For those of you who have an Internet business, or for those who are looking for an additional means of earning income online, Alibaba is possibly a company that you have heard of. The Chinese-based company helps business owners from around the world get in touch with Chinese manufacturers. What does this mean for business owners? It means an additional source of revenue through the Alipay system, which Chinese consumers rely on when they are purchasing products from foreign made manufacturers.
As the world’s largest online marketplace, Alibaba.com has consumers, sellers, and businesses from around the world engaging in online sales. As a business owner, what this means for you is various platforms to sell from, billions of consumers to market to and simple profits to be made when you employ the right sales tactics, and the right online marketing strategies to get your online marketplace up and running.
Although tmall.com is the largest of the subsidiary companies, there are a number of platforms for businesses to grow through and with, and for them to sell through if they are looking to earn high profit margins. And, with Chinese consumers interested in purchasing goods which are manufactured outside of the United States, there is no limit as to how much of a profit you can expect to earn if your site is properly set up. Whether selling B2B (business-to-business), or C2C (consumer-to-consumer), or engaging in both marketplaces, there is plenty of room for growth, advancement and the ability to earn a high profit margin when using this online platform for selling goods to consumers.
Business owners are going to find it is even easier to set up their online marketplace in comparison to sites like Amazon and eBay, which are the main marketplaces here in the US.
What Exactly is Alibaba?
Founded in 1999, Alibaba is a publicly-traded Internet-based business. The B2B portal allows Chinese manufacturers to connect with overseas manufacturers in an attempt to sell more products to their target consumer audience, and to earn more income. As of September 2014, the company was valued at $231 billion, meaning it has greatly grown since its inception, and is a safe marketplace for businesses to engage in business, and for consumers to purchase. In September 2014, the company also received its IPO, which initially raised $21.8 billion, and increased to $25 billion, which made it the fastest growing and largest IPO in history.
With one of the most visited sites globally, Taobao is the online consumer to consumer site which is run by Alibaba. Similar to eBay, the company has accounted for more than 80% of sales in China, as of September 2014.
Jack Ma and 17 other investors released the first online marketplace in December of 1998, and only a few years later, in 2001, the company began earning profits through the online portals and marketplaces. In 2003, Taobao, which is the company’s consumer-to-consumer based sales site was founded, adding to the online appeal, and consumer purchase opportunities in China. The Alipay service system, which functions similarly to PayPal, also became its own entity in December of 2004.
In 2008, the Taobao Mall (Tmall) was established, which is the popular online marketplace, giving consumers yet another avenue to purchase goods from foreign manufacturers. In 2010, the company launched the eTao search engine, allowing customers to find the products they were shopping for, for the best prices, either through Taobao or through Tmall. In only 15 years, the company has grown exponentially, and gives foreign and local Chinese manufacturers and consumers the opportunity to earn big, make huge profits and gives consumers the opportunity to buy the foreign goods they want, for the most affordable prices.
This is the primary company of the Alibaba Group. It is also the world’s largest online marketplace, and B2B trading platform for small businesses. This branch handles the sales between importers and exporters, in over 240 regions and countries. Aliexpress.com is also run by this main branch, which allows buyers to purchase goods in wholesale quantities, and for a discounted wholesale price.
Taobao is China’s largest C2C marketplace. It was founded in 2003, and consumers sell a variety of retail products at discounted prices to other consumers through the portal. Much of the popularity had come in the fact that registration to the site was free, and commission-free transactions were offered to sellers when using the third party payment platform to accept payments from consumers purchasing their merchandise. In 2012, the online sales were over $1 trillion, making it by far the largest online marketplace for C2C sales.
Introduced in April of 2008, Tmall.com was initially meant to serve as a complementary site to Taobao for C2C sales transactions which took place. However, in June of 2011, it became its own business entity due to the growth and popularity of the site. For consumers who want to purchase foreign brand products, from Nike to Gap, Adidas or Ray-Ban, this is one of the most visited consumer sales portals to make the purchases through.
Tmall has over 500 million registered users. What this means for you as an online merchant is that you have this many chances to make a sale. And, when you pick the right online niche, and use the right marketing tactics to get your product sold, it is going to allow you to earn the highest profit margins possible using the online platform and giant. In comparison to other C2C sales sites, businesses who are on the tmall.com site see far greater revenues, and have to do far less in terms of marketing in order to reach their consumer base. Another main benefit of using the Tmall platform is that even businesses who do not hold a license to run a business in China can use the global tmall.com platform in order to sell through the site, and earn profits through the sales made through their marketplace shop.
This is the third party payment system portal which is used by Alibaba.com, and all of its minor subsidiaries. The popularity of using the third party system is that no transaction fees are charged for the merchants who are using the system to make or accept payments. It works on an escrow-based system. It allows consumers to make sure they are happy with the goods they have purchased, prior to any funds being released to the seller who has sold them the merchandise through any one of Alibaba’s subsidiary sites. With 300 million users, nearly half of all online transactions which are made in China, are done using this Alipay system.
The continued growth of the Alibaba company and its many subsidiaries make it a popular business venture for any small business owner, or for any individual who would like to enter the C2C consumer marketplace. In addition to the Alipay, Taobao and Tmall, the AliExpress and eTao, are additional platforms in which you can earn profits when selling goods to consumers online. And, with the recent IPO holdings which have been sold in higher volumes than any other company in history, it is safe to say that doing business with this online platform is safe for any business owner to do.
No Limits on Sales
Another reason why merchants can be so successful through the marketplaces, is that nearly anything can be sold. If you produce cookies, confectionery goods, clothing, shoes, kitchen accessories or any other goods, these can all be sold through the tmall.com and Taobao marketplaces. This allows nearly any business owner to engage in the world’s largest online marketplace, and allows you to place nearly anything up for sale on the site. If you would like to open a small marketplace, or if you plan on selling several different goods, the process is quick and easy, and with little to no money required to set up your site, you can begin making profits extremely early in the process.
Whether you have been selling products for years online, or simply want to begin with a large sales platform, Alibaba.com is the platform to begin your sales through. In addition to being the most visited marketplace in the world, it has over 500 billion potential customers, meaning you are bound to find a consumer that is interested in purchasing your goods, regardless of the items being sold. With so much room for growth, easy to set up sites and various platforms to sell through, business owners who would like to earn online revenue will find this is possibly the easiest site to do it with, and the easiest site to set up an online marketplace with as well.
Why Tmall Has Great Opportunities for Business Owners
The answer to the question is quite clear. China is the largest population in the world; as Taobao, Tmall and Alipay are the largest online merchants, this means great opportunity to earn high profit margins. As a foreign business, consumers want to buy your merchandise. If it is sold through the online marketplace, this ensures consumers will buy it. Furthermore, entering Tmall is going to allow for yet one more avenue to increase sales. It will allow you to sell directly to Chinese businesses, as well as the consumers living in the country. In turn, your business is going to grow, you will find it easier to sell products online and it will allow you to spread your merchandise to different regions of the world.
As the world’s largest online marketplace, small business owners are presented with a huge opportunity if their products are sold through Alibaba.com’s group. With several different portals to sell through, and over 240 countries and regions involved in the online marketplace, the opportunities are endless for business owners when they take the opportunity with Alibaba.com.
Whether you are brand new to online sales, have been selling on sites like Amazon or eBay for years, or are planning on beginning an online shop, Alibaba.com is the largest online marketplace in the world. It presents businesses with several businesses and online consumers to do business with. For this reason, when looking for an online marketplace solution for selling goods, this is the first site to visit and become a partner with if you are hoping to earn the highest profit margins possible as an online merchant.