Alibaba'S Wings Will Be Facing Up To Ebay.

In the US e-commerce market has always been the dominant position, but with the recent successful IPO of China's e-commerce giant Alibaba, will eBay feel the competitive pressure? There are clear indications that Alibaba once evaded competition with eBay is strong enough to compete with eBay on its site.

Alibaba not only has strong capital strength, but also has a competitive advantage in terms of commodity prices and paction costs.

More importantly, the recent wave of security vulnerabilities has damaged eBay reputation to some extent, which has given Alibaba a chance to grab food from eBay.

It is learned that

In 2010, the total revenue was $1 billion 570 million, and by 2013, this figure had soared to $8 billion.

The growing number of consumers who like online shopping and the increase of per capita consumption have contributed to the rapid growth of Alibaba's revenue.

Not long ago, in the initial public offering, Alibaba successfully raised over $8 billion.

Alibaba has a solid foundation in China, and these funds may be used to expand its overseas market, and eBay will feel the growing influence of Alibaba.

Alibaba's price advantage

Most of the goods sold on Alibaba's electronic business platform come from China, and the price is low, which gives consumers the benefits of saving money.

Since the launch of Alibaba's cross-border AliExpress platform, the number of customers from Russia, Brazil and the United States has been increasing, and the total volume of merchandise trading (GMV) on the platform has increased rapidly.

This shows that the demand for Chinese products in the international market is on the rise.

Alibaba is likely to gain a foothold in these overseas markets and share in the US market, which will undoubtedly cause eBay's concern.

Through the global sale platform, Chinese wholesalers and manufacturers can sell goods directly to foreign terminal consumers.

Alibaba's global express sells a commission of 5% of the order amount, which is lower than the eBay charge, which makes Alibaba more competitive in attracting American sellers.

In 2013, eBay's Commission remained at 8.1%.

EBay security vulnerabilities to shake consumer confidence

In the second quarter of 2014, the security vulnerabilities of eBay website had more or less negative effects on the growth of its bazaar business.

In the first quarter of 2014, eBay's market income increased by 11% compared with the same period last year, but dropped to 9% in the second quarter.

This situation should be attributed to the decline in the purchasing power of eBay consumers, because eBay requires all users to change their passwords, while some users do not comply with the requirements and worry about the safety of eBay.

British Broadcasting Company BBC revealed that eBay had already known its security vulnerabilities, but did not take remedial measures.

If this exposure is true, it will add to the reputation of eBay, which may lead some eBay users to turn their attention to other online shopping platforms, such as Amazon and Alibaba.

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