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B2B at alibaba.Com. The development of E-commerce. Netizen Net friend Net merchant. Functions of B2B platform at alibaba. Searching for market information Developing new clients Promoting the development of the small and medium-sized enterprises (SMEs)
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The development of E-commerce Netizen Net friend Net merchant
Functions of B2B platform at alibaba • Searching for market information • Developing new clients • Promoting the development of the small and medium-sized enterprises (SMEs) • Pushing the Chinese national economy forward
Alibaba’s Websites • www.alibaba.com • www.alibaba.com.cn • www.taobao.com (the second biggest C2C server provider , second to E-bay) • www.alipay.com • www.yahoo.com.cn
Contributions to the Chinese national economy • Data • Applications of enterprises
some data time website members visitors turnover Nov 1998 www.alibaba.com.cn 7.5 million 32.79 million 2.5 billion/year Nov 1998 www.alibaba.com 1.72 million 5.06 million 10 billion USD/year May 2003 www.taobao.com 10 million 90 million 4 billion/year Jan 2005 www.alipay.com 4 million 0.4 billion/month Chinese suppliers Sep 2001 3 billion USD/year Trust Pass Mar 2002 10 billion/year
Alibaba’s services • Chinese Suppliers/exporters:accounting for70% of its income, fee RMB¥60,000-80,000 /year ) • Trust Pass: accounting for30% of its income, domestic customers, membership fee RMB¥2300RMB/year • Alipay • Yahoo search engine • Bidding for ranking • Instant communication tools income 1million/day in 2003 profit 1million/day in 2004 tax 0.7-0.8million/day in 2005 1million/day in 2006
Chinese suppliers Promotion of Chinese exporters’ products to overseas importers at www.alibaba.com. Characteristics: 1 Authentication of credit by authorities 2 Multimedia Exhibition on internet with pictures and sounds 3 e-commerce support 4 Exportation promotion at fairs and exhibitions at home and abroad 5 Full Promotion in the biggest business community all over the world
Hangzhou Kairui Accessories Co. Ltd. • Became a member in Chinese Suppliers in May 2003 • Got nothing in the first 8 months • Hired professionals • Earned 2.4 million USD in 2004 • has over 30 long-standing clients now
Trust Pass Providing promotion services to its members among Chinese buyers at www.alibaba.com.cn Advantages: 1 Honesty first 2 Promoted from all aspects 3 Unique promotions channels 4 High efficient services
Guizhou Weimei Co. Ltd. • 1999 began to make use of the Internet • 2000 left the company • 2001 back to the company • 2002 became a member is Trust Pass • 14 employees in its E-business Department now • Sells RMB¥60 million a year
Bidding for Priority in Ranking • Keeping ahead of other competitors • Taking the initiative • Dominating the market • Increasing the possibility to conclude transactions
Wenzhou Hualian Co. Ltd. • 2003 became a member at Trust Pass • May 2005 participated in the first auction/bidding • Oct. 2005 Bought 600 keywords • Established professional team, working day and night online • Turnover: RMB¥ several million/year
1 ·· 2 ·· Information management system releases information promptly; 3 ·· Staying in touch with customers all the time; 4 ·· Enjoying the high efficiency of e-business; Super tools to tradeonline Powerful commerce search engine makes all the information easily available;
Hangzhou Kairui Accessories Com. Ltd.-buyer • Found a supplier in 5 minutes at My Trade Activity • Searched for 1 min • Confirmed whether it is on line • Instant communication • 3 members at Trust Pass have become its long-term suppliers
Shenzhen 99+1—seller Through My Trade Activity • Concluded transactions with over 1900 buyers Receiving 100-200 messages of inquiries a day • Inquired by customer from New Zealand over credit system • Sold 5000 digital cameras to an American customer from his Beijing Office in one month from the date of his first enquiry.
Working Habits at Alibaba • Being online more than 10 hours a day At My Trade Activity • Publicizing and promoting products • leaving message when at a meeting or being busy • Making use of the auto-reply function • Sending price lists and pictures of the products directly through My Trade Activity
Introduction to Alipay • Advanced online payment system, offering high quality and safe payment services for the e-businessmen • Alipay is a safe payment system put forward by Alipay company to secure reliable payment trading online. • A credit agency which keeps the pay for both sides until the buyer confirms that he has received the product and expressed satisfaction.
Without the third party buyer seller Pay to seller ship to buyer
Mode of Third Party Payment Third party 2、pay to third party 3、tell seller to ship 5、check and tell the third party to pay 6、pay to seller buyer 4.Make shipment seller 1、determine the required product
Examples of Alipay Applications 1. More than one thousand websites have joined the Alipay 2. A number of banks support Alipay 3. 80% of the transactions at www.taobao.com effect payment at Alipay
B2B Definition • Flow of information • Flow of goods • Flow of Capital • Low cost
Objectives of B2B Alibaba • Helping the enterprises make profits • Helping the enterprises develop
Lacking in human resources in e-business with the following abilities • Effective internet operational ability • Familiar with habits of e-traders • Practical and having a down-to-earth manner • No needs to know lots of technology