eBay is back in business in China, forming a partnership with Ningbo city, which is also a manufacturing hub.
The port city’s eCommerce pilot zone is one of more than a dozen established by the Chinese government. Companies working in these areas have such benefits as expedited imports, tax breaks and the chance to set up bonded warehouses to store imported goods, which can cut shipping times by as much as 80 per cent.
This is eBay’s first major move in China since it quit the Chinese auction business a decade ago in the face of growing local competition, reports Internet Retailer. But this time the US eCommerce giant appears to be in the forefront of a new trend in online trade.
Chinese shoppers last year spent US$86 billion on online purchases from other countries, and now many are seeking “the best and most expensive product” when shopping. They spent $5 billion on such items as cosmetics and clothing online from South Korea alone last year.
There are also shoppers outside China seeking deals. With the Ningbo partnership, eBay is hoping to improve this process by training local workers to help manufacturers meet the demands of overseas customers, giving global consumers the chance to buy Chinese goods at a discount.