ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

eBay re-enters Japan e-commerce market with Giosis acquisition

US company to buy local operations of online shopping site for $700m

The logo of eBay is seen at headquarters in San Jose. (Photo by Shinya Sawai)

PALO ALTO, U.S. -- eBay announced on Tuesday that it has agreed to buy the Japan business of Singapore-based online shopping site operator Giosis for a reported $700 million.

The U.S. e-commerce company will purchase the assets of Qoo10's online shopping site in Japan, re-entering the country's online shopping market.

eBay first entered the Japanese market as an auction site in 1999, but poor performance forced it to pull out in 2002. Since 2009, the company has supported cross-border e-commerce business of local companies in Japan.

"We have been an investor for Qoo10 for eight years, and this is now becoming one of the fastest [growing] businesses in Japan," Devin Wenig, president and CEO of eBay told The Nikkei. "It is the time to make [it] a part of our overall plan to expand across Asia."

"Japan is the third largest e-commerce market in the world. It is the market that is growing, but still underpenetrated if you look at the percentage of e-commerce compared to the overall retail," said Wenig. "So we think that there is a lot of room to grow."

The acquisition is expected to be completed by the end of June, after approval from the regulatory authorities.

Giosis is a joint venture set up by eBay that operates a mail order site in six Asian markets, including Japan, China and Indonesia. Qoo10's Japan business has about 2 million users, mostly among the younger generation.

eBay grew rapidly as an online auction site, but is now predominantly used as a regular e-commerce site; it sells nearly 90% of its products at fixed prices.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media