eBay in Japan

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Case Details:

Case Code : BSTR282
Case Length : 12 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : eBay
Industry : Internet & E-Commerce
Countries : Japan

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eBay Reenters Japan Contd...

As a part of the agreement, the companies decided to start a Japanese website, Sekaimon8. Apart from translating the names and details of the items listed on eBay's US website into Japanese, the site would provide services like overseas shipping and customs clearance. According to Hiroko Sato, analyst at JP Morgan, Chase & Co, Tokyo, "the alliance will create a very attractive service for U.S. and Japanese users as it allows them to purchase items simultaneously in both countries."9

After several highly successful international ventures, eBay first entered Japan in 2000.

By then, Yahoo was already a well-established portal in the Japanese market and its online auctions site, which had started a few months before eBay's entry into Japan, had started tasting success. eBay found it difficult to establish itself in the Japanese market.

Some of its practices like charging transaction fees and requiring the use of credit cards10 made the going tough for it. By 2002, it was able to garner only a 3 percent share of the Japanese online auctions market. eBay decided to exit the country in 2002.

While exiting the country, Kevin Pursglove (Pursglove), spokesperson, eBay, said, "We may come back to Japan sometime when factors are a little more in our favor, but they are not at the current time."11

The news of eBay's reentry into the Japanese market in late 2007 was met with mixed reactions...

Excerpts >>

Business Strategy Case Studies | Case Study in Business, Management, Operations, Strategies, Case Studies

8] Sekaimon in Japanese means 'Gateway to the world'.

9] Masaki Kondo, Kiyotaka Matsuda, "Yahoo Japan Shares Gain on Online-Auction Alliance with eBay,"www.bloomberg.com, December 04, 2007.

10] Japan was largely a cash-based society, and the use of credit cards was limited.

11] "Sayonara: For eBay, Japan is the Land of Setting Sun,"Seattlepi.com, February 27, 2002.

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