Acquisition Of Ebay Will Help Alibaba Enter The US Market

In the recent acquisition of carnival, it wants to seek a foothold in the international market.

Therefore, Alibaba's interest in eBay is not groundless.

Alibaba and eBay share similar structures.

Tmall and Taobao are subsidiaries of Alibaba.

The two way of trading goods is similar to that of eBay auctions.

In addition, eBay's payment system Paypal is similar to Alipay's payment system, Alipay.

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The strategy of becoming a global company can be achieved through the acquisition of eBay.

The acquisition of eBay enabled Alibaba to enter the world's largest online shopping market, the United States.

It is easier for Alibaba to buy eBay than to start a new business from scratch.

Cai Chongxin, vice chairman of the Alibaba, said in an interview in February 2014, "the world is not just about China." Joe Tsai

Our goal is to become a more internationalized company eventually.

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If you want to enter the US market with your own brand, Ali will need to use a lot of resources to build up its brand reputation and overcome the difficulties faced by American online shopping enterprises.

On the other hand, eBay has gained a certain brand value and recognition in the US market.

For Ali, the purchasing power of domestic customers is totally different from that of the US market. The brand with awareness will help Ali enter the US market.

Since Alibaba set a record in its initial public offerings in September 2014, Ali has begun the acquisition process, trying to increase the diversity of the company.

Some are concerned about whether Alibaba has enough liquid assets to make big acquisitions.

However, these worries are impractical.

The fact is that Ali has enough cash on hand without affecting the overall business of the company, and can easily bring eBay into pocket.

Another reason why Alibaba may consider buying eBay is ePacket.

EPacket is a delivery service, which can deliver small items not exceeding 2kg to different destinations between 7 and 10 days.

EBay signed a service agreement with a number of companies including USPS, China Post and Hongkong, and also focused on sending goods to the United States.

EPacket is the product of an agreement reached by USPS, eBay and other post offices, and this service is not open to other online shopping companies.

If Alibaba successfully acquired eBay, this service would be a great benefit to Ali.

Of the Chinese customers registered with eBay, 40% of them used the service to send goods to the United States.

Compared with the simultaneous acquisition of Paypal and eBay, the acquisition of ePacket is much easier to raise funds.

Alipay is the leading Internet payment service in China, but has little influence abroad.

On the other hand, Paypal is the largest network payment provider in 200 countries.

From the marketing point of view, Alipay is not enough to replace Paypal.