ut of

O
 ebay
• Pierre Omidyar Founder
• Chris Agarpao was hired as eBay's first
employee and Jeffrey Skoll was hired
as the first president of the company in
1996.
Mission
ebay
“To provide a global trading
platform where practically
anyone can trade
practically anything”
 ebay
Velocity of trading
 More than 3 Watches are sold every minute

 5 Women’s handbags are sold every minute

 ebay
 A Diamond Ring is sold every 2 min

 Over 3600 MP3 players are sold per day

 ebay
4,827 fragrance products sold per day

A hair product sold every second

 eBay - A Great Global Business

Presence in
Americas 39 Markets
USA
Canada
Argentina*
Brazil* Asia Pacific
Chile* Australia
Colombia* China
Costa Rica* Hong Kong
Dominican Republic* Japan
Ecuador* India
Mexico* Korea
Panama* Malaysia
Peru* New Zealand
Uruguay* Philippines
Venezuela* Singapore
Thailand
*MercadoLibre sites Europe Taiwan
Austria Belgium
France Germany
Ireland Italy
Netherlands Poland
eBay site Minority investment
Spain Switzerland
Sweden Turkey
7 UK
E
N O
T F
R
Y
 &
 Ebay entered China through purchase of 33
percent stake in EachNet, a leading Chinese
online auction company, in March 2002 for
US$ 30 million
 Later in 2003, ebay purchased remaining
stake for US $ 150 million
 Loss, loss , loss & losses
• From the beginning Ebay incurred losses
• The major competitor is TAOBAO AUCTION CO
• In 2003 Ebay market share in china is 79% but
in 2005 is less than 36%
• In 2006 Ebay market share is less than 29%
• Taobao raised it share from 8% to 69% from
2003 to 2006
 Basic reasons for
failure
• Transaction charges
• Not sync with Chinese consumer buying
behavior
• Layouts are not localized
• All marketing strategies concentrated only
metro buyers
10 Reasons for American Internet
Companies' Failure in China
 10 Reasons for American Internet
Companies' Failure in China

1. Preferring white-collar bourgeoisie VS

Welcoming the mass population
2. To be forgotten VS To be hated
3. Long lasting war VS Quickfire actions
4. Means important VS Objectives important
5. Being users' saviour VS Meeting users'
demand
 10 Reasons for American Internet
Companies' Failure in China
6. Being magnificent VS Being popular
7. Passive promoting VS Active pulling
8. Email, msn communication VS Telephone, face-
to-face communication
9. Elegance and simplicity VS Excitement and rich
contents
10. Recruiting people from similar management
backgrounds VS Recruiting people from different
entrepreneurial backgrounds
 For any doubts
 http://www.nytimes.com/2006/12/19/technology/19ebay.html?_r=1
 http://techcrunch.com/2006/09/26/ebay-bails-out-of-china/
 http://www.chinavortex.com/2007/08/why-most-us-market-entries-fail-in-china/
 http://www.nytimes.com/2010/01/16/technology/16failure.html
 http://www.icmrindia.org/business%20Updates/micro%20casestudies/Business%20
Strategy/MCBS0010.htm
 http://seekingalpha.com/article/27041-ebay-s-tom-online-deal-timely-lessons-for-gl
obal-online-company-managers
 http://bigapplezlp.wordpress.com/2008/01/18/why-us-internet-giants-failed-badly-i
n-china-summary/
 http://www.businessweek.com/the_thread/techbeat/archives/2006/12/ebays_chin
a_cha.html
 http://www.chinatechnews.com/2006/12/20/4760-crying-of-lot-2006-ebay-is-doom
ed-to-fail-in-china
 http://www.chinalawblog.com/2006/12/ebay_how_to_fail_in_china_101.html
 http://www.fool.com/investing/high-growth/2005/08/18/is-ebay-dead-in-china.asp
x
 http://www.time.com/time/magazine/article/0,9171,1096554,00.html