eBay and Next Generation eCommerce

by Lee, Jae Hyun (MD, eBay Asia Pacific)

1. eBay's 2 core business : eBay(eCommerce) + PayPal(Payments) ++ Skype

2. 3rd most profitable company in internet business : 1. google, 2. Liberty Media

3. eBay : The world's largest online marketplace - where practically anyone can trade practically anything at any time

4. eBay : auction style

5. As a retailer, 10th largest in US

6. eBay Korea ins No 3. in Korea. 

7. PayPal : secured transaction through email

8. PayPal : 24 countries, 1/3 of UK people, 100,000+ websites accept PayPal today

9. PayPal now have a mobile App

10. Beyond eBay, PayPal, they have so many sister companies. 

11. eBay APAC driving eBay's growth

12. Asis pacific focuses on primary market, while NA & EU targets secondary market 

13. CBT : Cross border trade. eBay is the only global marketplace can facilitate CBT

14. eBay enables the local sellers to sell their products to all over the world.

15. Korean market account for 68% of Asia pacific market

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Next generation eCommerce

1. 3 key trends : digital, mobile, social

2. Mobile industry as new paradigm : within 5 years more users many connect to the internet via mobile that desktop PC

3. Graphical -> Touch, Mouse -> Fingers, Communication -> 

4. mobile commerce : 15M+ users and growing

5. Too many internet facilities in Korea hindered adoption of Mobile in Korea

6. PayPal try to be a digital wallet. By touching, you can transact your money to your friends. 

7. Social Media, a new frontier

8. Using bar code in every products, you can search information about the products and also could sell through eBay

9. What are the implications for you? -> customer focus : future change will be more turbulent. Phase of change.

10. How to make money? : Find unsolved problems and solve that problems. 

11. Customer focus, Innovation, Leadership

12. CBT will be huge phenomena.

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Korea's online shopping tariff is too low at around $100 comparing with other countries like Australia, where at around AUD1,000

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In terms of Korean company's failure in global market, for example, Dialpad, Samsung's Tablet PC, Cyworld

1. Too early introduced to the market and then almost impossible to reach the mass at that time

2. Functionality was not so good. 

3. Poor marketing

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eBay’s Asia Pacific marketing manager Jaehyun Lee conducted this special lecture under the theme of ‘eBay and next generation e-commerce.’ At first he introduced eBay’s general business including eBay, PayPal and then moved to future trends in e-commerce industry. Two things captured my eyes during his lecture. One was importance of PayPal and the other was CBT (Cross Border Trade). Now PayPal – an email based cash transaction service – played a great role to boost up e-commerce. Not only eBay used PayPal but also more than 100,000 web sites accepted PayPal for their transaction because of PayPal’s convenient and secured transaction. It means that eBay now has the power to take control of much virtual transaction in e-commerce. In my opinion, business model of PayPal can be compared to the that of traveler’s check by American Express Card, since an organization that are able to control much of cash transaction might earn much money by leveraging those transactions eventually. CBT was also very interesting model to me. Now virtually anybody in the world could sell his/her products through eBay’s CBT without the limitation of border. Sellers in the China, Korea or Japan don’t need to open their real shop in the US to sell their products. Instead now they can upload their products in the eBay’s auction site and then they could sell their products through eBay. eBay helps those local sellers by supporting organized logistics. Now we are seeing virtually integrated global market at CBT. CBT definitely will drive the growth of e-commerce market for the long time. For local sellers, this will increase the direct accessibility to customers, decrease time to reach customers, and will decrease complicated skill to promote their products in global market. Whether many government try to regulate this kind of CBT or not, CBT will be megatrends in global e-commerce market in near future, I think. At Q&A session Dave asked why some Korean services or products like Cyworld, iLoveShool, Tablet PC from Samsung, Saerom’s Dialpad failed in global market. This question has been under discussion between Dave and me for long time. Regarding this question, he expressed his some opinions. First, those products or services were introduced too early to the market. So it was almost impossible to reach the mass to ignite the market. Second, those were technologically or functionally poor to meet customers’ emotional needs. Lastly, he pointed Korean company’s poor marketing capabilities. With his opinions, Dave and I concluded the discussion like these. 1. Unlike many Korean people’s opinions, Korean companies already have shown much creativity and software skills. The rising of Facebook, Skype and Apple could not be explained by Korean company’s lacking of creativity or software. 2.  In terms of intangible products or services, Korean companies neglected the importance of cultural differences outside of Korea and Korean companies also didn’t have many experiences in promoting and marketing those intangible things globally. 3. Korean companies isolated their products or services within their own regime. So, they were unable to construct unique ecosystem opened to 3^rd party. 

2010년 11월 30일