internet - Auction war hits Eachnet

The successful auction site Eachnet has lost customers massively after it has been purchased by Ebay.com in the summer of last year, local media report.
Especially the younger student users are shifting to the free services of Chinese competitors like Taobao.com and others. Eachnet has started to charge for its services and because Ebay moved its servers to the US, students have also to pay an extra fee that is charges for surfing outside China.
Taobao has been spending a fortune on TV-adds to attract the attention of new users for its free auction service, but has not developed any revenue model for itself yet.
Eachnet is also suffering from fraud as any many users tend to each others. The company has introduced a credit rating system to establish the credibility of users, but now the latest trend is to cheat the system in trying to get high ratings.