Wednesday, October 19, 2005

From eBay's to Baidu

eBay reported another excellent quarter today.

Inside the report, we take a look at eBay's Chinese business:

As a global e-commerce giant, eBay had outstanding performance in the fast growing Chinese market. Both total trade volume and revenue had rapid growth two quarters in a roll. Online market started to take off in China in recent years: The online auction market size grew 217.8% in 2004. Total finished deals reached 3.4 billion yuan in 2004 comparing with 1.07 billion in 2003. In the same year, number of individual traders doubled from year ago. If the trend continues, this year likely will grow even faster. iResearch reported that eBay/Each has taken a very solid lead with 65% of total market share in China.

eBay's chairman and CEO Meg Whitman was very pleased with the company's performance in China: "eBay achieved excellent result in the Chinese market. Both trading volume and income achieved rapid growth. Trading platforms are more dynamic and are providing buyers with wonderful deal prices and deal completion rate. eBay has acquired nearly 2 million new users and that increased the total numberof users in China to 15.1 million. It becoming the largest Chinese online trading community. One of the big seller on Ebay/Each told me recently that eBay is the only online trading market that allows a seller to develop long-term business. I am very satisfied with our progress in China and very pleased with the dynamic e-commerce environment eBay is creating for the new generation of internet users."

eBay's CFO Rajiv Dutta said that: "In China, the dramatic increase of landed products and high deal completion rate has boosted total trading volume and income. We have worked very hard to attract new users and increase online trading activities. Combining with our great effort to create the most reliable web site for Chinese users have enabled us to achieve this amazing result. The booming local business and the fast growing export business has solidified eBay's industry position. We are extremely happy about it".

eBay's results - good news for Baidu

Recently, eBay has becoming one of the largest customer of Baidu. eBay has put advertisement on virtually every Baidu's search result page to attract new users as well as lure old users back. The intense competition between eBay/Each and Alibaba/Yahoo's Taobao auction site has grown ever stronger. Taobao has announced free listing for next three years and challenged eBay to match.

That will be proved to be good news for Baidu since Alibaba is also spending heavily on Baidu to attract customers.

With more than 70,000 users signed up Baidu as home page and 100 million queries each day, there are going to be big tolls waiting Baidu to collect.


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