| is a Hong Kong based online business-to-business | | | | responses from more than 1,100 members. |
| commerce and auction company that has developed | | | | Alibaba claims that it is the simplest and most effective |
| into a substantial resource for both Asian businesses | | | | way to find products and resources. Their membership |
| and Western corporations. Originally designed to | | | | base has reached the point (1.2 million members) that |
| connect Chinese businessmen with Western buyers, | | | | both Chinese and Western entrepreneurs wishing to |
| Alibaba manages a bilingual format that both Chinese | | | | engage in product sales can no longer ignore this |
| businessmen and English speaking businesses can use | | | | enormous marketplace. ''We reduce the sourcing time |
| to execute trades. | | | | by bridging geographies and time zones and putting |
| It is a straightforward wholesale marketplace, where | | | | thousands of products and suppliers in one |
| member vendors can display wares and prices. It also | | | | easy-to-use location," said an Alibaba VP for |
| operates the premiere Chinese auction site, an Asian | | | | operations. |
| version of eBay called Alibaba dominates the Chinese | | | | Both Alibaba and TaoBao currently do not charge |
| ecommerce market and is a major player for some | | | | fees from buyers or sellers. That has force eBay to |
| import-export markets on an international scale. | | | | change its business model in China as well. Alibaba has |
| In recent years, the company has aggressively | | | | a "premium" service that it provides to members who |
| expanded its sophistication and service array. In 2005 | | | | wish to sign on; indications are that TaoBao will adopt |
| Yahoo bought 40% of Alibaba for one billion dollars | | | | a fee structure at some point. |
| plus all of Yahoo's Chinese assets. Alibaba founder | | | | It appears that partnership with an indigenous |
| and entrepreneur Jack Ma has since then redesigned | | | | corporation is important. Google's efforts in China are |
| Yahoo's Chinese portal and attempted to market it as | | | | relatively recent. Yahoo has made its presence there |
| the definitive Chinese search engine. Alibaba has also | | | | a success by effectively turning its operations over to |
| developed an online funds transfer system with a | | | | Alibaba. They won the battle with eBay in Japan by |
| Hong Kong bank, attempting to establish a tool similar | | | | partnering with Softbank, a Japanese conglomerate. |
| to PayPal. | | | | So while the Yahoo auction site is inconsequential in |
| Recently the firm released a survey claiming to prove | | | | the U.S. it forced eBay out of the market before they |
| that product sourcing online through can cut the normal | | | | could get started. |
| sourcing cycle by 75 percent. members say it takes | | | | These are critical times for the major web players in |
| about three weeks to find the right trading partner and | | | | China. Less than ten percent of China's populace has |
| negotiate a deal through the Web site, compared to | | | | web access - however those early adopters amount |
| the average sourcing cycle of 3.3 to 4.2 months. | | | | to one hundred million people and many of them are |
| The survey found that 56 percent of members take | | | | businessmen. In ten years, China may be the biggest |
| two to four weeks to negotiate the terms of a | | | | economy - online and otherwise - in the world. Alibaba |
| purchase or sale from first contact to finalized | | | | has done an excellent job of staking out its domestic |
| contract agreement, while 17 percent say it takes | | | | turf and joining forces with the entrenched Yahoo in |
| them no more than a week. The survey was | | | | America and Europe. They'll give Google and eBay a |
| conducted from June 19 to July 9, 2006, and included | | | | run for their yen. |