All data from public. Just for acedmic propose

1. Operation Procedure –
Taobao in China
单击此处添加标题文字
• Company Background
• Shop Registration Procedure
单击添加署名或公司信息
• Payment
• Delivery Procedure
• Marketing in Taobao + Tmall
Prepared by Charlotte Lee
2013 Oct

2. Company background
阿里巴巴B2B
370 M
members
80M
Product qty
3650K
Selling qty
195M
Daily Transaction ￥
Traffic
80%
Market share
60M

3. Customer Characteristic
Customer Characteristic
•
6 main province along coast including Beijing, Jiangsu, Shanghai, Zhejiang,
Fujian, Guangzhou
•
Taobao buyer average monthly salary ￥7030
北京
江苏
上海
浙江
福建
广州
Source：CNNIC、

4. Vendor Application Procedure
7 days
Seller has Bank account
in China
Apply account in
Alipay.com
Personal account
application
Taobao verify ID card
Product photo &
details (at least
10)
Chinese ID Card copy
need to provide
Taobao verify bank
account with ID
Promotion, Event, A
ds
Alipay link up with
Seller Bank account
Alipay verification
Sign up agreement
Need to pass Exam
AUTHORIZATION
Logic, customer
service, invoice…et
c.
SHOP OPEN
Alipay Account OPEN
SHOP PLATFORM
SET UP
Application is more simple than TMALL

5. Payment
Payment is same as TMALL

6. Delivery Optimization – Taobao logistic
Traditional C2C logistic
Receive order, SCM, replenishment, package
Taobao logistic
Receive order
SCM
Goods Touch point
Courier pick-up, delivery
Goods Touch point
Package,
Buyer receive goods, Seller collect $
Goods Touch point
Delivery
Buyer receive
goods
Goods Touch point
Seller collect
$$

7. Delivery Optimization – Taobao logistic
1、Service Charge
• Delivery Charge include warehouse, product pickup, security, storage insurance
• Courier Charge varies destination and courier selection
• Package material
2、Payment : Early Month
3、Analysis
Pros
Cons
Delivery efficiency
Trust
Lower business cost
Goods ownership
Economic of scales
Industrial standard

8. Free of Charge Marketing in Taobao
Free-Of-Charge Traffic
SEO, Community, Fan
Click apply link, my favorite function
VIP buyer club, VIP shop list
Coupon, Trial sample forum,
Tao $$ scheme
Official events & promotion activities

9. Free of Charge Marketing in Taobao

10. Paid Marketing in Taobao
Paid Service
“Hot” sell shop
Ads, banner
CRM system
Gift after reach certain
sales amount
Discount “Time”
Official e-magazine ads

11. THANK YOU
单击此处添加标题文字
•This presentation focus on how Taobao operate
in China.
单击添加署名或公司信息
• Other B2B and B2C platform operation system
will be summarizing and compare in last section
• New brand + e-commerce strategy in China
Prepared by Charlotte Lee
2013 Oct