Yahoo! Beats Ebay, Says Research and Markets Report

Updated on Monday, May 22nd, 2006 at 10:50 am

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Dublin, Ireland - (Cheap Web Hosting Directory) - May 22, 2006 - A Global Analysis of eBay has been added to international market research and data firm, Research and Markets’ offering.

Founded just 10 years ago, eBay is now a $3 billion company, and growing, serving more than 130 million registered users in 32 countries. However, eBay’s growth is slowing in the US, putting pressure on non-US Web sites to accelerate their growth. While it is believed that eBay is wisely betting on global markets, specifically China, eBay should be expanding into more markets more quickly.

This report provides a global analysis of eBay’s current business strategy, Web site, and its plans for continued growth. In addition, the report draws lessons from eBay that may benefit other companies looking to expand into global markets.

eBay is one of the great Internet success stories and a bellwether for the state of global ecommerce. As countries around the world have embraced ecommerce, eBay has flourished. But eBay has also stumbled along the way, and there is plenty of room for improving the web site.

By 2006, possibly earlier, non-US revenues will surpass US revenues. eBay is investing $100 million in China with a more localized strategy, including customer support and television advertising. It is believed mobile commerce, via PayPal, is not far behind. The eBay web site has wisely evolved into a mostly consistent global template across all locales. eBay is developing a sophisticated approach to globalization workflow and marketing, which results in more culturally relevant and financially successful web sites. However, global navigation remains a weak spot.

Topics covered in the report include:

– Key Facts
– A Brief History of eBay
– eBay by the Numbers
– eBay International: Where the Action Is
– eBay Europe: Is the UK the “The Next Germany”?
– eBay Asia: The Future Is China (Not Japan?)
– Kijiji: eBay Quietly Returns to Japan
– PayPal: eBay’s Secret Weapon
– Web Site Analysis: Room for Improvement
– Business Analysis: Not Growing Fast Enough
– Looking Ahead: Three Predictions
– Five Lessons for Companies Going Global

eBay is one of the great Internet success stories and a bellwether for the state of global ecommerce. As countries around the world have embraced ecommerce, eBay has flourished. But eBay has also stumbled along the way, and there is plenty of room for improving the web site.

Here are the key takeaways from this report:

— In 2004, the number of non-US-registered users surpassed the number of US-registered users.
– By 2006, possibly earlier, non-US revenues will surpass US revenues.
– eBay is investing $100 million in China with a more localized strategy, including customer support and television advertising. It is believed mobile commerce, via PayPal, is not far behind.
– While it is sure the people within eBay feel they are moving as quickly as they can to expand their global footprint, the author thinks more should be done, and more quickly. The opportunity cost of ignoring markets could result in a repeat of eBay’s failure to beat Yahoo! to Japan. Although eBay withdrew from Japan in 2002, it is believed that eBay’s recent launch of the international classified ad portal, Kijiji, represents eBay’s quiet return to this valuable market.
– The eBay web site has wisely evolved into a mostly consistent global template across all locales. eBay is developing a sophisticated approach to globalization workflow and marketing, which results in more culturally relevant and financially successful web sites. However, global navigation remains a weak spot.
– eBay mistakenly equates ”.com” with US, both in its web site and its operational units. This may seem like a trivial detail, but this reflects eBay’s failure to do a better job of directing non-US users away from its US web site to local web sites. Global navigation needs improving.
– Companies can learn much from eBay’s globalization efforts, such as how to select new markets for growth and how to localize marketing strategies based on each market’s specific business and cultural challenges.

To learn more, please visit: www.researchandmarkets.com/reports/c19286.

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