The size of the market doesn't make sense.

Source: Internet
Author: User
Keywords Internet EBay

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Since 2004 the entire Chinese Internet world is shouting the arrival of the WEB2.0 era, almost crazy call the arrival of the Chinese Internet spring, but 3 years later, the general situation is still almost no real profitable expectations, all still in the exploration ...

December 20, 2006, International famous business brand ebay and the domestic leading portal, wireless internet company Tom Online breakthrough cooperation, two companies to join hands to form a joint venture, for China's fast-growing e-commerce and mobile business market to enter a new phase to lay the foundation.

However, the co-operation between the two, such as "a stone stirred the waves," caused by countless professionals to speculate and guess: ebay will completely abandon China's Consumer-to-consumer market? What is the future strategic deployment of ebay in the Chinese market? The debate over Consumer-to-consumer's final judgment on the success of this business model has never ceased ...

Speed up to meet the needs of localization

It has to be admitted that China's Internet development since ebay entered China has been a bit acclimatized: from the initial cautious joint venture to the then-aggressive sole proprietorship, now back to the joint venture ——— lack of understanding of Chinese users enough The swing of Taobao's free strategy, and so on, makes every appearance of ebay a rush for the industry, but it's a quickie, and ebay's performance in the Chinese market is far less impressive than its performance in the global market, especially in the US. How to reverse the situation in China's Internet market has become the first issue that ebay needs to solve, and Tom's successful breakthrough in cooperation, undoubtedly become its localization of an important entrance.

"After looking at the local market, we found that it would be more successful in China if we worked with Tom Online," said Whitman, president and CEO of ebay. "Tom Online CEO Lei is more ambitious:" With the advantage of Tom in the wireless Internet competition in cooperation with ebay, I believe that the future use of television, radio, media channels to rely on the Internet, will be able to integrate more users to provide more access to the community. At the same time, the use of different, multi-media platform to attract more merchants to participate in ebay's E-commerce platform. "No surprise, the new trading platform will bring domestic buyers and sellers more online and mobile business opportunities."

On the other hand, ebay's cross-border trading business has been able to work harder on ebay's ebay business. The Foreign Trade Development Bureau of Ministry of Commerce and the Academy of Social Sciences conducted joint SME Foreign Trade Service Demand survey shows: As of June 2006, I have reached 260,000 small and medium-sized enterprises with the right to operate import and export, but about 50% of the SMEs ' export and import performance is still zero. The lack of information channels and means is restricted by many aspects. As a result, ebay's decision to move is clear ——— not hesitate to focus strategically on Chinese SMEs and individual users who are eager to sell overseas.

In contrast to other competitors on the market, ebay's advantage in Cross-border deals is also obvious: ebay, which relies on ebay's 38-nation sites and over 233 million users in more than 150 markets around the world, has played a leading role in E-commerce; the second is to integrate PayPal, Skype breaks down the payment bottlenecks in Cross-border transactions, bridging the bridges of communication, and ebay will also create a network of information, services and communities for Chinese users, making it more comprehensive in terms of channels, means of payment and business development. Help them to do business on ebay smoothly.

Free strategy Flash profit is the king

When the free banner is plugged in all corners of China's consumer-to-consumer market, may I ask: what is the most fundamental criterion for determining the success of a network trading platform provider? Do you have a sentiment that doesn't translate into profit or focus on a specific area to keep growing and generate significant profits?

"Market share does not mean the scale of profit, our philosophy is to be in a profitable market, to achieve a favorable market share, the current size of the market does not have much significance." The purpose of the company is not to preempt a market that has no business model, no profit model, to compete with rivals for market share, Lei said.

The future of E-commerce in the field of war will become more and more fierce, ebay for the goal of profitability and continue to open up new strategic areas to achieve this goal, fully explained ebay's business development in China strong trend.

    in the longer term, the world does not have a "free" lunch, free only in the Chinese e-commerce market to block the mature process, ebay as a pioneer in E-commerce is also constantly seeking new profit growth, to explore a more reasonable profit model, At the same time for their own market in China to inject more momentum for sustainable development.

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