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Why Taobao is the King in online shopping market in China.

Online shopping is a product with theTaobao+(3)development of social informatization in the modern society.
Online shopping as a new type of consumption patterns, and favored by more and more consumers.
There are a lot of online shopping website in the world, like Amazon and eBay. Alibaba, however, as a nova plays an important role in the online marketing. And Taobao is an important part of Alibaba.

Taobao has many sources of revenue which include advertising, taobao store, pay treasure, express cost, shop decoration template cost, consumer deposit and promotion commission. People can browse products in any places and put their favorite things in the shopping cart. With the advent of o2o, tabao combine the online product and offline delivery greatly. And the entire basic features are free. People can join it easily.

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China is the biggest online market. More and more Chinese consumers put products that from all over the worldin the shopping cart. There are over 3 billion Internet users in the world, and number of Chinese citizens accounted for 20%. Amazon and eBay have tried to occupy the Chinese market, but all ended in failure.

Why Taobao can instead of them as the core of China’s online shopping?

  • Taking eBay as an example. The website differs from similarly structured eBay in two major regards. Firstly, the items sold on it are predominantly new and not used. Secondly, there is no setup fee or per transaction fee charged. This fee-free model has made it imensely popular among users in China. The website generates revenue by offering advertising and other services that help the seller stand out from a crowd of other sellers. Merchant advertisements appear with product search results. To add to this, when Tmall was launched there was a change in the revenue model. Targeted towards bigger sellers, there are several fees charged including a deposit, an annual fee and a per transaction commission.a4264f6b

And a good web design also can get many users. The products on tabao are clearly, and all in formation detailed. People who bought the products could leave the comment or post the pictures. Also it strengthens the user to interact with businesses. The main one is AliWangWang, the Alibaba’s chat. This tool has 2 main advantages. The first one is that Taobao proposes mostly fixed prices and only few auctions (on the contrary of eBay). It means that people can negotiate prices with sellers. The second advantage is that people can directly ask their questions about the product to the seller or asking for assistance.

Reference

http://www.entrepreneurial-insights.com/taobao-strategies-selling-products-online/

http://mashable.com/2012/05/20/ecommerce-china/#SxamYCCUs5qX

http://www.saos.biz/why-taobao-succeeds-in-china-unlike-ebay/

http://daxueconsulting.com/the-success-of-taobao-on-the-chinese-internet/

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