eBay recently purchased 20 percent of Vietnamese auction site PeaceSoft, giving eBay another foot in the Asian market.
eBay paid a reported $2 million for the acquisition, which will allow the company to have a member on PeaceSoft's board and help the company plan and execute an expansion. According to Nguyen Hoa Binh, PeaceSoft's founder, that expansion could be substantial. He says his company could grow by as much as 80 percent and adds that his company, which has about 1 million users, is worth around $20 million.
eBay has been interested in Vietnam for some time now. The company opened a Vietnamese site in 2009 after partnering with Vietnamese marketplace ChoDienTu.Vn.
While Vietnam, with an estimated 27 million Internet users, is a relatively small market, it has a high number of mobile phone users—about 66 million—and was one of the "world's most attractive" up and coming markets for retail investment, according to 2008 Global Retail Development Index.
"Entering into a non-English speaking market like Vietnam is a challenge for eBay," Binh says. "It's a wise move to combine with a local partner."
eBay and PeaceSoft know each other well and have been working together since 2008, according to news reports.
Other Entries by this Author
Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.