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Innovation is one of the key to organisational success and long term sustenance. The objective of this study is to discuss about how eBay can position itself in the changing e-commerce sector or e-market place. The study has revealed that the e-commerce sector has become highly competitive in nature, which as a result has made it quite difficult for the company to establish a strong position in the market. It has been further studied the eBay has taken significant innovative approaches to add more values for the customers and the stakeholders. However, it has faced significant challenges in terms of revenue growth. It has been recommended for the company that it should use new disruptive innovation such as integration of three dimensional pictorial presentations of products and using VR as a new platform to create a virtual market place. It has been finally concluded that these strategies will help the company to stay ahead of the competition by gaining a first mover advantage, thereby fostering growth and long term sustainability. Introduction The global business environment has shown gradual changes over the past decades. The industries have become highly competitive in nature as an increasing number of firms have come to operate in the markets. Moreover, the demands and preferences of the customers have also changed over time. They are constantly looking for new product and service experiences (Liao, Kickul and Ma, 2009). In order to meet the customers’ demands the firms are constantly seeking out for innovative ways to design their value propositions. In this context, the existing firms have also realised that they need to adapt to the changing macroeconomic factors and consumption trends to make sure that they can maintain their position in the industry in terms of market share. The e-commerce sector has shown promising prospects in terms of growth and popularity (Hong and Zhu, 2006). Large number of companies has opened their own e-commerce wing to reach out to large number of customers. Companies like Amazon and eBay have adopted e-commerce as their mainstream business strategy which has proved to be quite lucrative for them. This paper is focused on the discussion of how eBay can position for the changes in the e-marketplace. It covers innovation theories, based on which the proposed strategies have been designed for the company. Background Information The e-commerce sector has shown significant growth owing to the rising popularity of the internet and development of secured online transaction processes (Statista, 2016c). The increase in the number of internet users has made it easier for the e-commerce companies to increase their customer base. The reports of Statista (2016a) have shown that the number of e-commerce users have increased significantly over the past years, which have resulted in the growth of this sector and have increased its attractiveness for the firms. The companies have started to use the e-commerce platform to attract the customers and increase their volume. This as a result has increased the competitive threats for the mainstream e-commerce retail companies like eBay.

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