E Bay Or E Outdated

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E Bay Or E Outdated

  1. 1. By Theodore Lang COM 300 Feb. 2009
  2. 2. eBay (China) <ul><li>The arm of U.S. headquarters in China. </li></ul><ul><li>Acquired in 2003 from EachNet (founded in 1999) </li></ul><ul><li>Once regarded as rival to TaoBao </li></ul><ul><li>Now ranked 2,438 th in China and 49,474 th Globally </li></ul>
  3. 3. TaoBao <ul><li>Founded in 2003 </li></ul><ul><li>Wholly owned subsidiary of Alibaba, China’s leading e-commerce company </li></ul><ul><li>As a C2C trading platform, highest number of product listings, highest volume of transactions (RMB43.3 billion in ‘07, with a C2C market share of 83.9% in China) </li></ul><ul><li>80 million users in China </li></ul>
  4. 4. What’s the Big Difference? <ul><li>Why did eBay fail? </li></ul><ul><li>TaoBao uniquely indicates online status of all sellers with a bi-polar colored icon. </li></ul><ul><li>TaoBao’s search engine enables buyers to list items whose sellers are online. </li></ul>
  5. 5. Interaction! <ul><li>When surveyed, TaoBao had the preference of most online shoppers due to the ability to communicate with online sellers. </li></ul><ul><li>Liked communication channel embedded in C2C platform – no need for another IM program. </li></ul><ul><li>No indication on eBay on whether seller online and use non intergraded channels of Communication such as email. </li></ul>
  6. 6. Indigenous Platform <ul><li>eBay felt to be very international </li></ul><ul><li>No significant adaptation to Chinese context. </li></ul><ul><li>TaoBao feels to users to be 100% indigenous. </li></ul><ul><li>The trust factor a must with sales given high amounts of online fraud. </li></ul>
  7. 7. Reflections from eBay and TaoBao Buyers and Sellers <ul><li>One buyer specified “when I shop in TaoBoa, I only select items from sellers who are online because I like to communicate with the seller and solve transactional problems immediately”. </li></ul><ul><li>“ the icon in TaoBoa helps me filter sellers. By appearing online, those sellers express their readiness to communicate with customers, and so I trust them more. Online status is even more important with me if it is the first time to transact with a seller. It seems that online sellers are more willing to take care of buyers’ needs because they make the communication channel open”. </li></ul>
  8. 8. Discussion Questions <ul><li>Do you feel more drawn to e-commerce sites that allow online interaction (such as chat or forums)? </li></ul><ul><li>What are your grievances with e-commerce? </li></ul><ul><li>Would a TaoBao platform in the U.S. become popular? Why or why not. </li></ul>
  9. 9. References <ul><li>Xiaojuan, Carol O., and Robert M. Davison. &quot;Why eBay Lost to TaoBao in China: The Global Advantage.&quot; Communications of the ACM 52.1: 145-49. EBSCO . University of Washington. 22 Feb. 2009 <http://offcampus.lib.washington.edu/login?url=http://search.ebscohost.com.offcampus.lib.washington.edu/login.aspx?direct=true&db=a9h&AN=36002068&site=ehost-live>. </li></ul><ul><li>&quot;Circuit City goes social: web-site review: new social-networking site shows potential.(ELECTRONIC RETAILING).&quot; Chain Store Age 1 Jan. 2008: 1-2. 22 Feb. 2009 <https://eres.lib.washington.edu/eres/docs/147316/circuit_city_goes_ocial.pdf>. </li></ul>

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