Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Will Alibaba Group Holding Ltd (BABA) Board the International Flight With eBay Inc (EBAY) and Amazon.com, Inc. (AMZN)?

To many, the question is not that ‘if’ Alibaba Group Holding Ltd (NYSE:BABA) is going to broaden its scope into international territory, but rather ‘when’ is Alibaba going to thump eBay Inc (NASDAQ:EBAY) and Amazon.com, Inc. (NASDAQ:AMZN) under the weight of its Taobao and Tmall platforms? In an interview on CNBC, Mike Butcher, editor at large with TechCrunch, voiced an opinion similar to that of the herd.

Most Valuable Brands In China

“[…] I think a lot of people are particularly tired of eBay, for instance. They are very familiar with how eBay Inc (NASDAQ:EBAY)  and Amazon.com, Inc. (NASDAQ:AMZN) operates. So, in a sense those companies have already done the education piece. Alibaba Group Holding Ltd (NYSE:BABA)  has also this, I always get this this wrong, Taobao marketplace, which it plans to launch in international market, and in the English language […],” said Butcher.

If by getting tired, Butcher meant the interface of eBay and Amazon, I do not agree with him, and if he meant that the price that these retail platforms offered was too high, I am not sure if he knows how Amazon.com, Inc. (NASDAQ:AMZN) operates. Razor thin margins is the name of the game for this particular e-commerce giant, which aims to thrive on humongous volumes and in that regard has spread its tentacles throughout the world.

While Alibaba Group Holding Ltd (NYSE:BABA) is also popular for its bad reputation with the merchants who it forces to lower their prices every now and then, going international is going to be fabout much more than just that.

It would mean foregoing further expansion in the Chinese market in favour of the international space, which as I mentioned earlier is thriving on already small margins offered by the likes of eBay Inc (NASDAQ:EBAY)  and Amazon.com, Inc. (NASDAQ:AMZN). Alibaba Group Holding Ltd (NYSE:BABA) knows the Chinese market place much better, has good relations with the state apparatus, something which is essential to do business in the country, and above all, there is still ample room to expand the e-commerce business there.

Alibaba’s CEO, Jack Ma, would do good if he didn’t get ahead of himself and continued doing what he is best at. Monopolise the Chinese market.


Video Embed Size: 530 X 298 640 X 360

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Loading...