E-commerce site eachnet.com, once owned by eBay, ceases operations due to fierce competition
Staff members work at the distribution center of an express company in Yinchuan, northwest China’s Ningxia Hui Autonomous Region, November 12, 2018. More than 1.35 billion packages were generated during of the shopping spree on major e-commerce platforms on November 11, 2018, data from the National Post Office of China showed. Chinese e-commerce giant Alibaba launched the annual online shopping promotion on November 11, 2009, a day celebrated by many young Chinese people as Singles’ Day. (Xinhua/Wang Peng)
Chinese e-commerce site eachnet.com, once owned by U.S. online marketing giant eBay and a major competitor to Alibaba.com, has officially shut down after 23 years in business, Shanghai Yingshi Information Technology Co has announced. .
Experts said Shanghai’s recent COVID-19 lockdown was the “last straw” for the struggling company, but its failure to keep up with changes in the highly competitive domestic e-commerce industry was the underlying reason. of his disappearance.
According to the aforementioned announcement, eachnet.com is set to close transactions for all its stores on its website and shut down its website server by August 12.
The consumer-to-consumer site was founded in Shanghai in August 1999 by two US-educated entrepreneurs. In 2002, online marketplace eBay bought a 33% stake in eachnet.com and bought the remaining shares in 2000.
According to media reports, eachnet.com was once a market leader, but was quickly overtaken by Alibaba’s taobao.com. A Financial Times report noted that when taobao.com was launched in 2003, eachnet.com held over 70% of the national e-commerce market share. Five years later, taobao.com owned more than 80%.
In 2006, eBay sold 51% of eachnet.com to Tom Online, a commercial wireless Internet-based operator.
Fu Liang, a seasoned industry watcher, told the Global Times on Sunday that a significant reason for eachnet.com’s demise is that it has been unable to catch up with changes in the dynamic landscape of online shopping in china.
“China’s e-commerce industry has undergone three to four rounds of adjustment since the late 1990s, when Taobao and Eachnet were competitors, with many laggards jumping on the bandwagon. In fact, China is where the competition is fiercest for e-commerce players,” Fu said.
According to Fu, behind eachnet.com’s inability to keep up is the fact that it is a fully acquired company, which had no ability to make independent business decisions. “When business decision-making is transferred to American companies, its operation is detached from the Chinese market,” he said.
On the contrary, although companies like Alibaba also accept overseas investment, their business decision is almost entirely made by themselves.
Other foreign-funded online businesses have also encountered similar problems. Amazon recently announced the closure of its Kindle bookstore in China from June 2023, marking another setback by a Western tech giant in the Chinese market.