Brief introduction

If you talk about ecommerce and online shopping in China then you must have Taobao in mind, which is the largest shopping market place for consumers in China. The website which was founded by Alibaba attracts a wide range of sellers such us individuals, wholesalers and retailers. You might know Ebay where sellers can post new products as well as used/second hand goods – just think of Taobao as providing the same service to mainland Chinese people. Different to ebay the goods price can not only be fixed or rising in an auction but also get negotiated between seller and buyer.

First to name competitors are eBay-China (of course), and Amazon-China. Market reports state Taobao a 65% share of the auction market with growing tendency.

Company: Alibaba Inc.
Private or public: Public
Address: No. 478 Wenshan Road Hangzhou city P.R.C
Contact information: Tel: 0571-26888888 Fax: 0571-88157868
User base: 200 million
Revenue: Break even[1]
Market share: 86%[2]
Users number Growth rate:77%

Relevant news
Alibaba Inc invested 5 billion RMB to[3]
Taobao, China’s largest consumer e-commerce company, today announced that its parent company, Alibaba Group, will invest RMB 5 billion (US$ 732 million) over the next five years to further strengthen the Taobao marketplace ( as the shopping destination of choice for Chinese consumers. Target of the investment was to lead Taobao to the Olymp of shopping platforms and let it provide the best online shopping experience for consumers. The non-plus-ultra is the fact that Taobao will continue offering their service completely free to buyers and individual sellers.


Alibaba, Taobao join hands to boost market share[4]

E-commerce giant encourages more users to offer goods through the online auction site to grow their presence in the domestic marketplace.

David Wei, chief executive,, said the business to business (B2B) website plans to break up the boundaries between and to enable Taobao users to get stocks directly from the Alibaba platform.

Taobao emerges foreign markets[5]

While markets like Japan will get own Taobao derivates (the official website already targets Hongkong, Taiwan, Singapur and Macau people in 2013 as their customers) rumors that Taobao will also open an English version of their ecommerce platform have not proven to come true. Until that happens people from overseas non-chinese speaking countries will have to rely on shopping intermediate services like of the unofficial taobao agent

[1]Taobao currently doesn’t make a profit, since they don’t charge commission to sellers and all income comes from advertising.

[2] According to


[4] According to

[5] Taobao starts Japanese Taobao platform…japanese-e-commerce-market/

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5 Responses to “Taobao”
  1. Taobao FOCUS says:

    with their move to Japan and joint business with Yahoo, Taobao can then prepare their move to the west. that’s just huge

  2. Steven Chow says:

    Yes, Taobao is going abroad, Taobao Japan was just launched, Alipay is actively expanding globally, this will be huge.


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