Nov 11, 2008

Alibaba B2B is bound to decline

By the end of 2007, Alibaba B2B business in the peak moment of speculation in the stock market bubble of the largest, listed on the smart choice, to create a myth of the stock market, the success of the realization of Softbank Japan, Ma was also more scenery, Hangzhou Ma for the Government to set up a statue to become a real icon. But in the last six months, the Alibaba share price plummeting from the top down to 41.80 of the current 9.4, the Ma-house e-mail appeal to Alibaba all ready for the winter. The decision is not in the show Ma is a cool analysis of the options, because from now on site Alibaba decline is inevitable, Why?

Let's analyze Alibaba analysis of how to make money?

On the face of it: pass on good faith, to close membership fee!
In fact: Hu You rely on selling the concept of B2B!



Possibly, this surprise you, and Do not worry, let us continue to analyze you will see!



The core business is marketing!
Therefore, from the commercial in nature, Alibaba Baidu and Google do the same, to help in the marketing business do to make money!



The difference is that they:
Baidu and Google's performance is in the form of: Search Engine
Alibaba is a form of expression: B2B commerce site

However, the enterprise, regardless of what you can at least let me spend the money to bring my clients is the last word!



OK, we continue to return to Alibaba in the business!

Alibaba's business home page is what?

1, faith -
2, China suppliers



The two money-making business, most of the income depends on "China suppliers" Alibaba has nearly 20,000 suppliers in China, how fees and charges? About 80,000 yuan a year, or even a year high of more than 10 million.



Chinese suppliers you better? What cost?

NO, is not worthwhile! Alibaba China in which the supplier to pay members, most of the Super worthwhile. Why?



We have to analyze the flow of Alibaba, Alibaba's take a look at traffic, the number of foreign flows. Alexa through the analysis, Alibaba China is the vast majority of traffic flow, the flow of foreign countries account for only a small fraction of the total flow.



Alibaba how these English traffic come from?

Do not you believe there is Alibaba millions of foreign buyers, the data can be cheating, and these so-called foreign buyers to take a direct landing came Alibaba China suppliers is very small. Or through the vast majority of search engines to find the Alibaba. And then from the Alibaba China to find suppliers, and only a small number. Because no foreigner on the habit of B2B Web site, but have to use Google to find information habits. Alibaba is why the main flow mainly by: SEO and SEM, that is to say, Alibaba's only those foreign flows, Alibaba, or from where, through a search engine search engine optimization and keywords to engage in the ad. Therefore, we can see that Alibaba has been recruiting staff SEO, the SEO team at the same time Alibaba super-strong, often over-SEO.

Alibaba is the model: Alibaba Ggoole in yahoo and where to use the means at no cost or very low prices engage in foreign flows, and then to the ultra-high sale price will be members of Chinese suppliers. And is not paid in accordance with the results, but it was impossible to collect a high annual fee.

It can be said: Alibaba, where the majority of small and medium-sized foreign trade enterprises, it is very uneconomical. Alibaba in particular inside the "Chinese suppliers," I am committed to this, the Chinese supplier to Alibaba's annual fee, out of which one half of the Google, yahoo, Live bid to promote or do SEO, the effect on Alibaba will be far more than in the promotion.


This has been an increasing number of companies aware of. Because google only need to open an account 100 yuan, yahoo in English to open an account need only a few dozen dollars, in Microsoft's Live search engine to open an account only 5 dollars and 50 dollars advertising gave the registration fee.



The search engine promotion, the threshold is so low, at the same time can be in accordance with the specific effect to pay a few cents a click or a few dollars, are brought directly to potential customers. In addition, using Google's free tool that can detect specific keywords in each of the conversion. Can be very real to every penny spent where they are needed most.



Alibaba in previous years, so why can it make money?

Because the majority of China's small and medium enterprises do not understand marketing network, or even most of the big companies do not know how the network marketing!

Ma's Hu You are very successful, so let the vast majority of Chinese enterprises that have business on the Alibaba, and Alibaba then gave money to the Internet. Learn more online marketing knowledge after the discovery that one thing is not so. Therefore, we could always see more and more foreign enterprises to do because the search engine started to give up the promotion of Alibaba, Alibaba in the same time regret to spend money to those wronged.



Why do not B2B abroad, the Chinese can do together?

China's Hu You easily enterprises, Dangdang network marketing companies have more knowledge, it will become more and more clever, you will find that money in Alibaba as a direct cost-effective to spend money in search engines.



For domestic trade business, Alibaba's largest competitor is Baidu, Alibaba, but not as effective Baidu!
For foreign trade business, Alibaba's largest competitor is Google, Alibaba, but not as effective Google!
Therefore, Alibaba decline is inevitable! Place in small and medium enterprises speed the pace of change smart! The sooner the small and medium enterprises wise, the faster the decline of Alibaba!



More than words referring to the main B2B website Alibaba, Alibaba Group, not! Alibaba on the next step in the development trend of the blog and then tomorrow we talk about.

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