Ebay vs. Gmarket – Yahoo Wins
Gmarket is kicking eBay’s (EBAY)butt in Korea. And it is doing it by offering cheaper listings, fixed prices and flashy come-ons.
Three years ago, Korea was the source of 75% of eBay’s Asian revenue. In the same amount of time, Gmarket has caught up with eBay, each selling about $490 million in the first quarter alone of this year.
Gmarket’s strategy is to allow buyers to close deals instantly instead of making bids. Sounds good to me. I have NEVER bought or sold anything on eBay because of the bidding and waiting hassle.
There is an option to do the same on eBay, but 90% of Gmarket’s sales are done this way.
Yahoo is caught in the middle.
Yahoo has an alliance with eBay in the states. But, in Asia, all bets are off. Yahoo Japan already beat eBay there.
In China, Yahoo owns 40% of Alibaba, eBay’s chief rival there. Yahoo also recently purchased a 10% share of Gmarket.
It reminds me of the fuzzy headed guy that owned all the boxers. No matter who fought whom, the promoter was the winner.
It seems to me that Yahoo is going to win this one.
What do you think?
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