There are several reasons why Alibaba has gained an edge over eBay. Here are some of the key factors:
1.Localization Strategy:
Alibaba understands the uniqueness of the Chinese market and has implemented a localization strategy that is more in line with the Xi of Chinese users.
Initially operating primarily in the United States, eBay entered the Chinese market without fully adapting to China's online environment and consumer behavior.
2.Free Mode:
Alibaba's **.com has adopted a strategy of opening stores for sellers for free, attracting a large number of individuals and small businesses to settle in.
In contrast, eBay has adopted a fee-based model, which has initially discouraged some users from joining.
3.Community Building:
* Through the establishment of instant messaging tools such as Ali Wangwang (now Qianniu), the communication between buyers and sellers has been facilitated, and the social attributes of the platform have been enhanced.
eBay, on the other hand, is relatively weak in this area and has not formed a similarly close-knit community.
4.Service Innovation:
* Alipay was launched, which solved the trust problem in online transactions and greatly improved users' confidence in purchasing.
The secured transaction service provided by Alipay eliminated the risk for both buyers and sellers, a feature that eBay did not have at the time.
5.Market Segmentation:
Alibaba has carefully divided different target markets through different platforms such as Tmall and ** to meet diversified needs.
eBay's positioning in the Chinese market is relatively vague, with no effective market segmentation like Alibaba.
6.Marketing Promotion:
Alibaba Group has successfully increased brand awareness by using a variety of marketing methods, including online marketing, traditional advertising, and large-scale events such as the Singles' Day shopping festival.
eBay's marketing efforts are relatively small.
The combination of these factors helped Alibaba achieve a leading position in the market, which ultimately led to eBay's gradual decline in market share in China.