Conclusion and the success factors of Alibaba from the implementation of e-marketplace.

Alibaba Group Launches Singles' Day (2016 11.11) Global Shopping Festival smashes records at word's largest online shopping event.

Singles’ Day Global Shopping Festival began in 2009 with participation form just 27 merchants as an event for Tmall.com merchants and consumers to raise awareness of the value in online shopping. 7 years later, 11.11 has become a global event with participating merchants in the tens of thousands, buyers in the millions, and total sales in the billions. Alibaba used Singles Day to offer massive discounts to draw consumers to their platform Tao Bao and then Tmall.

In 2016, Alibaba’s Single’s Day, china’s one-day shopping posted sale nets $17.8 billion in 24 hours, a 32 % year-over-year growth rate. According to Alibaba, Chinese consumers are very phone-based when it comes to e-commerce. In this year, 82% of sales came from mobile devices, compare with 68% in 2015. A part from this, U.S companies are a big part of the sale and this year the top five U.S brands were Apple, Nike, New Balance, Playboy and Skechers. Close to 100000 brands, 11000 of them from outside chine, overseas brands accounted for 37% of sales.

Single’s Day takes place primarily in China, now have 20 countries overall participate. Alibaba founder and executive chairman Jack Ma said that his company was the innovative engine of China's new economy and that the growth of Single's Day reflects huge domestic demand among China's 1.3 billion people.

Active buyers are key success factors to Alibaba’s Growth.

Annual Active Buyers

Alibaba’s annual active buyers stood at 434 million at the end of the fiscal 1Q17, reflecting an increase of 18% year-over –year. Hence, the company added 11 million new active buyers when compared with the prior quarter.

Mobile segment monthly active users

Other than that, Alibaba’s Mobile segment monthly active users increased by 17 million quarter-over-quarter to 427 million, while it increased by 39% year-over-year. This reflects increased adoption of mobile among consumers.

Alibaba was successful in driving user growth and engagement by enhancing the user experience, which in turn is boosting the brand marketers spend on its platform. Besides, company is witnessing continued growth and increase in the rate of its active buyers. 

Alipay

Nowadays, there are large number of people shopping online in China. In China, more people are using online payment service to shop online. Alipay is one of the online payment services offered by the Alibaba group. As a result, Alibaba’s answer to China’s fast-growing demand for a convenient online payment service. WePay, WeChat’s online payment service, has been around for slightly longer, but Alipay has made its mark in this increasingly crowded.

One of the alternative to using a credit card is Alipay. Alipay can be linked into a bank account with more secure and trusted. Alipay had provide many type of services which include transfer money to other bank accounts with payment made within two hours, transfer money to other Alipay accounts, pay credit card bills with no fee levied, pay utility bills with no extra fee levied, top up mobile phone with credit, buy bus tickets, check bank balance ,use at online check-out on many websites and also use to check-out on shopping apps Tmall.com and Taobao.com.

Alipay also provide full-services payment platform and added security by acting as an escrow service between buyer and seller. This system encouraged China's wary shoppers to trust e-commerce. Far beyond a PayPal or Credit Card, the Alipay Wallet allows users to top up savings account, pay bills and transfer money to others. Thus Alipay has accessed a largely untapped consumer market.

In 2013, Alipay processed &519 billion and currently handles around 50% of China's e-commerce by contrast, PayPal processes 30% of e-commerce transaction in the U.S. and Amazon isn't expected to reach a 20.6% market share until 2016.

“A” stands for “availability” lead to Alibaba success

One of the reason lead to succeed of the Alibaba because of “availability”. Alibaba makes e-commerce very accessible to consumer in china, with two flagship websites which is Taobao for consumer-to consumer and later Tmall for business-to consumer. Furthermore, many private store owners at Taobao offer their merchandise part-time or at least they started as part-time before their businesses took off. The reason for this is that sellers don't need to pay Taobao to set up an Internet store there.

Beside that, store owners have to pay the website for advertisements if they want to stand out among the millions of Taobao sellers. Therefore, Taobao successful to attracts many people willing to give it a try and sell a vast array of product at Taobao. The fact that there are millions of people selling a variety of products at Taobao increases the "availability" of merchandise and generates traffic to the website. This large traffic then allowed Alibaba to successfully launch Tmall for businesses to set up stores at the Alibaba website.