Red Herring reports on the battle between eBay and Taobao in China.
“It’s a bit like the early days of the Internet,” says Paul Waide, an editor at Shanghai-based analyst firm Pacific Epoch. “They’re using metrics that don’t really mean anything. What everyone wants to know is how they’re going to turn those into revenues.”By that he means Taobao doesn't yet have a business model -- it doesn't yet charge for the transactions it handles prompting the folks at eBay to point out that "free is not a business model." The parallel here is Japan where eBay ultimately lost the market to Yahoo! Japan who pursued a similar free listing strategy. Both Yahoo! Japan and Taobao are backed by Softbank.