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Taobao.com, is known to be the popular online destination site for shopping, socialiazing and information-sharing. This site will be launching a new platform for both major domestic and overseas consumer product makers and retailers in order to sell directly to Chinese buyers. The new system to complement the existing public site has been established to fight back with other competitors such asWal-Mart and B&Q.
The Taobao Shopping Mall is going to be online in March, and will charge retailers based on their transaction volume. The Website, which has beat eBay Inc in China for its free service, is trying to be profitable and pave the way through for the public."We want to make it a source of quality products for buyers of good taste, like traditional department stores, with guaranteed quality, good compensation policies and more convenient payment methods," said the officer of Taobao.
It mentioned in the news that the target is to have about 700 stores available to buyers for the launch of mall.taobao.com, which will be parallel to Taobao's C2C business that is free to all users. Companies have to pay five percent of their transaction value to Taobao if their outlet fails to sell more than one million Yuan (US$133,333) a year. Discounted commission is provided for bigger sellers. Furthermore, they have to pay a 5,000 to 15,000 Yuan one-time deposit for Taobao to compensate shoppers if shoppers make a complaint.
Apart from that, in other news article, mentioned that Taobao.com is expanding its e-commerce model to include products and services provided by major manufacturers and retailers.
"While American B2C models have failed to succeed in China, Taobao's model will make B2C a reality in China," said Toto Sun, Taobao.com's General Manager. "Because we are simply connecting large sellers to consumers, rather than taking possession of the goods and serving as a middleman, we are offering a solution that will benefit both manufacturers and consumers in China."
According to Sun, he mentioned that "Taobao's growth has been based on four pillars - trust and safety, the AliPay payment system, search and an active marketplace," With Taobao's trusted e-commerce community which leads to the market, it would be the ideal channel for both manufacturers and retailers to reach out millions of customers there and expand widely as every people in China loves to do online shopping. With this, it will make China market grow more successfully. Furthermore, it will also increase the number of online shopping each year when people change their attitude to purchase goods online.
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References:
Shanghai Daily 2008, Taobao.com launches online shopping mall, viewed 7 September 2010
http://www.china.org.cn/english/business/239421.htm
Stone 2008, Taobao.com launches B2C services, viewed 7 September 2010
http://resources.alibaba.com/article/10059/Taobao_com_Launches_B2C_Services.htm
First, start by explaining what Taobao is, before proceeding to elaboration.
ReplyDeleteok.. well actually Taobao is where China people do their online shopping to buy stuff. Its similiar to eBay and Amazon with many independent stores listing their products and shipping directly to any customers. The reason why China prefers taobao is that China produces a lot of stuff, but most of the brick-and-mortar retail selections are pretty poor.
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