Jack Ma on why Alibaba's nothing like Amazon: 'We believe every company can be an Amazon'
Eugene Kim
Chinese e-commerce giant Alibaba often gets mentioned as Amazon's main competitor, but Alibaba founder and chairman Jack Ma doesn't believe it's a fair comparison.
He says the two companies run on completely different models, and if anything, Alibaba's role is to help businesses grow into something similar to Amazon.
"[Amazon] buys and then sells [products]," Ma told Bloomberg's Emily Chang in an interview Wednesday. "We're a platform...We think if Amazon is a great apple, we’re an apple tree."
Ma pointed out that Alibaba has over 10 million businesses of all sizes selling on its site, and his company helps them by providing a marketplace, in addition to things like computing power, logistics, and payment systems.
"We believe every company can be an Amazon," he continued. "We want to enable every company to be an e-commerce [business]. So I don't think Amazon and us will compete."
In other words, Amazon is more akin to a massive retailer that sells stuff out of its own inventory, while Alibaba doesn't sell anything directly, simply serving as a middleman to connect buyers and sellers.
Amazon does have its own third party marketplace, but it's slightly different in the way it makes money too. Amazon takes a small commission for every item sold, but Alibaba's Taobao marketplace doesn't charge anything for the transactions, instead making money through advertising.
http://www.businessinsider.com/jack-ma-explains-why-alibaba-is-not-like-amazon-2015-11?IR=T
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Amazon vs. eBay vs. Alibaba
Business Approaches:
Amazon vs. eBay vs. Alibaba has different business models. Amazon is entirely different from the rest of the companies. On the other hand, Alibaba and eBay have almost same business approaches. For the reason that, Amazon sells products directly to its customers. Apart from direct retailing, Amazon also allows retailers to sell uncommon products through Amazon, it does so the revenue is not diluted.
eBay and Alibaba are more alike. Both companies act as a traders between sellers and purchasers. eBay is preferred by users because they allow to personalize listings. Through its services people can sell their products with the help of eBay workers. Alibaba deals with 12 million orders because of its best strategies.
http://www.theworldbeast.com/amazon-vs-ebay-vs-alibaba.html
http://www.investopedia.com/article...tween-amazon-and-alibabas-business-models.asp
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