Analysts expect Taobao’s turnover this year over Amazon

Taobao thermal burst

, a senior college student, this year, Yang Fugang will spend most of his time on a Taobao shop selling cosmetics and shampoo. Yang Fugang from a local factory purchase, his shop currently has 14 employees, 2 warehouses and a large amount of cash. Yang Fugang revenue last year reached $75 thousand (about 500 thousand yuan). "I never thought I could be so successful," he said. At first I was just selling yoga mats, now selling all kinds of cosmetics, the profit margins become higher."

Yang Fugang Yiwu Industrial and Commercial College is set off a Taobao hot. School administrators said that 8800 students in 1/4 opened a Taobao shop. Across the country, millions of ordinary people, including college students, shopkeepers and retirees, are using Taobao to sell everything they can find for clothing, cell phones and toys.

analysts said that this was the explosive growth of the market similar to the early eBay, Taobao has become the latest Chinese Internet darling. Although only 6 years of history, Taobao now has a registered user of about 120 million and about 300 million in the sale of goods, sales generated nearly $15 billion last year.

transaction volume will exceed Amazon

Taobao said that the scale of sales through the site has been greater than any Chinese retailers. Analysts predict that this year, Taobao’s online trading volume will double, and more than the expected $19 billion amazon. Citigroup Internet analyst Jason · (Jason Brueschke), said: This is the next important area of China’s Internet is the combination of Amazon and eBay."

Taobao heat is also helpful for economic development. Zhang Kangni, a graduate student in Shanghai, said: "I can’t live without Taobao. First and foremost, Taobao is cheap. I saw a dress in a shop in Shanghai. This is a Hongkong brand, priced at $175. But only $33 on Taobao."

however, some people in the industry questioned whether Taobao can achieve profitability, and become a real large Internet site. Taobao is not a listed company, so there is no disclosure of financial information. Taobao shop is free, Taobao will not get revenue from online transactions. Most of Taobao’s revenue comes from advertising, analysts estimate that Taobao’s current annual advertising revenue to offset operating costs.

in addition, some people think that the development of Taobao contributed to the proliferation of fakes. In this regard, Taobao said it has launched a new project that can effectively combat fake. Taobao executives also said that Taobao can get high profits, but the company is given priority to the establishment of the Internet community. Lu Zhaoxi, President of Taobao, said: our vision for Taobao is to create a consumer paradise, users can shop and enjoy. If a company can continue to improve, profits will naturally follow."

takes a dominant position

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