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Abstract In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay failure problems in China compare to Tao Bao. We will introduce EBay, compare and contrast between eBay and Tao Bao, also, we talk about reasons failure in China. Introduction to EBay EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network. As an online auction site, eBay created a buyer but also the seller of unprecedented business model which was C2C mode. EBay has differences from traditional marketing because e Bay make a…show more content…
Tao Bao has another payment, such as, cash on delivery, bank transfer. But if trade dispute occur, Tao Bao will difficult to provide the same assistance. On the other side, eBay offer variety of payment methods, including PayPal which is leading online payment and they responsible for the completion of buyers and sellers money. (Jeffeny Kow, 2010) Issues of eBay In 2004, eBay acquired by Each Net to enter the Chinese market, many analysts believe eBay will become leader in Chinese market. Tao Bao and eBay both have a wealth of experience in international and domestic markets and to maintain close contact with consumers. By the end 2006, eBay has invested three hundred million US dollars for the Chinese business but with little success. Market share of eBay continue to decline each year and fell pitifully until 2006, Alibaba’s Tao Bao leapt on it. After the completion of the acquisition Bo Shao and other eBay executives have been chosen to leave eBay. With Tao Bao online, EBay has difficulty situation in China and market share began declining. The biggest problem is the user experience and defining aspect of the product, at beginning which get global platform to China. Because of eBay’s global platform is grid, according to the situation in China, localization is hard, which limits the prospects for our development in China fundamentally. Kathy Burns, n.d. What Is an eBay Business Model. Retrieved on

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