The largest Chinese company for e-commerce Alibaba generates about 80 percent of all online sales in China, the company’s shares, which recorded more transactions than Amazon.com and eBay together, attracted mass of investors, so the demand for them far exceeds the supply.
10 ways on which Alibaba wins the competition, according to Forbes:
Alibaba in 2012 achieved sales of 420 billion dollars and so defeated the Amazon with 74.4 billion for fiscal 2013, and eBay with 16 billion in fiscal 2013.
2. The base profile
Unlike the United States where live 327 million people, China has them 1.4 billion and thus makes a greater base of potential users.
3. Day for shopping
Every year on November 11, China celebrate the day for shopping online when offered big discounts. Last year on this day Alibaba reached sales of $ 5.6 billion.
Alibaba has several platforms, and one of the most famous is the “Taobao” that allows the sale to private customers and small businesses. Unlike eBay, where sellers pay a commission to eBay, Alibaba charges for advertising.
“Tmall.com” is similar to the Amazon, and companies can offer their products. For example, Nike paid Alibaba a commission for each transaction, and unlike eBay’s PayPal, Alibaba is using for transactions Alipay.
6. Financial services
Alibaba is currently working on the establishment of financial services and banking relationships. So users will soon be able to invest and buy insurance through Alibaba credit card.
7. Biggest public offering?
If the 320 million shares in the Alibaba IPO enrolled at a maximum price of $ 68, the company would raise around 22 billion dollars, the highest in the history of the technology sector. By comparison, Facebook’s public offering in 2012 collected $ 16 billion.
8. Number of Users
Alibaba claims to have 300 million users. They employ more than 25,000 workers who are at the client service.
9. Negotiations with leading banks
In March, the company’s leadership negotiated with representatives of Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley.
10. Company value
According to estimates by the consensus of 12 analysts, the value of the company amounts to about 143 billion.
Below you can check the infographic that opposes the two largest e-commerce companies – Amazon vs Alibaba: