Alibaba speech at online retailer expo 27 sep 2011


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Grow your business with SMART SOURCING was the topic of the Speech given at the Online Retailers Expo by Daphne Lee, International Business Development & Management at Alibaba.

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Alibaba speech at online retailer expo 27 sep 2011

  1. 1. @ Online Retailer ExpoGrow your business withSMART SOURCING Daphne Lee International Business Development & Marketing September 27, 2011
  2. 2. Alibaba Group Overview • Founded in 1999 by Jack Ma, CEO of Alibaba Group • Alibaba group now has 20,000+ employees and 60 offices in China, Hong Kong, Taiwan, Korea, USA, UK and India. 1999 2011 Jack’s apartment View from the sky bridge at corporate Hangzhou, China campus in Hangzhou, China
  3. 3. Alibaba Group Overview A decade later, Alibaba Group has become the largest e-commerce company in China and a family of Internet-based businesses (HK Limited stock code: 1688) One of Chinas Chinas largest Chinas leading leading C2C and B2C third-party Internet portals retail website. online payment In year 2010, platform, 550 Taobao has 370 million users. million users, 4.7 Up to 5.5 M million sellers. transactions 2010 GMV near amounting to 400 billion over RMB 1.4World Largest B2B marketplaces RMB. (app. 60 billion daily. billion USD) 3
  4. 4. - B2B Marketplaces is a flagship company of Alibaba Group • The world’s largest online B2B marketplace • Search and compare with over 9.2 million storefronts worldwide • Easier than searching Google – targeted niche search engine • Free membership 4
  5. 5. B2B eCommerce | International MarketplaceKey features on product listing page: 1. Search Engine • Keyword Search • Product Category 2. Supplier/Product Information • Company Products • Company Profile • Company Video 3. Value-Added Services (VAS) • Keyword Search • Premium Placement • Virtual Showroom 4. Real-time Communication & Inquiry • Trade Manager • Email
  6. 6. Australia member base• Australia is one of the largest • AU membership base seenmarkets for, steady growth over past 4 yearsaccounting for 3% of total21.6M international registered Reg. Members YoYusers Dec. 2006 60,700 Dec. 2007 113,700 87% Dec. 2008 183,900 62% Dec. 2009 272,700 48% Dec. 2010 498,000 82% Jun. 2011 627,676 79% • Vast majority of registered members are buyers. 97% have potential buying demand.
  7. 7. To Grow Your Business withSmart Sourcing 7
  8. 8. Tips for Smart Online Sourcing  Research Effectively  Verify Suppliers  Safe Payment  Quality Control 8
  9. 9. Platform: Largest platform of suppliers Plethora of products to choose from Greater convenience in sourcingQ: What is the best way to shortlist your suppliers efficiently and effectively? 9
  10. 10. Search & FilterSearch: Product, Country or Category – Try added specifications and using ―quotation marks‖Refine: Categories, Materials, Supplier location, etc. – Filters ADJUST to your search item 10
  11. 11. Search Results Products: Suppliers: Tools: -Image -Name & Type -Gold Supplier -Description -Location -Trade Manager -Min. Order -Supplier Profile -Contact Supplier 11
  12. 12. Other Buying Tools(1) Submit RFQ forcustomized matchingservice from (2) Post a Buying Lead to let the right suppliers find you (3) Subscribe to Trade Alerts to get updates on the latest products 12
  13. 13. VERIFY Suppliers Verify supplier quality: Best price is not the only thing to consider! Basic verification steps: ―Due diligence online ――About Us‖ section, E-mail, Phone, Zip Code ―Check company capability through online profile, e.g. certificate, ODM/OEM experience ―Beware of companies with incomplete details or who use only mobile phone to contact you 13
  14. 14. Verification ToolsGold Suppliers: Paying membersA&V and Onsite Check : Verify basic supplier details, newGold Suppliers must be checked byFactory Audit: Certified by third party partner To Refine Online Tools 14
  15. 15. Factory Audit ReportsThird party audits supplier to verify information and takepictures onsiteBuyers can use reports to assess supplier credentials andcapabilities Request ReportFind reports from the supplier’s TrustPass profile pageClick ―View the Report Summary‖ to request a copy of thereport for free 15
  16. 16. Other Verification TipsKeep initial contact simple: —Get message across with as little information as possible ―Don’t ask for RFQ in during first contact in ChinaAdditional methods of verification: ―Local Embassy & Chamber of Commerce ―Foreign trade forums - Safe Trading Forums ―Bank verification ―Credit report 16
  17. 17. PAYMENT Security & SafetyPopular Payment Methods:Telegraphic Transfer: Buyers/seller with a trustworthyrelationship. Risk 100% with buyer.Letter of Credit: Buyer’s bank guarantees they’ll pay forgoods, provided supplier agrees to set of clauses.Document against Payment : Exporter ships goods and givesdocument to bank to forward to buyer’s bank.Open Account: Exporter receives payment after buyer hasreceived and inspected goods. Risk is 100% with seller.Escrow: Legal arrangement where money is paid to a thirdparty and held in trust until goods are delivered. EVENLY shared risk 17
  18. 18. Payment Safety & Escrow: Buyer pays Escrow,where money is held until buyer receives goods andreleases payment to supplierKey features: Secure payment online Dispute resolution service from Information protection by VeriSign 18
  19. 19. Using Escrow To Refine Sort by suppliersoffering Escrow Order with Escrow To Order 19
  20. 20. Quality ControlTake measures to avoid sub-standard products: Quality controlchecks help provide a smooth supply process and reduces the numberof customer complaints Travel to potential trade partner’s place of business: Inspect thefactory, production, products, etc. Hire Inspection Services: Efficient way to do quality control for theduring production and shipment process ― Inspection Service: New platform for inspection service providers and buyers  Initial Production: 10% of goods produced  During Production: 25-40% of goods produced  Final Random Check: 80% packed ready for dispatch  Container Loading: Goods being loaded for shipping  Other Services: Specified by inspectors 20
  21. 21. Inspection PlatformBenefits to buyers:Reliable pre-validated inspectorsWide range of inspectorsEase and convenienceSecure paymentGuaranteed quality 21
  22. 22. Using Inspection PlatformTo use: Select location of inspector and industry for productResults: Company details, Price, Inspection Type, ServicedLocation and Languages providedOnline tools: Trade Manager, Contact Inspector To Use Online Tools 22
  23. 23. Other QC MeasuresSelection process  ISO Accreditation: Indicator of commitment to quality  Request a sample: Assures quality before you commit to the deal 100 percent ―Be sure standard of quality is clearly stated in your purchase contractShipment process:  Freight Forwarder: Helps get transport information (shipping rates/routes), books cargo space, and prepares importing documents. —AU Gov. Website: Resource, freight-forwarder/default.aspx 23
  25. 25. AU Big Buyers on Australia 25
  26. 26. Australia Buyers on Founded in 2004 makes shopping easy for the millions of people living in Australia Dedicated team of buyers, majority of sourcing done on Roughly 30-80% less than recommended retail prices on all of our products Wide range of product choices Guaranteed low prices 26
  27. 27. Buyer Testimonial: Andrew Morello “The major benefit of is its simplicity. There are a lot of supplier websites out there now, but none as detailed or as simple to use as”Andrew Morello, Winner of The Apprentice 2009 (Australia) “If there’s something you need, go to and source the best possible products at the best possible price.” 27 27
  28. 28. Welcome to visit 28 28
  29. 29. Australia Fans Page 29
  30. 30. Thank You &Join us free today !