Answer:
EBay lost out because they did not have the right strategy, and were unwilling to incorporate Chinese local content in their process.
Explanation:
Strategy
With regards to strategy, while Ali baba gave local producers freedom to upload their goods on their platform at zero cost; Ebay charged fees from local manufacturers/producers of item for uploading unto their digital platform.
Over confidence
EBay had experienced success in western countries, hence it was unwilling to incorporate Chinese local content in it's process. EBay's server and IT team were based outside China, and this sometimes made their digital platform in China slow, costly and not user friendly like Alibaba.
LESSON TO BE LEARNT
LOCAL CONTENT
Non Chinese e commerce giants like Amazon, needs to ensure that they incorporate Chinese local content in their process, to enable them survive in the Chinese market space.
