Yahoo teams up with eBay on auctions in Japan

The alliance pairs eBay with the company that pushed it out of the market in Japan in 2002.

By March, users in Japan would be able to bid on items for sale on eBay through Yahoo's auction site. eBay will have similar interoperability on its American site by the middle of next year.

The two companies are already partners in the US, collaborating on online payments, advertising, and communications services. Other deals have been struck between Yahoo and eBay in other markets.

In the future, the partnership could be expanded beyond auctions to some of eBay's other businesses in the future, Yahoo Japan said.

The companies have also announced a new site called 'Sekaimon' -- Japanese for global shopping -- which translates eBay items into Japanese as well as helping with shipping and customs. Revenue there would be shared.

Yahoo and eBay have solid growth in their auction properties. Yahoo Japan's auction site has grown some 27% over the past year, while eBay here in the US has grown 21%.

However in each other's markets, they didn't do so well. eBay never caught on in Japan as Yahoo's early start in the market and reputation gave consumers little reason to switch to eBay when it arrived on the scene in 2000.

Similarly, eBay's success in the US made it hard for Yahoo's auction site in the US to ever gain a solid footing -- it closed down earlier this year after nearly nine years in operation.