Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Feb 9 2014 21:48:09

Exclusive: Alibaba Subsidiary to Launch eBay Rival in U.S.

By: Ina Steiner

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eBay's rival in China is backing a new marketplace set to launch soon in the U.S. Alibaba's new subsidiary 11Main.com has been onboarding third-party sellers since the fall with the help of Auctiva and Vendio, two eBay listing tools acquired by Alibaba almost 4 years ago. Through those acquisitions, Alibaba gained 250,000 eBay sellers that accounted for an estimated 5 - 10 percent of eBay listings.

Alibaba and 11 Main declined to comment for the story in tomorrow's Newsflash newsletter, but EcommerceBytes has spoken to some sellers who are participating in the pre-launch. One such seller said he was excited about the new marketplace because it could be a viable competitor to eBay, "When I hear that the biggest internet presence in China is behind this, that's an attention getter. That makes it real and different from all the other competitors. They have the money and time to make it work."



Alibaba benefits when sellers use its product sourcing marketplace to sell on eBay.com. The fact that its subsidiary has chosen this time to launch a marketplace in the U.S. may say something about how those sellers are faring on eBay, which has chosen to focus on large brands and retailers.

Smaller sellers have found it increasingly frustrating to sell on eBay as management shifts its strategy to focus on the sale of new goods by retail giants. While many eBay sellers sell on multiple channels, eBay could take it as an affront to learn that one of its largest partners, Auctiva, is helping power a rival marketplace.

The biggest challenge new marketplaces face is gaining access to shoppers. 11 Main and its merchants have an edge over most startups since they can promote the site to their existing customers.

You can read the full story in Newsflash, along with a pre-launch screenshot of the homepage. Let us know what you think of the 11 Main marketplace, which is set to launch soon in a special invitation-only preview before its official launch. Would its lower fees (3.5% including shipping & handling) entice you to try it?

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Readers Comments

Perminate Link for Exclusive: Alibaba Subsidiary to Launch eBay Rival in U.S.   Exclusive: Alibaba Subsidiary to Launch eBay Rival in U.S.

This user has validated their user name. by: Diaper Mess

Tue Feb 11 11:50:38 2014

Invitation accepted. It permits USA merchants to sell only within the USA too and not international if not interested. Lets see what U-turns eBay will plan to reroute this year.

What a Diaper Mess!

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by: moto-science This user has validated their user name.

Tue Feb 11 13:56:29 2014

I signed up right away. F-Ebay and Paypal.
They need the competition.....and I will do my part to encourage competitors.  

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This user has validated their user name. by: Ric

Tue Feb 11 17:33:19 2014

A few other questions come to mind.

Since Alibaba already owns Vendio and Auctiva, will eBay cut off another appendage and banish these listing tools from eBay?

Such a move would be sure to motivate Vendio and Auctiva users to abandon eBay and join the party over at 11 Main.

I can't wait to see how big a chunk of business this takes from eBay when it goes live. eBay's losses will be both in revenue from fees, subscriptions etc... and from a further decline in sales as buyers will likely find the 11 Main marketplace to be everything that eBay isn't - uncomplicated and easy to use.

I can't wait until this battle heats up.

Mr Donahoe may have been able to hold his own against Amazon, but he will prove to be no match for the agile, buyer & seller friendly powerhouse he will soon be facing as direct competition.

Was that an earthquake rumbling through San Jose or was it the herd of management thundering to conference rooms to figure out what they will have to do to maintain and salvage their marketplace now that there will be a serious competitor that will be ready from day one to take it to eBay.

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This user has validated their user name. by: Ming the Merciless

Tue Feb 11 19:37:04 2014

Prediction:

However ebay chooses to respond once the impact is felt will be over the top heavy handed, poorly implemented, ineffective, and will fail.

Don't you wish you could be reading all those texts flying out of the war rooms?

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by: PowerSeller2007 This user has validated their user name.

Wed Feb 12 07:47:12 2014

Bye bye ebay.  We are moving soon.
Don't you worry.  You won't be missed!

There must be many writers starting to write books on this topic

"Rise and Fall of ebay"

"RIP Feebay: 2005 to 2014"


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by: Digmen1 This user has validated their user name.

Wed Feb 12 12:20:00 2014

Yes why do American people always speak of Chinese made carp on auction sites, when their bricks and mortar shops are full of it,, and their cars and their tvs.

The time to buy American made was years ago when you had a chance to stop the chinese invasian, now its too late as nothing is made in the west anymore.



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by: Eric Saeger This user has validated their user name.

Wed Feb 12 16:57:40 2014

@Digmen1: You're correct that a lot of manufacturing is done in China.  The problem is that they do cloning without regard to brand trademark ownership.  When people say "cheap Chinese carp" they mean "these disgusting little insects are too cheap to pay for licensing."

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by: foothill This user has validated their user name.

Wed Feb 12 19:23:51 2014

Will be interesting to see eBay's reaction and next move.

After..11 main have smashed eBay, what's next ..??

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by: rudestar This user has validated their user name.

Thu Feb 13 12:32:04 2014

Asked for invitation to sell.
Received.
Thank you for requesting an invitation to sell at 11 Main. Unfortunately we will not be supporting the Auto category on 11 Main.  We are focused on the Fashion & Style categories - such as Apparel, Home and Collecting.  

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by: LinneyPinney This user has validated their user name.

Sun Feb 16 00:52:04 2014

When Ina broke the story on Feb. 9, I read it and applied to 11 main right then and there. I was accepted with 18 hours. I am building my store now.  The customer service for sellers is something that it have never experienced with eBay or etsy. It is  amazing! I feel like I actually matter.
The build out will take a while, but so far the sight is beautiful and all curated by 11 main staff. It looks nothing like alibaba. I am looking forward to working with these people.
There is no feedback and no DSRs. No competitive advertising on seller's item pages. I am very excited about participating on this site even though I am launching my new website that I built on shopify next week. And yes, I learned about shopify here as well.  11 Main still has so much to reveal even to we sellers who are building stores, but so far, I am very impressed. I'm very excited to be involved with this project!

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by: comet This user has validated their user name.

Sun Feb 16 00:54:37 2014

Well that just shot one of MY hopes down---no Auto or presumably Motors category.  Sigh.

And unless they decide to support vintage or used higher end clothing I am once again STUCK with Flea Bay.  

I will say::::  I was looking for a source of hard to find items and tried Ali Baba about a year or so ago.  Did not find what I was looking for but there were vast listings for all sorts of stuff---just nothing that remotely "matched"  any search terms I was able to come up with for what is not that exotic an item! And yes;  most of the things I DID find were in China with extremely poor skills to answer even simple questions.  Now I am sure they did better than I would have in Mandarin but--I am NOT trying to sell in a global market place with NO global skills!

And even now I STILL get at least 3 or more updates to that search from Ali Baba every WEEK.  

Lets hope that they branch out to all categories;  that they find a way to keep search simple. relevant and level;  and that every one who CAN at least opens a shop there and has the chance  to LEAVE ebay when the time comes.

In other words--the eBay Play Book from ca 2005.  Or earlier.  A Study in Business Practices. Authored by some guy name of Pierre Something.

The rest of us---

Well it was nice knowin' ya.  

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by: Recollections This user has validated their user name.

Sun Feb 16 04:23:17 2014

The best thing about this is that they will most likely bring ALIPAY into use in a huge way.
ALIPAY is ten times better than PreyPal and a lot cheaper.

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by: spinner This user has validated their user name.

Sun Feb 16 13:24:17 2014

I am disappointed that 11main will only accept sellers shipping from a US address. That leaves a lot of us out

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by: sells-a-lot This user has validated their user name.

Sun Feb 16 16:50:32 2014

Don't get too excited about the site. Most people who are requesting to sell there are being rejected. Unless you are selling something very unique and with stellar photos expect to be left out.  

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by: Mr. Me This user has validated their user name.

Sun Feb 16 18:20:12 2014

I found it easy to sign up and get accepted, I gave them the address of my eCrater store.... I'll set up a 11 maib store and Lets see what happens next!

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This user has validated their user name. by: The End

Mon Feb 17 08:46:06 2014

If 11 Main wanted to compete with Ebay, it would not use PayPal. But rather, it would have an in-house charge card system like ETSY.
If you attempt to open a store on 11 Main without using PayPal, Authorize.net is the alternate. That adds to your selling fees. Then they will tell you "We'll have other payment choices later". That statement is FALSE.

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by: brokentoys19 This user has validated their user name.

Mon Feb 17 12:55:34 2014

It seems counter intuitive that they would even contemplate using PayPal, considering Alipay and or direct credit card checkout. But if they do, it likely means a pre-existing number of people who will never use the site, if not actively bash it. Not to mention the those who will use the very same scamming tactics/loophole exploitation being used now on ebay.  

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This user has validated their user name. by: Philip Cohen

Tue Feb 18 17:48:21 2014

Nice to know that the eBay product has finally been stamped with a "best before" date ...

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by: digger This user has validated their user name.

Tue Feb 18 17:50:31 2014

Bummer - just received an email from 11 Main saying they don't need any more used booksellers:

Dear Chris,

Thank you for your interest in being an 11 Main shop owner.  

Unfortunately, we are not in need of additional assortment in your category at this time.

Best of luck to you and your shop!

Happy selling,
 
11 Main

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This user has validated their user name. by: bitbybit

Wed Feb 19 23:50:01 2014

Well I just received this today:

Thank you for your interest in being an 11 Main shop owner. The 11 Main shopping experience relies on careful selection of the right product assortments. Unfortunately your product submission does not align with the current direction of our assortment themes and shop stories we will be presenting on 11 Main.
Best of luck to you and your shop!
Happy selling,

11 Main

I didn't submit a ''shop story'' but maybe I should have. My items are antique, collectibles, pottery and quality vintage jewelry. I also have hundreds of old paintings, lithos and prints collected for years but didn't give 11Main an URL example in art. Wonder if I could submit another request?  

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