eBay Partnership to Boost China Operations
In a recent press release, Global Sources Ltd announced it is teaming with eBay to help create online distribution services aimed specifically at manufacturers in China.
The deal will allow Global Source’s clients to promote their products through the eBay EachNet Web site in China and further expansion is expected to give traders access to eBay’s global community. The initiative is primarily designed for business-to-business transactions and will be launched later in 2005.
The teaming deal follows announcements earlier this year by eBay president Meg Whitman in Beijing who said, 'China could be eBay's largest local market in a five to ten year period' - provided the current growth strategy comes to fruition.
Industry sources believe eBay's problem in China is that a local player called Taobao.com is experiencing much faster growth than eBay so this deal with Global Sources seems to make good sense in helping to address the business procurement sector in China as well as consumers.
One of the other keys to eBay’s future success in China is PayPal, eBay’s online payments system. The PayPal system is a major factor in helping to remove the financial risk for both buyers and sellers in online auctions, particularly for international transactions.
This further move in the globalisation of eBay will allow sellers in low-cost countries including China to sell their goods to the US and Western European countries. But that development could be bad news for eBay shops and stores on ebay.co.uk and ebay.com since they will face more competition.
Joining an externally promoted directory of ebay shops is one way to gain additional publicity and differentiation from the emerging global competition.
The deal will allow Global Source’s clients to promote their products through the eBay EachNet Web site in China and further expansion is expected to give traders access to eBay’s global community. The initiative is primarily designed for business-to-business transactions and will be launched later in 2005.
The teaming deal follows announcements earlier this year by eBay president Meg Whitman in Beijing who said, 'China could be eBay's largest local market in a five to ten year period' - provided the current growth strategy comes to fruition.
Industry sources believe eBay's problem in China is that a local player called Taobao.com is experiencing much faster growth than eBay so this deal with Global Sources seems to make good sense in helping to address the business procurement sector in China as well as consumers.
One of the other keys to eBay’s future success in China is PayPal, eBay’s online payments system. The PayPal system is a major factor in helping to remove the financial risk for both buyers and sellers in online auctions, particularly for international transactions.
This further move in the globalisation of eBay will allow sellers in low-cost countries including China to sell their goods to the US and Western European countries. But that development could be bad news for eBay shops and stores on ebay.co.uk and ebay.com since they will face more competition.
Joining an externally promoted directory of ebay shops is one way to gain additional publicity and differentiation from the emerging global competition.
