Navigating the bamboo scaffolding of China's rapid-rising tower of technology by Steven Millward,China
Similarly to eBay, there's an emphasis on shopkeepers being rated by buyers to display who can, and can't, be trusted. The same, too, for buyers. In the screenshot to the right, you can see one shopkeeper's stats, displayed on its shop home screen. After every transaction, both parties can optionally rate each other; but it has become polite to give a good rating where one is due. The more "crowns" and "hearts", the better
Text reviews can also be posted under every product. Interestingly, running a Taobao shop has become a national pastime, with even office workers on a good salary running shops, chatting online with potential customers--perhaps even during office hours--and sorting out the mailing of items in the evenings and on weekends. University students, too, provided they have a laptop, have taken to being sellers to give themselves a bit of an income during the semester. Setting up a Taobao shop requires no fees be paid to the site. So it's just a matter of sourcing for some products from a wholesaler--an easy thing to find and do in China, which is the "world's factory" after all--for a fairly small outlay. And then you'll hopefully be able to sell the goods at a competitive price which slightly undercuts the bricks-and-mortar stores with their huge overheads.
Navigating the bamboo scaffolding of China's rapid-rising tower of technology by Steven Millward, China
The 10 main tabs across the Taobao front page reveal the core sections of the site, which include "mall", "global", "second-hand", and "plane tickets". Much of what is sold, however, are brand-new products from its legion of hobbyist shopkeepers.
The search box is prominent just above the tabs and allows you to search across the site or within certain categories. Upon searching for anything, you get a list with thumbnails and descriptions, from a variety of sellers across the country. It doesn't really matter where the seller is, as regular- and express-mail options cover the country.
Taobao's payment method is Alipay, created by its parent company Alibaba, the business-to-business e-commerce site which also runs Yahoo's China operations. Alipay has been vital to their victory over eBay and its unfamiliar Paypal. For regular users, Alipay (Chinese name: 支付宝--Zhīfùbǎo) is the payment method and safety intermediary. It accepts payment on a wide variety of bank-issued debit cards and Visa.
The buyer first pays money--using an Internet shopping-enabled bank card--to Alipay, which then holds the money until the buyer has received the goods. If satisfied with the items, the buyer logs back into Taobao, and with a few clicks, can allow Alipay to pass on the payment to the seller. This eliminates the possibility of card fraud and items that don't get sent. Though for the shopkeepers, there's still the possibility of some wantonly dishonest customers damaging the goods themselves and sending them back.
Handsets to come with applications enabling consumers to shop, shopkeepers to manage online stores.
Chinese online retailer Taobao.com will release three customized mobile phones early next year, in partnership with Lenovo Group Ltd., China Telecom Corp. and TCL Corp., a person with knowledge of the matter said Monday.
The phones will come with applications allowing customers to shop and pay for goods, and shopkeepers to manage their online stores, said the person, who declined to be named.
Taobao, based in Hangzhou, Zhejiang province, may be hoping to emulate the success of eBay Inc. in the U.S. in moving online shopping to mobile platforms. Following the launch of a popular application for Apple Inc.'s iPhone, eBay said last month customers will buy more than $500 million in merchandise on its site with mobile phones this year.
Computer-maker Lenovo Group confirmed its partnership with Taobao, saying in a statement the Taobao-branded phone will come equipped with software allowing customers to shop on the e-commerce site.
The Taobao phone released with China Telecom will run on the carrier's third-generation mobile network, said the person with knowledge of the matter.
Taobao has also just released a downloadable application for other mobile devices, including the iPhone and devices that run on Microsoft Corp.'s Windows Mobile.
Taobao is China's dominant e-commerce site, where individuals can buy goods from one another and directly from major retailers. Taobao parent company Alibaba Group is also the parent company of Hong Kong-listed business platform Alibaba.com Ltd.
In the first half of the year, Taobao handled CNY80.9 billion ($11.8 billion) worth of transactions, nearly double the year-earlier figure.
Last month, Lenovo said it plans to buy back its mobile phone unit for $200 million in cash and shares, signaling its intent to get more involved in China's burgeoning mobile Internet market. The company had sold off the unit in 2008 for $100 million to focus on its personal-computer business.
China Telecom spokesman Jacky Yung said he wasn't aware of any collaboration with Taobao. TCL wasn't immediately available for comment.
Company invests RMB10 million in top 30 applications
BEIJING, January 15, 2010 -- Taobao, the largest online shopping destination in China, has launched the Taobao App Store and will invest RMB10 million (US$1.46 million[1]) to foster promising independent software developers via the Taobao Open Platform (TOP) fund every year. The Taobao App Store (http://app.taobao.com) will offer solutions created by independent developers through TOP for Taobao merchants and consumers. The first batch of applications available in the store is the top 30 applications identified through the “Win at Taobao” competition held by TOP.
“With an increasing number of third-party developers registering and the emergence of exceptional software on TOP, the Taobao App Store will serve as an incubator of innovative technology for Taobao users,” says Wang Wenbin, vice president of Taobao Open Platform. “The Taobao App Store is a convenient channel for developers, investors and customers to interact directly and it will ultimately allow the market to evaluate the independent developers’ creations.”
The Taobao App Store will offer products across a range of categories to meet the needs of all Taobao users, including tools for sellers and buyers; extensions for Taobao community sites; tools for product recommendation; and mobile phone applications. For Taobao sellers, the applications will aim to improve their business management and back-end operation functionality while buyers will be offered tools to improve their shopping experience. Software developers will be able to generate revenue from their applications through subscription fees, commissions or advertising, depending on the type of service offered and popularity of the product.
Established in October 2009, the TOP fund will make an annual investment of RMB10 million to foster and encourage innovation in online application development among independent developers. The TOP fund aims to incentivize independent developers to create original and novel tools for Taobao users and support their growth on TOP. The TOP fund is jointly financed by Taobao, Alibaba Group and outside investors. Several external parties including government entities in China and around the world, funds and investment companies have expressed interest in becoming potential investors.
The top three winners of the “Win at Taobao” competition, launched in September 2009, will receive investments from the TOP fund totaling RMB5 million (US$732,000). Another RMB5 million of investments will be shared among the rest of the top 30 contestants. As of December 31, 2009, more than 25,000 independent software developers have registered on TOP and more than 4,000 applications have been created using the application programming interface (API) provided on TOP.
"We help you buy all kinds of products offered at incredibly low price from China's biggest domestic online shopping website. We are your Taobao agent who can find, purchase, check and deliver the items from Taobao.com. Our offer includes sourcing, buying and international shipping from China."