Michelle Xujing: Good Faith Transaction Is The Core Value of E-business Alibaba CEO Ma yun criticized staff value had big problems when the scam case was revealed. When probing underlying reasons, we could find that it was high attached to the outdated commercial mode of Alibaba. Since world financial crisis in 2008, fraud cases have never been interrupted. Ma Yun only investigated on this case with great efforts; the move was welcomed by suppliers. Fraud cases may not end; related responsible staff has breached the basic moral principles. In fact, the scam was not because staff value has problems, it was because the commercial mode was outdated. As the first generation of B2B platform, Alibaba main income came from membership fees. China OEM manufacturers were willing to join due to the gold brand supply certificate, which could obtain more overseas orders from retailers. However, the western market has shrunk due to world financial crisis. China suppliers could get less and less orders and the profit shrank more and more. For the same reason, Alibaba can not increase the profit in foreign trade business, membership renewed contract also went downward. The internal sales staff deliberately relaxed the verification since they wanted to get more commission fees. So many scam companies could cheat overseas wholesalers with the title of gold supplier certificate granted by Alibaba. You may know by a handful the wholes sack, what is the problem of Alibaba commercial mode? First, Alibaba worked as an e-yellow page since it took the basis on membership charges. Three shortages could be seen in promotion effect: First, promotional effect can not be digitalized, second, it could only display sellers’ information, third, Alibaba became more famous, and then more and more sellers could join in. Excessive sellers’ information may make the transaction more difficult. Compared with Alibaba, IBUonline scrapped membership fees so that both sides could view inquiries and business opportunities information as well as releasing information free of charge. IBUonline made profits through value added services, such as global information distribution, import and export data service, foreign trade entrustment service etc. Flexible foreign trade tools could meet members’ demand so the members could choose according to their needs and they paid based on the demand or effect. The service mode lowered the threshold for manufacturing enterprises to enter e-business. IBUonline CEO Michelle Xujing stated good faith transaction was the core of the value in e-business. So IBUonline made great efforts on developing foreign trade intelligent tools----“Easy Order”. Easy Order could showcase suppliers’ capacity. On one hand, it could strengthen the confidence of buyers and on the other hand, it could match buyers and seller’s information accurately. Order management tools could be used by both parties, so they could interact with each other to check if the orders have been put into operation or not , the goods have been put into package or not, the goods have been delivered or not, to avoid international business risks. Second, the foreign trade businesses have six procedures, seeking orders, following up orders, manufacturing, customs clearance, delivering and duty drawback. In the past, Alibaba only took effect in seeking orders or seeking business partners. After buying ydt35, Alibaba could also break through in service chains, such as customs clearance, logistics, and duty drawback. But it was only applied in small amount of transactions. The future development was not clear. Compared with Alibaba, IBUonline aimed to provide one-stop foreign trade business for SMEs and IBUonline has cooperated with banks and logistics services providers so the suppliers could complete seeking orders, following up orders, customs clearance, logistics and duty drawback etc. IBUonline services covered the whole procedure in foreign trade business, which was superior to Alibaba in terms of breadth and depth of the services.
Posted on: Thu, 06 Jun 2013 06:40:31 +0000
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