Question
I'm just wondering why no-one is paying any attention to the big news on Yahoo buying 40% of Alibaba to compete and take a piece of the pie in China. Has anyone ever checked out Alibaba?
In this Global Economy, we all need to start thinking Globally, and looking at different Channels to sell our goods. Any thoughts, comments? Has anyone tried finding sourcing on this site, and is it financially prudent to do so? What are the various bariers that one must hurdle to buy quantity from Chineese Merchants?
I understand that most of us are mainly all US sellers, but I think with the slow decline in growth at the US site, overseas business could be the best investment yet for future success of our ecommerce business's.
Thoughts, comments?
Lou
Answer
I'm constantly reminded how little I understand about eBay as demonstrated by events like the huge fall in stock price earlier this year and the rebound after the second quarter report.
Add to that the apparent adversarial relationship they foster with many of their customers and the most accurate answer I can give to most any generalized question is "I don't know and I don't understand".
My expectation, for what little they are worth, is that both eBay and the YAHOO partnership will have a prominent presence in China for years to come.
Antidotal information suggests that Japan was once (maybe still is) a profitable market for US based sellers of vintage collectibles but I don't expect the same will be true of China, within the near future.
It may be that US based sellers will be able to purchase inventory in large volume at better prices by dealing direct but smaller sellers will likely suffer in competition with the large US importers and direct sales by retailers based in China.
I'm seeing some of that already in my general niche where China based sellers are offering what I assume are unlicensed reproductions of team jerseys for Irish and Europe based sports teams. Many very nice "Irish" theme new items being offered by the largest retailers are all made in China.
Sellers of vintage and antique collectible will have to comment on the impact that reproductions are having on their business but I don't expect it is positive.
Small or narrow markets for collectibles and custom items will not feel much impact but sellers of new items will likely face severe price competition unless they can buy inventory directly from the manufacturer.
In summary, as a small seller, I don't expect I will ever sell much to China and I purchase too little to benefit from buying direct.
Much like a small business in the path of a new WalMart I better find something to offer that is different enough to be outside of their product lines or look elsewhere for survival.
Then again I don't know and don't fully understand, so anything might be possible.