eBay takes a step back from e-commerce

It has finally dawned on eBay (EBAY) that retail e-commerce is s competitive business with low margins. The company's online payment system, PayPal, has excellent margins. Its VoIP operation, Skype, is a bust.

The relatively new management at the online auction operations has decided it is time for the company to play to its strengths. According to The Wall Street Journal (subscription required), "EBay Inc., a onetime Internet star that thrived with its pioneering auction model, is retreating from its strategy of competing across the board in online retailing as it contends with its own missteps and changing consumer behavior."