According to an announcement, consumer auction site EachNet.com will cease operations in mid-August. The closure notice was first reported last week by ITHome.
“We have adjusted our company’s operating strategy and decided to close the EBay network platform (EachNet.com) down,” read a notice available on EachNet.com, formerly owned by EBay.
Shanghai-headquartered EachNet started operating in 1999. Founded by Shao Yibo and Tan Haiyin, the startup raised $30 million U.S. from EBay Inc. in March 2002 to form a strategic alliance, according to a chronology available on the site.
The following year, EBay bought the remaining stake in EachNet for an estimated $150 million. In April 2012, the group, however, divested from EachNet by selling it to Chinese media conglomerate Tom Group, according to the site’s information.
Various estimates, albeit old, are available online about the shares the auction site holds in consumer-to-consumer trading in China. South China Morning Post, citing a case study in 2008, said Alibaba-owned Taobao.com had 80% of the Chinese c-to-c market. By 2012, its market share had climbed to 95%, whereas EachNet’s share had tumbled to 0.01%, according to PanDaily.
San Jose, California-headquartered EBay has limited its c-to-c role to a great extent since its founding in 1995, especially after selling EBay Classifieds Group to Norwegian marketplace operator Adevinta in June last year.