Tuesday, December 04, 2007

Reading the Tea Leaves - International Auctions

I posted about eBay teaming up with Yahoo Japan yesterday and considered it speculation because eBay hadn't yet announced the news but today I can confirm it is actually happening. This got me thinking, about eBay's International Strategy going forward. Is this a signal of a change in direction?

Imagine if similar deals are struck in other regions where eBay has had trouble gaining traction. Does this lay the groundwork for eBay, Yahoo and Alibaba to do a deal in China? How about eBay and MercadoLibre doing a deal for South America (they already own a minor stake in Mercado Libre), GMarket in Korea and Qxl Ricardo in Eastern Europe. Once they are entrenched in the auctions business doesn't it make sense that PayPal, Shopping.com and Classifieds would be next.

About a year ago many pundits were criticizing eBay (including me) for losing ground in Asia, this new deal with Yahoo Japan may be the first volley in eBay's new strategy to take over the auction world.

Just my 5 cents!

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