EBAy Inc. (NASDAQ:EBAY) is seeking to increase cross border sales using a method it introduced to the market in about 120 territories as it looks to enhance growth against competitors Amazon and Alibaba.
The onset of change
In many places, EBay still refers to local classified where Americans mainly sell to fellow American clients and Britons to their fellow Briton clients. It was only in the recent past that the local head of EBay Ilya Kretov, came to a realization that Russians had been using the platform for cross border trading. He reacted by twisting the software to allow sellers to easily reach out to foreign buyers. The result was splendid. There was a 50% increase in exports conducted by Russians in the past year. EBay has now given him 120 countries to enact the same process.
Kretov’s acceptance and remarks
Kretov confirmed acceptance of the challenge during an interview. He said that most emerging markets lack localized websites and thus the ability to access global e-commerce to penetrate such markets is very insignificant when compared with the number of internet users. He added that such is a good source for growth. His main areas of responsibilities include Middle East, Africa and most of Europe. The Europe region do not include the large developed markets like France, Germany and the U.K.
Crucial expansion process
Expansion by growth is very crucial when it comes to EBay. When compared to e-commerce giants, Amazon and Alibaba Group. EBay is targeting developing countries. It wants the developing countries to adopt cross border e-commerce system similar to the one it has in China. China is leading in the world with making direct orders from merchants across borders.
Demand for locals against demand for exports
According to EBay, Russian sellers mainly offer things like collectible $30 tin soldiers and fishing lures. On the other hand their consumption needs mainly fall on the electronic gadgets from Western Europe and in the U.S. The EBay team under Kretov have embarked on activities to boost sales including straightening out EbayMag. This is a software that allow listings to appear in different languages. EBay can easily exploit new market because unlike Amazon, it does not need shipping centers and warehouses. EBay is determined to reach its competitor’s level all which are listed in the NASDAQ stock exchange.
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