Why Is eBay Having Trouble in Asian Markets?

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Why is eBay having trouble in Asian markets? Despite its improbable success elsewhere, the Internet action website eBay floundered in Japan and was eventually forced to pull out of the nation entirely, closing its operations. This might seem surprising, given the Japanese cultural fascination with collectibles, spanning from Pokémon cards to Pez dispenser. "Japanese are well-known fans of collectibles think Pokémon, Hello Kitty, and Mickey Mouse that are perfect fodder for the online-auction experience" (How Yahoo! Japan beat eBay at its own game, 2001, Business Week). However, eBay proved unable to compete with rival auction portal Yahoo Japan. At the time of eBay's departure, Yahoo Japan had 95% of the nation's online-auction market, while eBay possessed only 3 % (How Yahoo! Japan beat eBay at its own game, 2001, Business Week). In retrospect, eBay's failure in Japan seems like a 'no-brainer.' First of all, eBay entered the market late, sacrificing its first-mover advantage to Yahoo Japan. When selling items online in an auction format, it is critical to go to the place where there are the largest numbers of sellers. Vendors first flocked to Yahoo Japan, and sellers followed them. When eBay entered the Japanese market, there was little incentive to go to the bother of transferring one's purchasing and selling patterns to the new website. Furthermore, unlike Yahoo Japan, eBay charged sellers a commission. For sellers who wish to make substantial profits, this was a

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