eBay CEO Devin Wenig tweeted the news that he plans to relaunch eBay India: “We will be back in the India market soon with http://eBay.in . We will start by bringing import inventory into india and opening up the worlds markets to Indian merchants.”
eBay had sold its Indian marketplace to Flipkart last year in exchange for an equity stake in Flipkart. But today came news that Walmart had acquired Flipkart, a property in which Amazon had also been eyeing.
Oddly the picture accompanying Wenig’s tweet shows eBay headquarters in San Jose with a PayPal logo positioned vertically and carrying what appears to be a sack like those carried by stereotypical hobos.
It wasn’t too long ago that eBay had focused on BRIC countries (Brazil, Russia, India and China). eBay said it expects to receive $1.1 billion for its stake in Flipkart, according to an announcement on its corporate blog this morning, stating it would focus initially on the cross-border trade opportunity presented.
Announcement follows:
eBay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion. Following the close of the transaction, we also will be ending our current strategic relationship with Flipkart, which includes unwinding our commercial agreements with Flipkart and terminating Flipkart’s license to use the eBay.in brand.
We plan to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity, which we believe is significant. We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India’s diverse, domestic market.
SOURCE: eBay Announcement
Ebay tried to make a go in Japan with a standalone site….. FAIL.
Same with China….. FAIL.
They need to concentrate on the main site before attempting to create business in a third / fourth world country. And who did Flipkart sell to? None other than the company with the deepest pockets of all.
Wal-Mart and Amazon are eating their lunch in the US, and they think they can compete with them in India? WM and the River have unlimited resources which Ebay simply does not possess.
Just more typical Wenig corporate hype in an attempt to plump the stock price.
Wenig has to try and save face somehow as he just continues to show how lacking he is in the world of business. Ebay is such a laughing stock in the business world that no decent talent wants anything to do with them. So now they have to promote from within, which is fine, except they don;t have the talent necessary to run a business that size or that diverse, especially when you know nothing about your core business.
The BOD needs to wake up and get rid of Wenig and bring in some talent that knows what they are doing in this marketplace, rather than whatever talent they are able to hire for their low budget salaries they continue to pay anybody but the CEO. They continue to make poor business decisions and make their US site become more and more of a scammers paradise for the imported Chinese junk that Wenig has partnered Ebay up with during his tenure. China is supposed to be Ebay’s future but they couldn’t even beat out Alibaba for the stand alone business in China, their partner and their future.
Once again Ebay gets outsmarted by its competition.
Now they have to unwind all that they have done with their “Branding” the Ebay name with Flipkart and start all over. Ebay may make some money on the deal but once again their reputation and business acumen takes a hit as they once again got outsmarted by their competition.
I am sure that WalMart is glad that Ebay is selling their stake in the company as I am sure they have no desire to be associated with Ebay in any way. Now Ebay gets to try and start all over in India and then try to regain the trust and business that they gave away to their competitors.
I wonder how this will be reflected in their Growth numbers for the 2nd Quarter 2018??
They need to concentrate on the main site before attempting to create business in a third / fourth world country. And who did Flipkart sell to? None other than the company with the deepest pockets of all.
Wal-Mart and Amazon are eating their lunch in the US, and they think they can compete with them in India? WM and the River have unlimited resources which Ebay simply does not possess.
http://nhanhieulogo.com/dang-ky-nhan-hieu-tai-ha-noi-nd,24724
Who knew Dummy Wenig was also a needful doer?
One has to wonder how many opportunities eBay has passed on to buy companies that has the tech and the product know how to improve their main asset, the website. His priories are clear, maintaining a good relationship with wall street analysts and using precious cash to buy back stock in attempt to keep the stock elevated so he can cash out his holdings and keep his WallStreet Bros on his side.
The insider sales tell the stories. He let go of quite a bit when the stock was in the 40s after he announced the Payment service.
Wenig is a living breathing example of Steve jobs Management theory called the “Bozo factor”. People who are in high places who probably shouldn’t be anywhere near them tend to hire people of lessor abilities so they will always look good. It seems that Wenig was one of the Bozos until he became the top bozo and carrying on the Bozo tradition he has hired nothing but the very worst bozos who in turn hire more bozos . It works it’s way down the line until you have a company filled with Bozos who realize the chances of getting gainful employment at a top tier tech company are hovering below zero. So they do stupid Bozo tricks like cheer free returns as the greatest “vision” /Hallucination that Wenig has had. It surely will get sales up to real double digit growth for a quarter or two juiced by subsidized sales.
If Jobs were alive, he could hold up eBay as a Cautionary tale that validates his management theory.
Very well put I had all but forgotten Steve Jobs “Bozo” theory.