Abstract

eBay, the US-based online auctioneer, entered Japan in 2000, after making successful forays into some European countries and Australia. However, it was not able to establish itself in the country, and chose to exit Japan in 2002. The case discusses eBay's international expansion, its entry into Japan, and the reasons behind its failure in the country. It discusses some of the problems eBay faced in Japan due to competition from Yahoo Japan, and details some of eBay's practices like credit cards having to be used, a commission for transactions being levied, etc., due to which it was unsuccessful in Japan. The case concludes with eBay's reentry into the country through a joint venture with Yahoo.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine eBay's international expansion.
• Understand eBay's operations in Japan.
• Analyze the reasons for eBay's failure in Japan.

Keywords

eBay, Japan, Online Auctions, Auction website, Yahoo Japan, Sekaimon, NEC Corporation, Listing fees