Thursday, August 18, 2005

Is eBay Dead in China?

From The Motley Fool: Is eBay Dead in China?

"Earlier this month, when Yahoo! announced that it was making a $1 billion investment to obtain a 40% stake in Chinese auctioneer Alibaba.com, even some of the most ardent eBay bulls probably got nervous (China Net Investor: Alibaba operates the consumer-to-consumer auction site TaoBao.com). It wasn't so long ago that Yahoo! had hooked up with Softbank to squash eBay in Japan."

"It's not going to play out quite that way this time."


  • "As a free site, TaoBao suffers from many of the same shortcomings that Yahoo! Auctions does domestically. Because it costs nothing to list an item, it's a haven for spam and unrealistic starting bid prices, just as eBay's own American site becomes a clutter of noise when it rolls out the occasional free-listing day. That just proves that the quality of traffic is just as important as the quantity."
  • "Earlier this year, TaoBao's grasp on the market was at 41% to eBay's 53%. They are both strong. History dictates that just one consumer auction site will reign supreme in any given country, but history can be a schmuck sometimes. China's Internet boom is in its infancy, with 1.2 billion of the country's 1.3 billion residents still not connected. Why can't there be two dominant players in a country that is many times larger than most nations?"
  • "One of the grandest misconceptions out there is that eBay failed in Japan. A more accurate description would be that eBay never had a chance to get started. Yahoo! had teamed up with Softbank in 1999 to launch its auction site well before eBay had even stepped foot on the rich country's soil. When eBay gingerly tried to enter the market, it got nothing but jet lag. It was toast.
    That's not the case in China. TaoBao wasn't even around when eBay had acquired its first stake in EachNet three years ago and swallowed it whole in 2003. This isn't eBay's battle to win. It's eBay's battle to lose."
  • "If TaoBao succeeds, it won't be because it toppled eBay. It will be because it found a way to coexist. The pressure now rests on TaoBao and the strategy it takes in the future. The company has mentioned that it may start charging for auctions as early as next year, but I'm not entirely convinced that it will happen."
  • "China's potential is huge. It's why eBay can't afford to lose."

Read more:

China's New Internet King: Alibaba CEO Jack Ma

Yahoo! Positioned to be one of the Major Internet Entities in China

Fact Sheet on the Alibaba-Yahoo deal

8 Comments:

At 4:15 AM, Blogger Peter said...

OVER 1 MILLION WHOLESALE PRODUCTS

at Low Factory WHOLESALE Prices in the U.S.

and Around the World!



From The Best Manufacturers, Exporters,

Wholesalers, Drop-Shippers and More!
ebay
Profit from selling Thousands of Products at

yard/tag sales, flea markets, auctions,

newspapers car boots etc! ect!

http://massivesavings4u.com

ebay

 
At 6:57 AM, Blogger cc Infopage said...

Hello,

I am searching around for fresh information
for my cc Infopage, 30,000 daily updated Information Pages about all kind of subjects.

It might interest you to know that your blog has been visited and has been read. I hope you enjoy your "Blogging".

I wish you all the luck I can, keep the good work going!

Kind regards,
Jos
Today's News About eBay

 
At 9:55 AM, Blogger cc Infopage said...

Hello,

I am searching around for fresh information
for my cc Infopage, 30,000 daily updated Information Pages about all kind of subjects.

It might interest you to know that your blog has been visited and has been read. I hope you enjoy your "Blogging".

I wish you all the luck I can, keep the good work going!

Kind regards,
Jos
Today's News About eBay

Get the eBay Business Box Today

 
At 2:20 PM, Blogger harvey3 said...

Hi great blog i must remember to bokmark you ... I have a horse racing blog myself I also have a new Online Auction to tell you about here auction template get yourself $35.00 worth of free Advertising auction template

 
At 9:59 PM, Blogger doer said...

Hello, just visited your blog, it's informative. I also have a Eay related web site. Please visit and hope that it's useful.

 
At 9:03 PM, Blogger cc Infopage said...

Yahoo News

Microsoft, Yahoo Reportedly Ready To Link Instant-Messaging Services (TechWeb via Yahoo! News)
Microsoft and Yahoo are expected to announce Wednesday interoperability between each other's instant messaging service, a move that could dramatically change a market that's been dominated by America Online Inc., a newspaper reported.


Today's News From & About Yahoo


cc Infopage: 30,000 daily updated Information Pages about all kind of subjects


PS: To get more, just click the links

 
At 4:52 PM, Anonymous Anonymous said...

Very cool blog you got! I just added you to my bookmarks!

I have a great article resource you might want to check out.

 
At 11:26 PM, Blogger blogsurfer said...

Hi, I was just blog surfing and found you! You have a pretty cool site. If you are interested, go see my cool ebay auctions site. Can you believe people really sell this stuff??

 

Post a Comment

<< Home