RESEARCH REPORT: ALIBABA.COM.

Another objective of our research project is to learn about e-business models. So other than the transaction broker model which you've seen earlier, we would like to introduce to you another e-business model that we came across online; the E-Marketplace. The website we chose to illustrate the model is Alibaba.com.
Alibaba.com Limited is the global leader in business-to-business (B2B) e-commerce. Alibaba Group makes it easy for anyone to buy or sell online anywhere in the world. They are a family of Internet-based businesses that encompasses business-to-business trade, retail, payment, business management software and classified listings.

Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online through three marketplaces:

1. A global trade marketplace (www.alibaba.com) for importers and exporters
2. A Chinese marketplace (www.alibaba.com.cn) for domestic trade in China
3. A Japanese marketplace (www.alibaba.co.jp) facilitating trade to and from Japan

The key benefits for users of Alibaba.com are reduced purchasing costs, greater flexibility, saved time, better information, and better collaboration.

However, there are also drawbacks for users of an e-marketplace and they are cost of applications, transaction/subscription fees, trust and safety with online payment, etc.

Alibaba Group has got that covered from the start. Alibaba.com is a community built on trust. Right from the beginning, they recognized that trust and safety are fundamental components of e-commerce, as they are for all areas of business.

They are committed in helping to make your trading experience safe, honest and fair. They also foster an environment of trust and safety by providing as much information as possible about potential buyers and sellers, providing safe trading resources, developing and enforcing rules and policies and protecting intellectual property rights.
To enhance security of the buyers and credibility of their suppliers, they promote the Gold Supplier icon. Gold Supplier is the highest and most premium level of membership for suppliers on Alibaba.com. In order to qualify for a Gold Supplier Membership, a supplier must meet a set of mandatory requirements, including passing an authentication and verification procedure by a third-party security service provider.Alibaba.com also advertises trade shows on their website. They also have AliExpress, where you can buy online at factory prices and they have almost everything, ranging from electronics to lifestyle clothings to personal care products to time pieces and jewelry. Bringing shopping and payment to your doorstep!We have testimonials from Alibaba's buyers and suppliers from around the world to further complement Alibaba.com as an e-marketplace:

From their buyers:

1. "Through Alibaba.com, we meet reliable sellers with innovative ideas who help us provide exceptional value to our customers." - Paul Greenberg, DealsDirect.com.au (Australia)
2. "The chances of us meeting our supplier Sunway without Alibaba.com would have been like winning the lottery!" - Phil Weil, Global Product Resources (USA)
3. "Alibaba.com allows me to find more products, more suppliers so I have more to offer to my customers." - Kenneth Koegler, Intrasolutions & Consulting (Hong Kong)

From their suppliers:

1. "With Alibaba.com, I don't have to worry about expensive marketing strategies. It's the perfect tool to serve all my marketing needs." - Sanjay Ranawat CEO, Krish Exports (India)
2. "Today we believe that business is strongly linked to the Internet and Alibaba.com is a very useful tool." - Charles D'Haussy, EverFast Rechargeables (Hong Kong)
3. "Alibaba has proved itself the most efficient and valuable tool and a major help in our everyday business activities." - Panos Dimitriadis, GPS Trading (Greece)