History of eBay in China
•1995 established C2C & B2C online/virtual marketplace in
•2002 entered China purchasing 33% of Each Net.
•2003 eBay acquired the remaining shares for eBay Each
•Competitor TaoBao was founded in 2003.
•Integrated into e-bay global in sept 2004.
•Considered to be the no#1 e-commerce site in China.
•Alibaba the leading player in the Chinese market and
claimed to own the largest B2B e-commerce site and was
founded in 1999 by an English teacher.
•2005 Alibaba forms partnership with Yahoo resulting in
TaoBao becoming wholly owned subsidiary of Alibaba.
•2005 eBay acquires Skype expanding into online
•2006 eBay announces joint venture with TOM Online.
• In 2006, eBay was in the midst of merging with a
Chinese based company, TOM Online.
• deciding which strategy would be better to
increase revenue growth in China.
• leveraging a merger with TOM online or
considering alternatives such as investing in its
current product and services offerings to
reposition the brand.
• Alternatives that e-bay have for enhancing its
strategic position in the Chinese market.
• Is point se woh DOT-COM BUBBLE waley ke
points start hongey jo tum lougoun ne karney
Dot-com bubble crash
• Many investor were willing to invest in the dotcom projects
• During boom NASDAQ contineu to rise, peaking at 5048.62 in 2000 but it
fall in 2003 to 1114.11
• Many dotcom companies close down
Causes of dotcom failure
• un-realistic expectation from internet
• Enterpreneure were computer programmer and do not have any business
• Lack of product diversificstion
• Inadequate marketing and operational strategy
• Misuse of funds by managers
• Issues of reliability and trust
• Other problems (connection, technical issues)
Company Background and development
• Founded in September 1995.
• eBay is The World's Online Marketplace for the sale of goods and
services by a diverse community of individuals and small
• eBay is a community that encourages open and honest
communication among all its members.
• eBay community includes more than a hundred million registered
members from around the world.
• People spend more time on eBay than any other online site, making
it the most popular shopping destination on the Internet.
• there are millions of items listed on eBay.
• People come to eBay to buy and sell items in thousands of
categories from collectibles like trading cards, antiques, dolls, and
house wares to practical items like used cars, clothing, books and
CDs, and electronics.
• Buyers have the option to purchase items in an auction-style format
or items can be purchased at a fixed price through a feature called
Buy It Now.
e-Bay’s Growth and Global expansion
• People from all over the world buy and sell on eBay.
• Improving trust and safety .
• Extending product offerings into new formats, categories and
• Focusing on improving the user experience to increase buyer
• Building new user communities solely through internal efforts by
launching regional sites in the US or localized, global sites which will
all be managed by local management teams and online marketing
• By 2006 e-bay has expanded into 35 global markets across North and
Latin America, Europe, and Asia Pacific.
• In addition, eBay has a presence in Latin America through its
investment in MercadoLibre.(a Latin American auction site).
• By the end of 2006, e-bay was boasting 14% market share in the e-
commerce market globally.
Product/Service Offerings at E-bay
• Sellers could list products/services for the sale.
• Buyers could browse through these items and bid on those in which they have an
• At no point in the transaction, eBay take possession of the items.
• EBay only facilitates person-to-person transactions between buyers and seller
• EBay assume no liability of the sale.
• EBay did not need to invest in inventory since the items auctioned on the site
remained the property of the seller, hence risk and cost is further reduced.
• Sellers were charged an Insertion Fee when they listed an item for sale, non-
refundable & ranged from 0.03$ to 3.30$.(depending upon the opening bid).
• Sellers need to pay a percentage of the final selling price to e-bay, ranging from
1.25% to 5%.
• EBay express, allowing for speedier selling and buying experience since
transactions could be completed without waiting for the auction period to expire.
• Sellers could also run their own online businesses by listing items on customised
pages at a lower insertion but higher final value fee than regular auction( fixed-
price) for a minimum 30-day listing period.
Customer Services and Support
• Faster Shipping time.
• Low item price.
• Low shipping cost.
• Clear description of policies
• Feedback forums.
• “VeRO” verified rights owner and SafeHabor program
that enhance safety on eBay and trust among its users.
• “VeRO” protect buyers from purchasing counterfeit
• SafeHabor ensures a harmonious environment for eBay
users and provide guidelines for training.
The Chinese online c2c market and its development
China economy growing in leaps.
Chinese internet users ballooned to greater.
Chinese consumer had access to the internet and thus online
shoppers are growing rapidly.
Transactions from C2C e-commerce has reached US$2.9 billion.
Lack of “trust” as non-local company with short history
Chinese governmental regulations are reducing.
• FOUNDED IN 2000
• Shareholders include tom group and hutchison
• Alliance with Nokia and Motorola
• Created Chinese version of Skype
• 2006 jontventure between e-bay and tom online
• E-bay can conduct commerce through mobile devices
• E bay regain its market share by this joint venture
• Tom online ( a market leader) expand and diversified its
business by this joint venture