eBay’s China Syndrome

9 thoughts on “eBay’s China Syndrome”

  1. Ebay India charges no insertion fees too. And its been that way for the past what, 8 years? There has never been any viable(or unviable) competition to ebay in india but evenso, ebay india is still finding it difficult to drum up business. Atleast china has a humongous internet population which is getting comfortable with commerce online. In India, the ebay population numbers between 1-1.5million and most of that is in lower end(1-5 $.) There is also no paypal in india.

    ebay cannot afford another case of ebay japan because there is no other market with china’s potential. Very interesting documentary broadcast on cnbc a while back. http://www.google.com/search?hl=en&q=ebay effect cnbc

  2. eBay bought eachnet for $250M with $500k in revenues (which is about what they have today) and the only guys who made money were the founders and investors who really pulled one over Meg’s eyes. They laughed after the deal was signed. ebay won’t work in china and they can never compete against the talented people that alibaba have. there are many competitors in this space in china and even more so in regional provinces. A national play is very very difficult in China. Also, forms of payment are still cash and people will always meet to make the ‘trade’. Anyways, why would anyone in china buy something used when they can buy it new for the US “used” price?

    ebay china is now an offshore development shop for ebay US. I think they have given up trying to make money from the local market. In fact they do a lot of new development like search algorithms and so forth out of shanghai. I think they realize that their only growth is from increasing prices in the US since Asian efforts have failed and new mergers like Skype failed to drive revenues. I always wondered if someone at eBay got a kickback for that deal??

    So the consumer, now, must bear the brunt to meet stockholder expectations in short run because of poor decisions by management. So it is only a matter of time before customers switch for cheaper options.

    Whatever happened to simple business strategies like providing the best customer service at the lowest prices?

  3. this is exactly what the folks at Yahoo and Google wanna hear: “hi, can I move my store to your neighborhood? ebay jacked up my costs.” sure. no problem.

    ebay stock gets more bruising–makes a new 52 week low of 24.05, and spurred a selloff of at the money options.

    Meg Whitman is part of the new company plan?

  4. Six percent… yes… six percent of NET PROFIT. It’s not a six percent increase over what it was before, it’s a decrease of six percent of eBay Stores sellers net. Imagine your local city charges an 8% sales tax, and raises it to 14%, so they can subsidize a city works project in China…

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