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The business model for Taobao aims to cut business cost, resulting in the win-win situation between manufacturers and consumers. Consumers can often get a great bargain or find a hard-to-find object. At present, the major consumer group of Taobao is aged between 18 and 35. They pursue fashion and have relatively higher consuming capability.

When it comes to the most popular on-line commodities, people tend to purchase inexpensive products, say, clothes, books, IT products and so on. However, no matter how popular it becomes, on-line shopping is not always satisfactory. The development of e-commerce also needs improvement. Taobao is no exception. One of the great problems of shopping on line is the delay and uncertainness of delivery time. In reality, however, not many sellers can deliver goods within 24 hours. Therefore, in their efforts to publicize the advantages of shopping on line, on-line sellers should take timeliness into consideration. In addition, delivery option is another key issue of concern. Now regular mail is by no means the top choice for shoppers in terms of timeliness. So, sellers should choose reliable express companies, which is also an effective way to expand on-line shopping market.

All in all, like other e-commerce websites, it’s better to listen to consumers than just developing registered users. Providing consumers with tangible convenience can better realize its business value.

2 Comments: Add Comment
Tony Zhu says at 6/18/2008 7:29 PM
wanna know more...
the win-win mode is worth learning.
Denny says at 6/17/2008 11:49 PM
I cannot agree with you more!
and I think credit is also another factor.
many consumers are not willing to buy things on the internet, because they are afraid of being cheated.
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