eBay Scraps Transaction Fees in China

PlayCleverFully writes "The US online auction service eBay scrapped all sellers' transaction fees in China, in an effort to compete with local competitors offering free services, including Yahoo-invested Alibaba.com. The online auctioneer announced the changes on its China auction website, saying transaction fees would be waived, but small fees would continue to be charged for listing products on the site's webspace and for "feature" products. eBay's China unit, Eachnet, would also require all sellers to provide authorized online payment mechanisms to improve its credit environment, including PayPal and other escrow services, the announcement said. The move means that sellers won't get paid until the buyers receive and are satisfied with the products, it said."

Comments

Capitalism works well at first

[YearOfTheDragon]

Capitalism works - for the Chinese.

Capitalism must be cared for. You must care that there is enought competition. You must divide monopolies. Capitalism need a lot of work.

It's a system that works, but as any other system, when some people gets too much power the system is corrupted and stops to work.

In China capitalism is making the government to share its power, so it's working great. In U.S.A. the government is concentrating power in itself and in the big companyes, so capitalism works no more.

It isn't only a matter of what system you chose, but of whom is using it and how.