RSSSources: eBay to Close Chinese Site
By Ed Oswald | Published December 18, 2006, 5:57 PM
eBay is reportedly pulling out of the Chinese market, instead opting to replace it with a new site that would be run by Bejing-based Tom Online, sources told the Wall Street Journal Monday. So far, the auction site has refused to confirm the speculation.
The San Jose, California-based auction site will have a 49 percent stake in the new operation. A deal could be announced as soon as Tuesday. Both companies plan to invest $60 million in the venture, with eBay contributing $40 million of that total.
If true, it will mark a huge setback for eBay, as it has aimed to grow its business by pursuing an aggressive international strategy.
However, eBay's performance so far in China has been less than stellar. Even though it is the second largest Internet market behind the United States, only three percent of all listings originate from there.
A new site will not launch until next year, and in the meantime the website will continue to operate for international auctions. However, the main site will be closed down, the WSJ says. No announcement on a new identity has yet been made.
Requests to eBay for comment had gone unanswered as of press time.
Last time I checked China was still a communist nation. Their so-called thriving economy is artifical and mostly fueled by counterfit knock-off's of real american/european merchandise. There is no real innovation there. I pitty people who think it's smart to do business with the red chinese. Lets not forget that, the Red Chinese....
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The biggest problem is the credit infrastructure in China. China has its own auction site: www.taobao.com, with free listing, and integrate with Chinese banking system, and it also has its own version of 'pay'pal. The listed products there is enormous.
All these are non match for ebay. As of now, listing in ebay.com.cn will be costly to most Chinese vendors, and paypal can not do US$ to Chinese Yen conversion, and you will have to use a special stripped down version of paypal.cn (Chinese Yen exchange only).
And result? Ebay will fail.
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3 percent? Really? It seems like every other item I search for pops up from China. It's annoying, because most of them are scammers that mark their item as something like $1 but then making you pay like $200 in shipping more than a north American seller.
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Shopping in China. Sounds like an oxymoron. Buying Chinese goods OUTSIDE of China is one thing, but inside China? Let's see... I'd like to buy a sweater... which size Small, Small or Small? Color: Gray Gray or Gray with the Red Star or with the Red Star. Oh wait! Someone actually clicked on the Blue Star? Report them immediately!
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Your ignornace never fails to impress. Have you ever been to China? It's doubtful you have ever left the US, and the only thing you know about the outside world, is the one sided view than CNN force feeds you.
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Actually, he sounds more like someone raised on Fox News. "[Never] left the US"? Heck, he probably has never left his hometown.
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There is no easy way to pay online in China. If people in the US had to go to the bank and transfer money, EBay would not do much business there either.
All these companies make the mistake of assuming China has the infrastructure of the west. It does not.
Geez, can I be a consultant for these ignorant jerks? I have a hot tip for free. When you want to do business in China, do not hang out in Beijing or Shanghai. Get out in actual China, go shop in the stalls, eat in sidewalk stands. You won't make so many stupid decisions then.
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