The impacts of TAOBAO(business to customer) on E-business in China.

Once a decision is made to develop a business, whom the customer will be is the next decision to be made. Whom will the company target as a customer? Will it be a business? Or will it be a consumer? Business-to-business (B2B) marketing has differences from business-to-consumer (B2C) marketing practices. This paper will outline these differences between the two types of e-commerce business transactions.

Many market opportunities have helped the Alibaba Group thrive in the recent years. The location is the first advantage because China has over 560 million users of internet spending over 20 hours online a week. China is the biggest internet market globally (Bhasin, 2016). This is twice the size of internet users in United States of America. China is gradually shifting the traditional retailing in favor of latest trend of e-tailing. The good relationship with the government of China has enabled it to carry its operations so well in the market. For example, Alibaba Group was among the companies selected by the government of China to join the Internet banking. This is a huge opportunity especially where banks are state owned (Shiying & Avery, 2009). The cost cutting associated with the huge volume of sales. For example, Tmall and Taobao accounted for over 50 percent of all the Chinese delivered parcels. Tmall’s and Taobao’s combined transaction volume in 2012 was about one trillion yuan. This figure was more than eBay and Amazon transaction volumes combined.

In 1991, the internet became available for commercial use, which introduced the possibility for what we now know as electronic commerce, or e-commerce. By 2000, “a great number of business companies in the United States and Western Europe represented their services in the World Wide Web” and it was at this time that the e-commerce that we utilize in today’s business world took shape (e-commerce Land, n.d.). “People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services” (e-commerce Land, n.d.). Through continued growth of the internet, brick and mortar stores came to realize that electronic representation would be an

Therefore the installation, maintenance and customization of the e-commerce services should be based on various shopping carts which includes; Drag and drop designs, password protected web pages and individual pages for new products and the bestselling products, to name a few. These shopping carts offer various features that enable online product management services which should be crucial to the organization. In addition, they offer internet payment options such as, merchant accounts that should be helpful to the organization (secure trading, 2014). Also, they can support processing of credit cards in real-time. They can support payment by checks or cash on delivery. In addition, checks by email and manual getaways where; orders and information of payment are collected and processed offline.

E-Commerce is with no trouble the buying and selling of various merchandise and services over the web. Any individual with access to the web can have interaction with e-commerce buying and selling. E-commerce has two varieties of buying and selling and that is trade-to-patron (B2C) and industry-to-industry (B2B).

In the last 2 decades, the online shopping infrastructure has emerged with the speedy growth of electronic commerce. E-businesses all over the world have become a widespread medium for buyer-seller transactions as a means that compliments and supplements the experiences of a physical store. Few of the key success factors are:

Electronic commerce or e-commerce is the buying and selling of products and services via the internet. Nowadays the thought of living without e-commerce seems complicated, unfathomable and inconvenience for many. Internet and the virtual companies are changing traditional economic way and making competition ever fiercer than it has ever been in the past.

The website is providing a lot of opportunities for small and medium sized companies to meet more potential customers. Lee (2014) mentioned Chinese customers are price sensitive. Sellers and buyers make an agreement on the most ideal price to both of them so they can communicate directly in terms of that buyers can make more profit and customers can buy product in lower price. Therefore, suppliers and customers have more chance to match up. Lee also said “E-commerce in China is a very dynamic industry where companies must react quickly to accommodate their shoppers needs.” Company need to know how customers are thinking, exchanged information between customers and business is also important. Alibaba developed a variety of business proactively, not just focus on B2B commerce but also C2C on taobao.com such that people can sell their products directly to the customers in relatively small-scale

China has the world’s largest online populations with 130 million residential broadband accounts. E-tailing produced more than $180 billion in sales in 2012. The e-tailing industry in China has registered 120% compound growth rate since 2003. At the heart of this e-tailing revolution lies the Alibaba group, which is slated to go public in the United States as early as next month.

By providing great services, consumers will be satisfied and existing customer will stay, followed by the increasing of loyalty customers. Enhancement of its technology infrastructure is essential to retain its customers (Butters 2014). A better display of website can increase the transparent, so that buyers enjoy buying from Alibaba.com (MacDonald 2014). The web security is designed to protect information of customer and company, payment details from leakage, intensify its protection against fraud issue to develop better trust from the customers.

Hecker defines e-business as any process that a business organisation conducts over a computer-mediated network. It includes buying and selling, as well as a wide range of customer-, production- and management focused processes carried out by for-profit, government or non-profit entities [1]. Due to Zappos being internet based they already have an advantage over some competitors that don’t have a website, or have a website but not a delivery service, just a website to browse. Zappos are open 24/7 due to them being an online delivery service. Zappos have a competitive edge due to them using e-commerce, they are able to sell

As described by Reynolds, E-commerce takes several forms, including business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), and e-government (e-gov). It’s any type of organization, or that includes the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge (Reynolds, 2016). While there are multiple factors of e-commerce operation for retail interacting with its customers the three primary benefits are effective customer service, convenience, easy and timely efficient orders.

The Online business can be classified into three categories; selling goods; providing services and distributing content. The category of selling goods is the evolution of the mail order business. Category “consists of ticket purchases and hotel reservation while category 3 involves the distribution of video and music content. Selling clothing online is a category 1 business. (Kobayashi, M. 2007).Clothing industry became the second largest online product category. The internet’s impact on the fashion industry is revolutionary; the internet has changed the fashion business

Business-to-consumer e-commerce, or commerce between companies and consumers,involves customers gathering information; purchasing physical goods (i.e., tangibles such asbooks or consumer products) or information goods (or goods of electronic material ordigitized content, such as software, or e-books); and, for information goods, receivingproducts over an electronic network.It is the second largest and the earliest form of e-commerce. Its origins can be traced toonline retailing (or e-tailing). Thus, the more common B2C business models are the onlineretailing companies such as flipkart.com Amazon.com, snapdeal.com etc

E-Business is a term often usedin conjunction withe-commerce, but includes services in addition to the sale of goods.E-business or Electronic business is the extensive use of computers,communication technology, networking technology and computerized data to perform business processes. In other words, E-business is any system of suppliers, distributors, or customers that use the Internet as the basis for their operations. It can range from using e-mail to communicate with customers and/or conduct business to a web page promoting acompany, from a full e-commerce retail site to the integration of procedures and processesusing Internet based technology.The transactional component of E-business is e-commerce. E-commerce can bedefined as the buying and selling of information, products and services via the Internet. Thereare generally two types of e-commerce 1) B2C (Business to Consumer) in which businessessell to consumers or 2) B2B (Business to Business) in which businesses sell their products or services to other