Nixse
0

Alibaba, the giant e-commerce in China, has been very loud worldwide with various eye-popping stats. 

For Fiscal 2022, Alibaba served approximately 1.31 billion annual active consumers through the company’s global consumer-facing businesses in the Alibaba ecosystem. What’s interesting, the company has hundreds of millions of consumers in China. 

China’s version of Black Friday, Singles Day, is very popular across the country. The recent outcomes, unfolding amid a backdrop of China’s economic deceleration impacting global markets for several months, weren’t straightforward or assured. 

In a notable shift, Alibaba and JD.com, which had refrained from revealing their Singles Day sales figures in 2022 for the first time, chose once again not to publish comprehensive results this year.

Alibaba merely stated that there was an increase in sales, but this left ambiguity around whether their revenue reached a new high. 

The peak of the company’s Singles Day sales was in 2021, and in 2022, Alibaba reported that its sales were on par with the previous year’s figures.

The majority already know that Alibaba is similar to Amazon and eBay as online retail shops. But, the company’s business model is dissimilar to the other leading e-commerce businesses in the United States. 

While Amazon is under one business roof, Alibaba has three business cores: Alibaba, Taobao, and Tmall. Each e-commerce website operates to connect various buyers and sellers, making Alibaba act as the middleman.

Alibaba

Jack Ma, a former English professor in 1999, launched Alibaba.com in Hangzhou with his 17 friends. Alibaba.com is a business-to-business trading platform, allowing manufacturers from various countries to connect with international buyers. 

Suppliers could list their products on Alibaba.com for free. They also have a choice to pay for an advantage to have greater exposure on the website.

Taobao

Taobao in Chinese means “search for treasure.” Taobao’s website is very popular among locals.

Taobao website launched in 2003 with a list of hundreds of millions of products and services from various sellers. Sellers and suppliers are free to join without any transaction fees. That particular policy pushed Taobao to gain a huge user base in China.

Unlike Alibaba, Taobao is a business-to-customer or consumer-to-consumer selling platform. It allows small businesses to start online selling. Taobao also provides buyers with the idea and rating of each seller based on previous transactions.

Tmall

Tmall offers various branded products targeting China’s growing middle class. Their website launched in 2008, catering focus on larger companies such as Nike and Apple.

Tmall established “Singles Day” in 2009 as their annual promotional event, giving discounts to users. Tmall requires sellers to pay a deposit, a yearly fee and a commission fee on transactions. That makes Tmall a likelihood to eBay and Amazon, who also collect payments from third-party merchants. Tmall also provides sellers with access to analytic tools which evaluate product performance and customers ratings. 

Amazon VS. Alibaba

Amazon and Alibaba, two giants in the e-commerce industry, have distinct business models and market strategies.

The company, based in the United States, operates as a retailer, buying products from wholesalers and selling them directly to consumers. 

It also offers a platform for third-party sellers, a vast distribution network, and focuses heavily on customer service. Amazon’s Prime membership, offering fast shipping and entertainment services, is a key aspect of its consumer loyalty strategy.

Alibaba, in contrast, primarily functions as a marketplace in China, facilitating transactions between buyers and sellers. It does not generally hold inventory or sell items directly.

Instead, Alibaba earns revenue through advertising and transaction fees on its platforms like Taobao and Tmall. Its ecosystem also includes payment services, cloud computing, and logistics, but it places more emphasis on enabling sellers and less on direct customer service. 

Both companies are expanding globally but with different approaches: Amazon’s direct sales and infrastructure and Alibaba’s partnerships and investments in local e-commerce players. Their strategies reflect their respective market’s characteristics and their foundational business philosophies.

Alibaba and Baidu

Alibaba and Baidu are two leading tech giants in China, each dominating different sectors.

The e-commerce giant, primarily known for its e-commerce platforms like Taobao and Tmall, has diversified into cloud computing, digital entertainment, and financial services.

Its business model focuses on retail and e-commerce, connecting buyers and sellers, and it has a significant presence in logistics and online payments.

Baidu, often referred to as the “Google of China,” specializes in internet services and AI technology.

It’s best known for its dominant Chinese search engine. Baidu also invests heavily in AI research autonomous driving technology and has expanded into cloud services. While Alibaba excels in e-commerce and retail, Baidu leads in search, AI, and internet-related technologies. 

  • Support
  • Platform
  • Spread
  • Trading Instrument
User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending


você pode gostar também

Leave a Reply