Federico Valdivia

Alibaba vs Amazon

amazon  alibabas

Is it Alibaba the China’s Amazon?

Alibaba is the largest online store from China and it is increasing rapidly, compared to other online stores. The company’s has online shopping sites that work as marketplaces for merchants to sell and buy products.

Comparing the latest earnings from the company helps to see the differences between the Chinese giant with Amazon, and E-bay. The company actually has some similarities with Google.

The company’s revenue from the second quarter increased to $1.74 billions from $1.08 billion from a year earlier, with an operating profit of more than $ 856 millions, while Amazon revenue increased to  $15.7 billions from 12.8 billions a year earlier, with an operating profit of $79 million. Alibaba’s operating profit margin stood at 49%, while Amazon’s was just 0.5%. Alibaba’s revenue its way smaller than the competitor Amazon and this is because Alibaba does not operates its own online stores like Amazon, the company instead has websites were merchants can sell and buy their products.

The business model is also different from Amazon and E-bay because Taobao Alibaba’s main division does not charges merchants a tariff; instead, the company’s makes money through advertising on their pages like google ads. Additionally, many chinese people uses Taobao as search engine.

For more information follow the link bellow

http://blogs.wsj.com/digits/2013/10/16/alibaba-isnt-the-amazon-of-china/

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