US auction site eBay announced a partnership on Friday  with China Post and the US Postal Service in a new bid to re-establish  itself in China, where the market is dominated by homegrown rival  Taobao.com.
Under the plan, eBay hopes to woo Chinese merchants by  developing shipping programs that make it easier for them to sell to US  consumers, eBay officials said at a signing ceremony in Shanghai.
"The collaboration will make the most of the advantages  of the three while helping expand profits," Jeff Liao, eBay's Greater  China chief executive and head of Asia-Pacific cross-border trade, told  reporters.
The partnership centres on an express  delivery service to the US that will be run by China Postal Express and  Logistics Corporation, part of China Post, and which will include online  tracking systems, eBay said.
Liao said China's e-commerce market was growing very fast  and was worth more than four trillion yuan ($A689.98 billion) last  year.
He did not, however, say what eBay's share of that market  was, saying only that its Chinese transaction volumes grew "between 50  and 100 per cent in 2009 and so far this year" and provided no specific  figures.
The US auction site largely withdrew from China years ago  after being overtaken by Taobao, part of China's largest e-commerce  firm, the Alibaba Group, which also operates business-to-business  marketplace Alibaba.com.
The American firm shut down its Chinese consumer website  in late 2006 and folded its China operations into Eachnet, a joint  venture run by Hong Kong's Tom Online Group, after Taobao won the lion's  share of the Chinese market.
Unlike eBay, Taobao charges no commission to list items  for sale and the site's revenue comes from advertising.
Starting as a consumer-to-consumer auction website,  Taobao has grown into an online retailer that also features a growing  number online shops run by big brands such as US computer maker Dell.
However, eBay is fighting to make a comeback in China, a  market with more than 400 million web users, by refocusing on  export-oriented Chinese merchants who are keen to reach overseas buyers  through international websites.
The firm's current Chinese operations include eBay.cn, a  Chinese platform targeting Chinese merchants - mostly small and  medium-sized enterprises - by offering online training courses on  international trade and listing tips.
It also runs Beibao.com, a Chinese version of payment  site Paypal.
      © 2010      AFP
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