Yahoo! Japan and online auction site eBay have announced they are to link their services to enable users of one site to bid for items listed on the other site.Additionally, Yahoo! Japan stated that it may consider a closer agreement, including a capital partnership, "should the need arise".
However, company president Masahiro Inoue stated during a press conference that it has "no such intention at this point and [it does] not foresee specific circumstances in which such a need would arise".
The deal will make international bidding easier and, according to Reuters, it will provide eBay with another greater opportunity to access "lucrative" Japanese consumers.
Under the arrangement, the two firms are setting up a Japanese-language site called Sekaimon, which will enable its Yahoo! Japan users to browse items placed on eBay.
Additionally, by the end of March, Yahoo! Japan's own site will provide the same service.
Commenting on the company's future strategy in this regard, Mr Inoue stated: "[Yahoo! Japan is] also considering allying with eBay in countries where eBay has a strong foothold, but we will study this once the US and Japanese business proves successful."
However, casting doubt on the arrangement's potential of success, Mitsubishi UFJ Securities analyst Masato Araki stated that, when shipping and transaction fees are considered, user participation may be limited.
"For Yahoo! Japan, the move is unlikely to have a large impact on earnings," he added.
