Conclusion

Conclusion

Alibaba is the largest e-commerce company of the world. The rise of Alibaba can be contribute to its company culture and implication of knowledge to its success. They understand the local buyers and sellers better than western competitors. Ebay, Amazon, Newegg all eye on e-commerce, but none of them have achieved noticeable market size.

  

Network effect protect it from most other competitors. It established a credit system. Buyers can rate the sellers for the product and transaction process, and all other buyers can see the rating. Virtual store like Alibaba provided a convenient shopping channel which Alibaba’s virtual store is a great platform that provides an assortment of product and eventually consumers will able to stroll the virtual stores which similar to what we are shopping in traditional stores.

Alibaba is a 24 hours operating virtual store, it allows the customers to search, buy, and pay the products not only during daytime, but also during midnight. Alibaba create their own strategies and support to consumers like payment protection, on-time shipment and product quality protection. Alibaba provided an excellent virtual payment system to sellers and buyers. Visa and Master card payments is the most frequent method being used because it allow the customers to make payment through online without transferring money from bank.

Alibaba choose to use e-commerce to help their company to boost sales and marketing. Live chat can be say as important tools use in e-commerce. By using live chat system, it enables the customer to respond in immediate action and is more efficient as compared with email. Customer can ask the service agent about the problem they faced when shopping in Alibaba. Service agent are able to connect with the customer in a real-time basis and help them to solve problem without delaying time.

Alibaba boosted its sales and marketing by growing active buyer. Alibaba grew active buyer by focus on global imports, rural expansion and Chinese centers of commerce. In year 2009, Alibaba encouraged merchant on Tmall which is also known as Taobao platform that is similar to Amazon. Alibaba encouraged Tmall to offer promotion on the Single Day as a way to boost sales between two holiday seasons in China – Golden Week and Lunar New Year. They also grow active buyer by giving promotion when Valentine’s Day and most other popular holidays in China, where the customer will focus on buying gifts or others.

Alibaba offer the shipping cost in the reasonable price in order to fulfill satisfaction of the customer. Customer are able to continue shopping in the site because Alibaba helps them to save a lot of shipping cost as compared with other online retail shop. This instills good reputation and nurtures customer’s faiths toward Alibaba thereby encourage the customer to purchase more which lead to its today success.