SubscribeTaobao Sales Recorded High and Launches Taobao Mall
Taobao, the dominating C2C platform in China owned by Alibaba Group, released its sales stats for Q1 of 2008, and launched an important new service, Taobao Mall.
According to Taobao, it recorded RMB 18.8 billion Yuan sales volume in 2008 Q1, an increase of 170% over RMB 7.0 billion Yuan for the same period of last year. It is bigger than the sales of Wal-mart in China in whole 2007. By 2008 Q1, Taobao has over 140 million active listed items, an increase of 131% YoY.
Taobao’s stats also revealed that 73.2% of the total sales are from second-tier, third-tier cities and urban districts, higher than 69% in last year, which reflects that the online shopping keeps penetrating into small towns, a healthy trends for e-commerce in China.
Taobao launched a new strategic service today, which is called Taobao Mall. Taobao Mall is a new B2C marketplace, only qualified sellers are allowed to join Taobao Mall. Qualified sellers include manufacturers with their own trademark, authorized distributors, franchised agencies. They need to guarantee all the items they sell are genuine and guarantee after sale service. Now, some famous brands in China have setup their flagship stores in Taobao, such as Dell and Lining.
Different from Taobao C2C service, Taobao Mall is not a free service, Taobao will take commission for all the sales on Taobao Mall. Considering this, why B2C sellers will join this platform? Because Taobao has make Taobao Mall a ready-to-use and convenient B2C store for each sellers. Taobao will help to promote B2C Mall among its over 50 million users, Taobao has its popular Alipay available to handle the online payment problems, and some good logistic service providers to choose from. Taobao Mall also provides unified shopping cart for shopping inside mall for better shopping experience. It significantly lower the difficulty for an offline distributor to start online business.
Taobao Mall is an important strategy of Taobao, and also one of the key revenue sources. It is also a challenge to many online B2C e-commerce websites. How can they survive in a competition with Taobao? It is possible that they will have cost advantage, because they need not pay commissions to Taobao, but unfortunately, they will need to pay commissions to Alipay for using it in websites other than Taobao.
While Taobao is busy with its B2C mall, Paipai, the C2C platform owned by Tencent, is also working on a similar platform. Paipai is inviting qualified sellers to join its B2C platform now, and it even provides service to let you import your trust credits and items from your shops in another C2C website directly.
Since Taobao takes over 80% of market share in China’s C2C market, and it also takes lead in building B2C platform, it is not easy for Paipai to challenge Taobao in near future. But another interesting question is what Baidu will do in its coming C2C service to compete with Taobao.
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[...] tangos wrote an interesting post today on Taobao Sales Recorded High and Launches Taobao MallHere’s a quick excerptTaobao Sales Recorded High and Launches Taobao Mall Taobao, the dominating C2C platform in China owned by Alibaba Group, released its sales stats for Q1 of 2008, and launched an important new service, Taobao Mall. According to Taobao, it recorded RMB 18.8 billion Yuan sales volume in 2008 Q1, an increase of 170% over RMB 7.0 billion Yuan for the same… Read the full post from China Web2.0 Review Tags: eCommerce, Taobao, Paipai via Blogdigger blog search for free music. [...]
Great post. Stuff like this misses most of the analysts.
[...] david wrote an interesting post today onHere’s a quick excerptTaobao’s stats also revealed that 73.2% of the total sales are from second-tier, third-tier cities and urban districts, higher than 69% in last year, which reflects that the online shopping keeps penetrating into small towns, … [...]
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[...] China Web2.0 Review wrote an interesting post today on Taobao Sales Recorded High and Launches Taobao MallHere’s a quick excerpt Taobao, the dominating C2C platform in China owned by Alibaba Group, released its sales stats for Q1 of 2008, and launched an important new service, Taobao Mall. According to Taobao, it recorded RMB 18.8 billion Yuan sales volume in 2008 Q1, an increase of 170% over RMB 7.0 billion Yuan for the same period of last year. It is bigger than the sales of Wal-mart in China in whole 2007. By 2008 Q1, Taobao has over 140 million active listed items, an increase of 131% YoY. Taobao’s stats also rev [...]
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