How Alibaba and Amazon are different?

Alibaba is one of the largest businesses in the world and make its name in the list of one of the largest companies currently. Alibaba has had great success over the past years which have bolstered its domestic and international status and position. One of its bitter rivals is Amazon. Moreover, Alibaba is now the world’s largest B2B service provider company. However, Alibaba says it is nothing like AMZN. The company believes that the Chinese market, United States market, and other international markets all work in their own different ways. 

The company says that “Alibaba is discovering that the Chinese and U.S. E-Commerce marketplace present their own set of challenges, particularly when looking at the urban versus rural market audiences, but the Chinese E-commerce giant believes tapping into a niche market, like farmers, can help boost its online users and sales growth.” The CEO of the company, Jonathan Lu explained that the company wants to make to most of its growing business and growing online market place. He wanted to take the company, products, and its sellers to a whole new level. 

Jonathan Lu further added “Alibaba is using its growing online marketplace to encourage those in rural areas, like farmers, to sell online. In China, 34 percent of people in urban areas use E-commerce compared to only 9 percent in rural areas.” Despite of such a big ratio difference between the utilization of e-commerce between urban and rural areas, the CEO and the company sees this as a big opportunity to bring farmers and other rural sellers online to sell their products. The company believes that this will allow farmers to have a space in the global online marketplace to sell their products, making it less important for Alibaba to target shoppers in the urban market.

In the past few months, the goods and products which have been sold on the company’s marketplace has exceeded over $90 billion. Alibaba has eight major businesses — Taobao Marketplace, Tmall, Juhuasuan, Alitrip, AliExpress, Alibaba, 1688 and Alibaba Cloud Computing — but most of its revenue comes from online Chinese marketplaces, Taobao and Tmall. Alibaba reported that 8.5 billion sellers use Taobao every year.