The future about Alibaba

As a Chinese person, I like Alibaba’s performance. Alibaba became the most popular destination for online shopping, in the world’s fastest growing e-commerce market. I do not know what the limit of Alibaba is, but if Alibaba wants to be the best, they must need to get rid of restrictions from China. As I’ve mentioned already, Alibaba’s primary money making operations are from operations within China, this ratio is about 80%. Then, let’s look at Alibaba’s biggest competitor, Amazon. Amazon’s business comes from outside North America can get 40%. Amazon has the better track record of expanding outside their home market. This is the reason that why Amazon’s can get the higher reputation in the International market. About the future, Alibaba has a stranglehold on the Chinese market and Amazon is the undisputed US leader. This is definitely an unprecedented competition; they both have such a massive head start, and an intimate understanding of their market and models. It will be especially interesting to see how Amazon addresses Alibaba’s rise, and what their next move will be.

Reference:

http://www.ecommercefuel.com/alibaba-vs-amazon/

Alibaba made the world’s biggest online shopping day

This is a very interesting case, as a Chinese person, we all know that what will happen in November 11 each year. This is a special holiday; we call it “Singles Day” which means this is Single people’s festival. Thanks to the marketing smarts of China’s Alibaba Group. Every years Alibaba offers discounts promotions on its 11.11 Shopping Festival to encourage China’s unattached to treat themselves something nice. Alibaba understand what Chinese person psychology is, and use them. Alibaba knows how to pull off a sale. China’s biggest e-commerce site reported $9.3 billion in revenue on Tuesday during the Chinese celebration of Singles Day, a 62 percent surge from last year’s previous record of $5.75 billion. That led to the Chinese Singles Day became the world’s biggest online shopping day. Alibaba aims to make Singles Day a global event within the next three to four years, said JP Morgan analyst Alex Yao. I think this is possible; because there is no doubt that have a big profit here. Alibaba will attract more businesses to enter their mall in the future.

Reference：

http://www.cnet.com/news/alibaba-breaks-singles-day-sales-record/

The quality of service has become the key of success

How to improve the quality of service has been one of the issues which cannot be avoided. Since Alibaba completed the listing, Yun ma has been emphasizing the importance of service. I think Taobao is not good in this case. Many Taobao’s sellers are irresponsible and cheat, and these are my personal experience. Taobao also has good seller, but bad sellers will more easily to impact Alibaba’s share price. So, Yun ma led the Alibaba established integrated customer service unit. The new department was formed in line with Alibaba’s policy of putting customers before employees and shareholders, leading to a level of customer service which industry insiders say is much higher than its domestic peers, according to the Beijing-based China Entrepreneur magazine. That was a good start, because their customer complaints are inevitable in view of the huge amount of transactions on Alibaba platforms such as Taobao, which ships more than 30 million parcels daily. Learn to deal with these issues is the primary task of Alibaba.

Reference：

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20141007000032&cid=1206

Alibaba trials drone delivery service in China

Delivery service has been one of the advantages of Alibaba. They had a good partnership with SF Express which is Chinese best express company. SF Express has won many honors in China, and they let Alibaba become the best online shopping company, at that time. Now, Alibaba has developed a new plan which called drone delivery. The three-day, three-city test of the system began in Beijing, with deliveries being made from a single merchant operating through Alibaba’s Amazon-like Taobao Marketplace website. I think this is an interesting program, it is very novelty. But it also has weak point; it is the lack of safety and practicality, and it requires higher operating experience. Interestingly, Alibaba abandoned cooperation with SF Express this time. They chose YTO Express as their partner, which filed flight plans with aviation authorities and is otherwise managing logistics. I do not know this decision is good or not, YTO Express may have better technology which SF Express doesn’t have.

Reference：

http://www.gizmag.com/alibaba-drone-delivery/35934/