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Surprisingly, eBay’s listing fees were not one of the top reasons consumers used TaoBao over eBay. Chinese consumers preferred brands they were familiar with and from people whom they trust. Many critics argue that high prices are the main reason for eBay’s failure (China Market Research Group, 2007). The same critiques believe Chinese consumers prefer free or low cost choices.
EBay should have offered free services with the intent of becoming the major leader in China’s auction market. Also, one of eBay’s goals should have been to make the Chinese consumers comfortable buying and selling on the internet...
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