In 2003, eBay became the major player in China's e-commerce market after it acquired China's leading online auction at the time - Eachnet. However, it could not competed with Taobal, a similar online shopping website later launched by Alibaba Group, which provides better service tailored to local consumers.

While Taobao gained more popularity and more market, eBaby got less customers, and eventually had to shut its Chinese site in 2006.