chong, who helped develop Charles Schwab's original Web-trading application.  He created a site which focused on fix price sales, similar to eBay's "Buy It Now" option.  He says this is advantageous for some over eBay.  The site also allows sellers items to appear on social networking sites partnered with Wigix.

Jerod Husvar, a seller of used-car parts for sport-compacts, decided to move his business from eBay to Wigix due to its perks.  He complains that until recently eBay didn't offer phone support to sellers, and that it would take 30 or more minutes on the line just to get hold of a service representative.  Mr. Husvar states, "We built our business around eBay.  They lost focus. All their money comes from sellers. Buyers are what drive the market, but you need quality and protection for the sellers or else they don't even want to deal with the buyers."

EBay refused to comment on the specific complaints.  It would only say it tries to balance buyers' and sellers' interests.  It also says that the new sites are not a surprise to it and that wise sellers often sell on a number of sites, including eBay.