But why? Ordinary people would just assume that the first place would rightfully be assigned to the United States when it comes to digital media related stuff. Why is China taking the role as the King of E-commerce?
&. Instantly, this came into my mind.
The E-commerce that even exceed E-Bay.
Honestly, I was a bit skeptical of Chinese shops prior to my experience with taobao. I was afraid of scams and I was worried that their products were faulty.
......So what is the secret behind their success?
1. Operation Strategies
No Transaction and listing Fees
Taobao did not charge for any fees as they believed that network loyalty was their top priority. With this belief, Taobao captured the market effectively and took more than 60% of the market share in two years.
Strengthening cooperation with Banks
Taobao built trust among its customers by preventing possible frauds. This greatly increased the user's confidence on the credibility of online payment.
Establishing and identifying secure trading platform
Taobao ensures that the registers' information are checked by the Ministry of Public Security. Those who seek to use false identity information will be tracked. Such cooperation with authoritative departments have also increased its brand trustworthiness.
But apart from all these, what is more important to us users are Taobao's effective service strategies.
2. Service Strategies
Tmail
Tmail.com offers a shopping experience for increasingly affluent Chinese consumers that offers them the opportunity to buy Western brands. (Eg. UNIQLO, L’Oréal, adidas, P&G, Unilever, Gap, Ray-Ban, Nike and Levi's).
Feedback Service
Taobao users usually read feedback and view the number of 'stars' to compare items of one shop with those of others. This gives them better control of their choice of preference.
Alipay
An escrow-based online payment platform for transactions on Taobao.To ensure safe transactions, Alipay allows payment to be released to the seller once the buyer has received his or her goods in satisfactory condition. Alipay is partnered with multiple financial institutions as well as Visa and MasterCard to facilitate payments in China and abroad.
Aliwangwang (Trade manager)
Taobao in its market analysing, has pointed out that Chinese loves to bargain. And with this in mind, they created a chat program to facilitate the ease of communication between buyer and seller in which customers can inquire about products and bargain.
Taobao App
To further user experience for online shoppers and retailers, Taobao also launched an app that can be downloaded into our smartphones.
Taobao Agents
This service helped many overseas buyers who do not have a China address. Agents play the middle man role by helping foreign shoppers to liaise with the local chinese retailers.
Chinese Singles Day
Taobao is known for its cheap price. This is the main reason why I personally shop at taobao too. There are always promotions and discounts which attract buyers. Chinese Singles Day (11/11) is China's biggest e-commerce sales day of the year. In 2011, Taobao took only 8 minutes to reach 100 millions RMB in transaction volume and after the day ended, it reached RMB 3.6 billion.
Expanding to the global market
Last year, Taobao launched its Southeast Asian site which has a translation feature to assist and enhance foreigners' shopping experience.
As you can see, Taobao provides a wide variety of service to its customers. It is ubiquitous, it is globally available, it is interactive, it has a user-friendly interface and it also permits personalisation and customisation. Furthermore, it sells everything and anything, from clothes to furnitures at very affordable price. Users can also sell their second-hand items on Taoabo. Basically, it is like one-stop place for ANY kinds of shopping. With this, I believe that Taobao will continue to thrive as a leading e-commerce in the market.
Ref: http://www.academia.edu/6317928/Analysis_on_the_Successful_Strategies_of_Taobaos_E-Commerce & http://en.wikipedia.org/wiki/Taobao
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