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eBay cautioned in its annual report that it will be challenging to win back former customers while also trying to attract new users to its properties.

The online auction site recently experienced its first major sellers revolt with customers boycotting the site after unpopular changes were made to fees and policies. At the end of the week long boycott eBay saw a 13 percent decrease in auctions

"If these changes cause sellers to move their business away from our sites or otherwise fail to improve gross merchandise volume or the number of successful listings, our operating results and profitability will be harmed," eBay said according to Reuters.

eBay admitted that its auction business will see slower growth in each of its most profitable markets. "We face challenges in the U.S., U.K. and Germany, which are our three largest markets, as growth of listings, active users and GMV on the eBay.com platform in those countries has slowed," the company said in the regulatory filing.

GMV stands for Gross Merchandise Volume, the total value of items and services sold on eBay sites. The company also said its 2008 revenue is on track to grow just 12 percent below the 18 percent analysts had previously predicted.