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Why eBay Broadened Its Exposure to the China’s Market



Chinese market growth

According to eMarketer, there were 148 million online shoppers in China (FXI) in 2010. These shoppers accounted for 11% of the population and 32% of total Internet users in the country.

By the end of fiscal 2013, the number of online shoppers in China had grown to 302 million, accounting for 22% of the population and almost 49% of total Internet users in the country. By the end of fiscal 2020, the number of online shoppers is likely to grow to 700 million.

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Win-win situation for eBay

On December 3, 2015, eBay (EBAY) broadened its presence in the Chinese e-commerce market by signing a strategic agreement with the Tianjin Municipal Government. Tianjin is recognised as the center of online retail exports, and it’s one of the top eight Chinese cities for e-commerce cross-border trade.

By signing this agreement, eBay will be in a win-win situation, as it can strengthen its cross-border trading by collaborating with the government while helping Chinese vendors to reach overseas consumers with a large variety of Chinese products. eBay is bound to see stiff competition from local e-commerce players such as Alibaba (BABA) and JD.com (JD). Even Amazon (AMZN) has been trying to grow its presence in China.

“We’re committed to being the preferred business partner and channel for Chinese businesses to explore and thrive in overseas markets,” said John Lin, vice president and managing director of eBay Greater China. “Our strategic cooperation with the Tianjin Government is further proof of this promise.”


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