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By Devin Comiskey

June 22, 2005


Our exclusive coverage of the eBay Developers Conference continues. Managing Editor Devin Comiskey is in San Jose covering the events this week.

Looking for selling opportunities on eBay? Look across the border.

Much is said about the vibrant eBay market in the U.S. with some 40 million registered users. But according to some eBay representatives, the real opportunities for developers and sellers in not on eBay.com, but on ebay.ca, ebay.de and ebay.cn. That's right. The foreign markets are growing at a torrid pace and buyers are hungry for products.

Michele Don Durbin, Senior Manager of International Platforms for eBay, said eBay international sites have immediate needs that can easily be filled if developers and sellers go about it the right way.

During a session at eBay Developers Conference in San Jose today, Durbin said Canadians are hungry for supply on eBay.ca. "Canadian sellers use eBay.com, but not vice versa. Supply is lacking in Canada. For instance, only 17 U.S. users used third party tools to list items on the Canadian site in Q1 2005," she said.

She suggested sellers follow a few key approaches when entering the Canadian market, including using Canadian-friendly language, spelling and color, cross-border selling and shipping expertise and, most importantly, transaction safety.

She added that there is 77 percent PayPal penetration in Canada, but foreign buyers need to feel secure when sending money for auction items. Providing a good supply of items is also key.

Germany, according to Durbin, is one of the most popular sites for eBay. "They took what eBay wanted and made it their own. It's a fun community and a fun site," she said. Again, the opportunities there are ripe for U.S. sellers as ebay.de is growing at a rapid rate.

Surprisingly, Durbin said eBay UK site is experiencing 105 percent year-over-year growth, with more than $1.4 billion in Gross Market Volume in Q1 2005. "There is strong listing penetration in the UK," she said.

eBay France, one of Durbin personal favorite site, is one of the fastest growing eBay sites in the world with a 160 percent year-over-year growth rate. Currently, she said, there are 24 million Internet users in France and 10.2 million online buyers. eBay Australia and Italy are also seeing growth rats approaching 200 percent.

Durbin advice for breaking into these markets: "They really want to see you're interested in their country. For example, if you include flyers in your packages, use a local supplier to print them out. And emphasize safety. Anything you can do to promote safety online is worthwhile," she said.

Among the steps sellers can take to build trust with foreign buyers is to be upfront about insurance, payment options and some sort of seller verification.

The Great Wall ... of Buyers
China, of course, is a market that is taking off for eBay. With nearly 500 million Internet users, according to Durbin, eBay China saw a record 1.8 million new users in Q1 2005 alone.

"If you are even thinking of China, you need to think about it now," she said.

One attendee asked Durbin why Russia was not a target market of eBay at this point. She said due to the large amount of fraud generated from that country and the small market, eBay made a strategic decision not to focus its efforts there for the time being. She added that while security concerns are also high in China, it "represents a much larger market, so the company made a decision to let it grow."

How to Break In
Durbin offered developers and sellers some tips on how to break into the various foreign markets.

"You need to ask 'What strengths can you offer to international customers? Which markets make the most sense for your company and its mission? How can you get your ties wet without committing a lot of resources? Where will your company be in five years?'" she said.

Another tip she gave was for sellers and developers to not start from scratch. "Go for eBay English-speaking users" in a particular region, she said.

Devin Comiskey is the Managing Editor of ECommerce-Guide.com

Do you have a comment or question about this article or other e-commerce topics in general? What would you like to see eBay do this year? Speak out in the SmallBusinessComputing.com E-Commerce Forum. Join the discussion today!

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