EBay shutdown its Asian Web sites realizing that China and Japans, fast growing internet auction market was difficult to master. Also, eBay did a terrible job of marketing its services with the intent of becoming the major leader in the Asian auction markets. Moreover, eBay made the same error that most foreign companies did. The company faulted in developing its web site into a consistent Asian template. Ebay thought that its leading brand image would have the same effect in Asia as it did in the United States.
Ebay shutdown its main Web site realizing that China’s fast growing internet auction market was difficult to master. The decision was also seen as a sign of the pressure Chinese government regulations put on foreign companies to set up joint ventures, even when they may be reluctant to do so for fear of helping to turn their Chinese partners into global rivals (Hafner, Stone, 2006).
Unlike eBay’s then competitor TaoBao, the company initially charged listing fees. Surprisingly, eBay’s listing fees were not one of the top reasons consumers used TaoBao over eBay. Chinese consumers preferred brands they were familiar with and from people whom they trust. Many critics argue that high prices are the main reason for eBay’s failure (China Market Research Group, 2007). The same critiques believe Chinese consumers prefer free or low cost choices.
EBay should have offered free services with the intent of becoming the major leader in China’s auction market. Also, one of eBay’s goals should have been to make the Chinese consumers comfortable buying and selling on the internet.
Additionally, eBay’s payment system, Paypal, did not faultlessly include escrow into its auction procedure. H ...