Alibaba accounts for more than 80% of all online purchases in China. As a result, the risks are significantly reduced. These elements are very difficult to control and manage. Now things are crystal clear! For the website interface, they. For once upon a time, eBay has got the position of being the leading e-commerce platform in China. When entering into a new market, there are many aspects that must be considered in order for a company to be successful. Ma and his company had come a long way since May 2003, when they first launched the Taobao website.
At that time, eBay China controlled the recently established market, holding over 70 percent share. In 2013, Alibaba made more than 10x as much money as Amazon. Are the two really destined to be arch enemies or is it all just exaggerated drama? If your coat only showed up on ebay. Rather than having to rely on the instincts and trust of individual website owners, Alibaba could set up escrow or draw accounts that website owners would deposit money into, acting as a buffer between the website and the foreign manufacturer. The money will be held in the Alipay. Jack Ma and Alibaba have a different focus.
Why such a massive difference? One is that not all private sellers on Taobao have a stock of goods, and that could cause problems with exchanges or refund of nonconforming items. However, this does not mean that buying on Taobao is risky or not reliable. Pricing was changed to conform to that of the parent company. Competing for Partnership Taobao is more flexible and faster in reponding to users. As an impressive strategy, Taobao has made its services for free during its first five years. Now, if Alibaba wants to take on the responsibility for making sure goods are up to standard and act as the arbitrator, great.
Therefore, the risks are pretty much reduced. » eBay had poor customer service, there was no telephone line, only through email, did not establish the rapport necessary for Chinese business. But in China, affect- and cognition-based trusts are highly intertwined, even in business. Obviously, there are still loopholes of the supports for online auction, especially the norms and laws regulating online behaviors and preventing online fraud. It could turn the company upside down overnight. The external environmental factors also did have an influence in the launch of Taobao. He buys a stock of items to sell - perhaps a hundred or a thousand - at a wholesale price.
You have to realize that there is always going to be a minimal degree of risk, just as there is with any place that you do business with. If you are using flat rate shipping it doesn't matter which site you use as long as you specify shipping costs. Taobao designed its categories in accordance with the typical structure of a Chinese department store. However, when Yahoo entered the Japanese market and dominates the auction business rapidly Haberberg and Rieple, 2007 , eBay firstly had failed in Japan , and decided to close the Japan website in early 2002. Hi Scott , First of all let me apologise for reverting so late to your mail. By by the end of 2014, Alibaba has grown on to become one of the largest and most valuable ecommerce companies in the world. What are your thoughts on Alibaba vs Amazon? It was found by Alibaba Group on May10, 2003, Taobao www.
What could eBay have done to avoid defeat? Taobao is now so big, that it has become a proxy for the entire e-commerce sector in China. But if a new portal gives the facility , do you think there will be takers for depositing money in to an escrow account of the portal? » What are the reasons for the defeat of eBay? Not only do they sell their goods direct from Alibaba, and Alibaba Express, but also on Ebay and Amazon. To shop on Taobao, you would need to consider a few things. Competition among e-commerce platforms is quite common since technology has been developed in a way that can serve people well. So what explains this monumental difference? Although the result was far away from some previous prediction, it was still reasonable from my perspective. Amazon generates significantly higher fee revenues. To say they have a stranglehold on eCommerce in China is an understatement.
AliWangWang interface — Taobao sellers have to use their national identity card and their bank account to do their registration on the site. A comprehensive online payment system was needed. We fight for the little guy. One more time, we can see that Taobao is perfectly adapted to the Chinese culture. Chinese consumers were not familiar with online marketplaces, and merchants were reluctant to sell online without significant incentives. And building out warehouses in their attempt to take over the eCommerce world is no small or affordable feat.
We think China has tremendous long-term potential and we want to do everything we can to maintain 1 our No. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: cwo gsb. Symbolic is very important to doing business in China unlike in the occidental world. The technology has been evolving and nobody should let this opportunity go. As eBay has acquired the EachNet. Trites Jie Yue Kathy 200706289 June 10, 2008 1 Introduction Being the largest online trading company, eBay has launched websites across the world, including thirty other countries in addition to its original U.
When eBay started in the west, people posted cheques or postal orders but neither of these is common in China. The infographic below compiled by depicts the growth track of these two ecommerce giants. One failed while the other prevailed. EachNet was copyed from eBay's business model. As it confronted the difficulties raising capital, eBay entered China with its acquisition of the EachNet in 2002.