Comparative Ebay and Taobao
A Comparative Study between eBay and Taobao in Chinese Online Auction Market
BSAD 415:66 Electronic Business
Prof. G. Trites
Jie Yue (Kathy)
200706289
June 10, 2008
1 Introduction
Being the largest online trading company, eBay has launched websites across the world, including thirty other countries in addition to its original U.S. website. China, with its large online market, is one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online company in China, eBay became the largest online trading company in China, controlled 90 percent of the Chinese C2C market (Zazaian, 2006). The success continued until Taobao, a completely free online C2C platform, established in China by the founder of Alibaba.com. Taobao quickly became dominant in Chinese online C2C market, controlling as much as 67 percent of the market in 2005, compared to eBay’s 29 percent (Zazaian, 2006). According to the 2008 China Online Shopping Report, in 2007, 70.4 percent of online customers choose Taobao, while eBay only controlled 8 percent of the market (China IntelliConsulting, 2008). Not only is Taobao attracting more and more consumers, it is also the symbol of online shopping in China. With great success in C2C market, Taobao also launched its B2C platform in 2008, Taobao mall, which expands Taobao’s business to a new level. In contrast, in 2008, eBay China’s Website (Eachnet.com) has to declare that it will not charge any listing fees in order to compete with Taobao. EBay also announced recently it would partially admit Taobao users ' credits (Shanghai Daily, 2008).
(此处插入一个过程图)
With the same Chinese e-business environment, eBay and Taobao differentiated significantly in their business accomplishments; with the same strategy, eBay failed in China, while making great success in the U.S. and many other countries. This is not just an accident.
In the remaining paper, a detailed comparison and analyze between eBay
BSAD 415:66 Electronic Business
Prof. G. Trites
Jie Yue (Kathy)
200706289
June 10, 2008
1 Introduction
Being the largest online trading company, eBay has launched websites across the world, including thirty other countries in addition to its original U.S. website. China, with its large online market, is one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online company in China, eBay became the largest online trading company in China, controlled 90 percent of the Chinese C2C market (Zazaian, 2006). The success continued until Taobao, a completely free online C2C platform, established in China by the founder of Alibaba.com. Taobao quickly became dominant in Chinese online C2C market, controlling as much as 67 percent of the market in 2005, compared to eBay’s 29 percent (Zazaian, 2006). According to the 2008 China Online Shopping Report, in 2007, 70.4 percent of online customers choose Taobao, while eBay only controlled 8 percent of the market (China IntelliConsulting, 2008). Not only is Taobao attracting more and more consumers, it is also the symbol of online shopping in China. With great success in C2C market, Taobao also launched its B2C platform in 2008, Taobao mall, which expands Taobao’s business to a new level. In contrast, in 2008, eBay China’s Website (Eachnet.com) has to declare that it will not charge any listing fees in order to compete with Taobao. EBay also announced recently it would partially admit Taobao users ' credits (Shanghai Daily, 2008).
(此处插入一个过程图)
With the same Chinese e-business environment, eBay and Taobao differentiated significantly in their business accomplishments; with the same strategy, eBay failed in China, while making great success in the U.S. and many other countries. This is not just an accident.
In the remaining paper, a detailed comparison and analyze between eBay
References: Alibaba. (2006). Taobao Releases 2006 Key Metrics. Retrieved June 5, 2008, from http://www.alibaba.com/aboutalibaba/aligroup/press_releases070117.html Alipay Chen, J., Zhang, C., Yuan, Y., & Huang, L. (2007). Understanding the emerging C2C electronic market in China: an experience-seeking social marketplace. Electronic Markets. 17(2), 86-100. China Daily. (2005). Taobao Extends Free Online Bid Service. Retrieved June 5, 2008, from http://english.people.com.cn/200510/21/eng20051021_215801.html China IntelliConsulting EBay. (2008). Fees 2008. Retrieved Jun 4 2008, from http://pages.ebay.com/sell/update08/basic/index.html Fei, H Lee, S. (2007). Design a Differentiated Online Experience: Insights from eBay China and Taobao. Retrieved June 3, 2008, from http://www.customerthink.com/article/online_experience_ebay_china_taobao Rein, S Shanghai Daily. (2008). EBay China’s Users Need Not Pay Fees. Retrieved June 6, 2008, from http://en.ce.cn/Business/Enterprise/200805/06/t20080506_15372716.shtml Wang, H Zazaian, M. (2006). Ebay China Gets Shanghaied by Taobao. Retrieved June 1, 2008, from http://techfreep.com/ebay-china-gets-shangahaied-by-taobao.htm