More challenge or more opportunities in future

Right now, Taobao development shows a steady phase, even bottleneck, I think there are three reasons. First, the domestic C2C market has entered a relatively stable period, at least now have not been able to find a new breakthrough. And there also have more and more like an online department store, B2C C2C mode; second, network does significantly affect the reality of C2C mode. Others say that they can often be seen on Taobao buy something cheap version, get the objects and their expectations vary widely, even quality problems, etc. To make the return, then it will be very trouble; Taobao now there is no effective workaround. And Taobao basically want from the dig shipping, have to wait a week to get the goods. Therefore, many people choose to go to the credibility of considerable more reliable and more convenient website, even give up online shopping, because the store can personally compare, returns are also a lot of convenience; third, Taobao credit evaluation system is now a lot of storm. Buyers and sellers Taobao evaluation system, largely against unscrupulous sellers can protect the interests of high-quality businesses, but Taobao evaluation failed to solve the problem. Especially for the seller, just a bad review would lead to defects in its credit, and lack of trust of the seller and buyers there have been many complaints of Taobao dissatisfaction posts, spearhead many articles pointing directly to Taobao.

For these problems, the development of the next few years Taobao should pay attention to the following several aspects: first, to find a breakthrough. If you are the same thing C2C and B2C sales, it must be finished C2C. To look for other ways to fill gaps in the market, in order to have a new growth point, while Taobao sellers can sell everything they want, but Taobao can do some guided through their official capacity; second, improve the internal mechanism. Credit evaluation system for solving mean evaluation. Taobao buyers during the country, which the seller is all over the country. There have a large number of outlets in the country, and now a lot of Taobao sellers of goods for long distance delivery are also relying on China Post to complete.
In conclusion, Taobao is a great website, development really fast and make people’s life more easier, even thought Taobao has some defect, but it’s a long journey, and I believe Taobao have a better tomorrow. 

Reference:

Wu Xianfeng, Tang Qian “research of C2Ce-commerce credit based on consumers’ perspective” China Management Informationization [J] 2009

Archer, N., S. Wang, and C. Kang. 2008. “Barriers to the Adoption of Online Supply Chain Solutions in Small and Medium

Enterprises.” Supply Chain Management: An International Journal 13 (1): 73–82.

Gehrt, K., M. Rajan, G. Shainesh, D. Czerwinski, and M. O’Brien. 2012. “Emergence of Online Shopping in India: Shopping

Orientation Segments.” International Journal of Retail & Distribution Management 40 (10): 742–758.
www.nytime.com
“Report of the development of internet of PRC” 2009

www.analysys.com.cn

The biggest IPO in the world

On September 6, 2014, Alibaba Group has finally submit updates to the US Securities and Exchange Commission (SEC) said the group will be listed on the price of $ 60 per American depositary receipts to $ 66, which will hit US the largest-ever IPO market trading by market capitalization.

List documents show that Alibaba Group will raise $ 24.3 billion of funds through the IPO transaction. According to the median price range of computing, its market value will be about $ 155 billion. According to data provider Dialogic statistics show, this will make it the largest IPO transactions calculated, Visa, General Motors, Facebook and a number of large Chinese listed companies to shame.

On September 19, 2014, Alibaba Group’s IPO (initial public offering) price determined as $ 68 a share, which is the previous price range limit, the deal will hit worldwide largest IPO transactions One. Alibaba Group tonight officially listed for trading on the NYSE under the ticker symbol BABA.


On September 20, 2014, Alibaba listed on the New York Stock Exchange, the first day to close at $ 93.89, higher than the issue price of 38.07% to the closing price, the market capitalization of $ 230 billion break. 500,000 yuan from startups to market capitalization of around $ 230 billion, Alibaba took 15 years.

Taobao's B2C mode

Taobao also have B2C mode, which is called Tmall. Unlike traditional sales companies, B2C companies satisfy the shopping needs of different customers through the use of a trading platform for information, capital and logistics. Online shopping has changed the spending habits of consumers. By building their supply chain networks ration- ally, Taobao have introduced different customised service mode. A supply chain network comprises different supply chain resources and the level of supply chain resources integration determines its operation efficiency.

Figure 2.1

Taobao website adopts the system of simple sum of evaluation points to calculate credit index， and there are three levels of evaluations: “high”、“ middle” and “ low” . Each level corresponds to one point,“ high” for one positive point, “ middle ” for zero point, low for one negative point. However, the evaluation must be given in 15 days, or else, the system will acquiesce to “high opinion”. The sum of these points is what we call credit index. The degree of credit is determined by credit index. The personal credit evaluation model is showed in the Figure 2.1

More job offered by Taobao

A few days ago, according to the central news reports, a manager of Ali Group said Ali and Taobao provide employment for 12 million people.

I think this is a very big social achievement, on a total population of 1.3 billion Chinese, Ali provides employment to 12 million people, that’s 8.6 percent of the total population.
Even Taobao have some insufficient, but there have more advantages. The most critical Alibaba Taobao solved the employment problem for many people with disabilities, laid-off workers and college students. Taobao has play a very important role to not only social stability, but also economic circulation. Taobao helped nearly 30,000 direct employments of people with disabilities.


Taobao also promised in the future: "5 years later, Ali Baba want to provide survival for the 10 million small and medium enterprises, development of the platform; providing 100 million people worldwide employment opportunities; one billion people worldwide consumer platform."

Taobao's C2C mode

However, Taobao online shopping is in a virtual environment. If carelessly you may fall into the trap. According to China Internet Network Information Center, nearly half of online shoppers have the unpleasant experience. It becomes a major consumer complaint that "seller shipped the goods that they are fakes, poor quality and impairment ", "bad faith seller, didn’t make the deal or breached the contract without an excuse after making the deal". Meanwhile, more than 70% businesses also have unpleasant experiences, some of which connecting with the buyer's bad faith acts, such as "buyers not for the purpose of shopping, malicious bid or transaction," "buyers to give retaliatory negative feedback, or other malicious evaluation", etc. If the credit problem of online shopping can not be solved properly, it will be the biggest obstacle to restrain the C2C.

As to the Internet c2c transactions, Taobao has been the C2C e-commerce industry’s leader in all these years. In the first quarter of 2009, Taobao's sales accounted for 79% in the gross of the domestic entire c2c market.