Just came across link for atthani.com which promises to offer online auction system with zero transaction fees. Now site in terms of features have covered most of the things ebay may offer or atleast call the necessary features. But important thing to look for any ebay clone coming in market is to evolve the model further. Now when they are going in for zero transaction fees they could have also made store front zero. Now this may make you think how can the business model survive. Why not try something with google ads or white label with shopping portals coming up online. So if an vendor is offering cannon 7 Mega Pixel camera show an ad from google ads (-ebay ads) showing some other portal offering the product.This could be for the free store version and for paid version you could do without the google ads and offer from dynamic content creation example if someone host a cannon camera you help vendor select if they would like to put comparision products like Olympus or Kodak with further review pulled in from CNET etc.
In era of web 2.0 its about taking advantage of free information and services people would like to offer and collabrate. The smart people build applications over other peoples effort and derive business model value instead of just offering things for free. Other things auction model people can think about is e-payments module and how transaction fees earned on money transfered via portal could be used for sustaining the model.