Eachnet.com, a Shanghai-headquartered consumer auction site owned by eBay, has closed down after 23 years of operations because of tough market competition, South China Morning Post reported. The site will turn off its servers and end transactions on all shops before August 12.
The company was established in 1999 by Bo Shao Yibo and Tan Haiyin, who are both graduates of Harvard University. At its peak, Eachnet.com had 70% of China’s online consumer goods market share.
Its success caught the attention of US-based ecommerce giant eBay, which paid US$30 million in 2002 for a 33% stake in the Chinese firm. In 2003, eBay decided to buy the entire the business for US$180 million. Two years later, Eachnet.com received another US$150 million from its parent company to boost its operations.
Since then, incumbents such as Eachnet.com have been edged out by tech heavyweights like Alibaba, Pinduoduo, and JD.com, which now dominate China’s ecommerce scene.
See also: 20 largest exits in China
Editing by Samreen Ahmad and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
