[photopress:eBay_EachNet.jpg,full,alignright]As reported here eBay is backing out of China — it has already backed out of Japan. It shutting down its main Web site in China and replacing it with a site that will largely be run by Tom.com, a Beijing-based Internet company. This according to The Wall Street Journal.
Fascinating to see that serious PR spin is being used to say that eBay is not retreating from China — goodness me, from whence did you get that idea? — rather that is approaching it in a different way.
The straight fact is that eBay did not make it with its EachNet. China Internet Network Information Center states TaoBao had 67% of the Chinese auction market for the first six months of the year, compared with eBay EachNet’s 29%. And the situation was getting worse.
eBay management did not seem to be able to get its head around the fact the public will go for a free service over a paid one every time if the two are roughly equal. Even with the collaboration with Tom.com, which will be running the site, it will still be dragging its feet if it continues to use the charging system that has served it so well in the United States and elswhere.
eBay acquired online-auction company EachNet for 150 million dollars in 2003. It would have done better to have kept the money in its pocket. It is retreating from China to lick its wounds.
Source: China Daily