eBay makes a play for Chinese auctions - e-Watch - Brief Article

DSN Retailing Today, April 8, 2002

SAN JOSE, CALIF. -- eBay made a bid for the Chinese e-commerce market in March when the Internet auction site put up $30 million toward one-third of the stake in EachNet. Modeled after eBay, the Shanghai-based company, which was founded in 1999 by two Chinese entrepreneurs, boasts nearly three million users and is considered the country's largest online consumer trading community. The purchase allows eBay to expand its ownership at a later date. eBay has ventured into Asian territory before, acquiring Taiwan-based NeoCom Technology in February for $9.5 million; paying $120 million for Korea's largest auction Web site, Internet Auction Company; and entering, but quickly leaving, the Japanese market after competition from Yahoo! Inc.

In other news, eBay has teamed up with CatalogCity.com to bring merchants to the auction giant. Operated by Monterey, Calif-based Altura International, which is partially funded by Bill Gates, CatalogCity.com posts product offerings from various catalogs, such as Omaha Steaks and International Male. Through the deal, catalog products will be posted on eBay, with winning bidders then led to CatalogCity.com to complete the sale. To start, approximately 50 catalog merchants will be available on eBay, with that number expected to greatly increase as the eBay service is extended to all merchants on CatalogCity.com.