Taobao

Last updated
Taobao
Taobao logo (2021).svg
Type of site
 Consumer-to-consumer and E-commerce
Available in Chinese
Owner Alibaba Group
URL www.taobao.com OOjs UI icon edit-ltr-progressive.svg
CommercialYes
LaunchedMay 2003 (2003-05)
Current statusActive
Written in PHP [1]
Taobao
Taobao (Chinese characters).svg
"Taobao" in Simplified (top) and Traditional (bottom) Chinese characters

A good way to investigate a Taobao shop is by clicking the shop's rating icon. For Tmall.com shops, people click the stars to view their ratings. Taobao users usually read feedback and compare items from multiple shops. [16] Feedback can be genuine or artificial, requiring users to make their own judgments. Feedback can be posted by competitors.

Every trade deal includes a section of customer feedback. Shop owners often put effort to maximize positive comments. Negotiations may happen between sellers and consumers over their satisfaction ratings.

Taobao uses search tools and other functions to understand user demands. Customers are asked to complete surveys that ask:

Other features

Taobao Marketplace offers various features and services to create a better user experience for online shoppers and retailers. [17] In January 2010, it launched the Taobao app, created by independent developers through the Taobao Open Platform, to be downloaded by consumers in Taobao App Store. [18]

In March 2010, it introduced the Taobao Data Cube platform, which gives small businesses access to its aggregate consumer transactions data for insight into industry trends. [19]

In June 2010, it partnered with Wasu Media Internet Limited to launch Taohua, a digital entertainment products platform, and interactive digital television shopping, that are operated by a joint-venture formed by the two companies. [20]

Weitao

Weitao is a private shopping assistant/blog for Taobao/Tmall customers. [21] It is a micro-blogging feature for brands and merchants on its e-commerce sites Taobao and Tmall. [22]

Taobao General Code

Taobao has developed an extensive set of rules and a constitution which it terms the "General Code". [23] : 201  The General Code consists of 6 chapters and 31 provisions proscribing the basic access requirements and obligations of users, seller obligations, and the platform's conflict resolution mechanism. [23] : 201 

When Taobao proposes a rule change, all buyers and sellers with a sufficiently high Zhima credit score can vote and express their opinions on the rule. [7] : 68  Taobao also invites professionals and academics with relevant expertise to public evaluate proposed rule changes in order to inform voters. [7] : 68 

Public jury

Alibaba established its public jury (pan.taobao.com) dispute resolution system in 2012. [7] : 66  By 2020, it was a widely-used dispute resolution tool on the main Taobao platform and was also frequently used on Xianyu (Taobao's used goods platform). [7] : 66 

Through the public jury process, Taobao randomly selects panels of 13 jurors (termed "public assessors" on Taobao) from a pool of 4 million volunteers. [7] : 66  Candidates must have been on Taobao for at least a year and have sufficiently high Sesame Credit ratings. [7] : 66  Volunteers earn experience points that can earn virtual titles and which can be "spent" for Taobao to make a donation to charity. [7] : 66 

All participants in the public jury process are anonymized and no communication between or among the disputing parties and the jurors are permitted. [7] : 66–67  Jurors review the case and vote within 48 hours. [7] : 67  The party with the most votes wins. [7] : 67  A party who is unsatisfied with the jury outcome can request further review by Taobao employees. [7] : 67  Taobao can implement jury decisions through means including freezing payments, taking money from a sellers' store deposit, lowering user ratings, or removing a party from the platform. [7] : 67 

Most public jury cases involve buyer-seller disputes. [7] : 67  In some instances, Taobao has used large juries of 800 to 1000 jurors to decide issues relating to platform governance. [7] : 67  For example, Taobao used a large jury to decide whether to allow a baby bottle manufacturer, Betta, to remain on the platform. [7] : 67  Betta was a legal but copycat style product of the popular Japanese brand Doctor Betta, which was also sold on Taobao. [7] : 67  Jurors voted to remove the copycat product from the platform. [7] : 67 

Golden Cudgel

In 2019, Taobao launched a dispute resolution called Golden Cudgel, named after the monkey king's magical weapon in the 16th century novel Journey to the West . [23] : 204  This mechanism allows sellers who have passed qualifying exams to remove a limited number of malicious reviews on a daily basis without prior permission from the platform. [23] : 204  Sellers must submit evidence to establish the dishonest nature of each removed review to enable review by the platform. [23] : 204  Sellers' ability to use the Golden Cudgel mechanism is revoked if they are found by the platform to have repeatedly removed reviews improperly. [23] : 204 

Services

Alipay

Launched in 2004, Alipay (simplified Chinese :支付宝; traditional Chinese :支付寶; pinyin :Zhīfùbǎo) is an escrow-based online payment platform. It is the preferred payment solution for Taobao Marketplace. It is the most widely used third-party online payment solution in China. [24] To ensure safe transactions, Alipay uses an escrow system through which payment is only released to the seller once the buyer has received goods in satisfactory condition. According to the Alibaba Group website, Alipay partners with multiple financial institutions as well as Visa and MasterCard to facilitate payments in China and abroad. [10]

At the time it was implemented, the mandatory escrow feature of Alipay was a major institutional innovation for e-commerce platforms. [7] : 53  This was a major reason Taobao was able to outcompete eBay/EachNet in the Chinese market. [7] : 53–54 

Alipay systems are separate for different groups of users. For instance, Alipay users may send and receive funds if they have an account that have a credit card issued in China, whereas users with other cards may only use Alipay to pay for goods or services from Taobao. [25] This has proven problematic for international users, as they are unable to receive refunds not issued via the Taobao system.

AliExpress

Aliexpress AliExpress pavilion on the territory of the Leningradsky railway station.jpg
Aliexpress

AliExpress was created in April 2010 as an international retailing website. People who live overseas can use the service to purchase items from Chinese manufacturers online. [26]

AliWangWang (TradeManager)

Taobao Marketplace allows buyers and sellers to communicate prior to the purchase through its embedded proprietary instant chat program, named AliWangWang (Chinese :阿里旺旺; pinyin :ĀlǐWàngWàng). [27]

Baopals

In February 2016, 3 expats living in Shanghai launched Baopals, a shopping platform that translates Taobao and Tmall into English so that foreigners living in China can access of its products and services. Over 2.4 million items have been sold on the platform.[ citation needed ]

Happy Taobao

In Dec. 2009, Taobao, together with Hunan TV, set up Happy Taobao, Inc for television shopping. Hunan TV launched an entertainment series called "Happy Taobao", while Taobao Marketplace created channels and independent websites.

Taobao Live

In 2018, Alibaba launched the streaming service named Alibaba Live. This service was created with the goal of allowing online retailers to market their products utilizing social shopping. [28] This has seen significant growth in popularity and success, with the 84 stores using this service reporting $7.4 million in 2020 sales. [29] Taobao stated that they predict live-streaming on their platform will generate over 500 billion sales transactions. [30] Taobao Live now has over 10,000 weblebrities promoting a wide range of items including as cosmetics, apparel, cuisine, and numerous electrical gadgets. Taobao Live's daily sales have already surpassed $3 billion. [31]

Alibaba promotes a new style of live streaming, called cūnbō (村播), that features rural sellers. Taobao has given them their own category in the app, with the purpose of making it easier for these rural sellers to find customers and followers on the platform. [32]

Singles' Day

Singles' Day (also known as the Double eleven shopping carnival, as in 11/11) is the largest Chinese online shopping day. It takes place on 11 November each year. [33] It takes the advantages of the Chinese singles day that was created by Chinese university students to celebrate their bachelordom. After the event was launched, it obtained widespread attention, attracting other e-commerce companies to imitate this model.

Singles day grew rapidly since its introduction in 2009. 2009 sales reached RMB50 million (£5.68 million): [34] Sales grew rapidly thereafter:

In 2016, Alibaba introduced the T-mall double eleven party, inviting celebrities who took part in a Victoria's Secret show. At the 2017 party, Jack Ma launched his film Gong Shou Dao [35] (Defend the Homeland with Kungfu).[ citation needed ]

Because of the huge trading volume and income in Singles Day, Taobao launched another promotional activity on December 12 (12/12), drove record trading every year thereafter.[ citation needed ]

Technology

Anti-fraud

Taobao has a five layer system for fraud detection. [7] : 65  "Account check" is the first layer: during this stage, automatic processes examine whether the account at issue has demonstrated suspicious activity. [7] : 65  Fraud cases deemed obvious at this layer are declined. [7] : 65  Taobao's system can also require further information and submit the transaction to the next three layers of automatic review: device check, activity check, and risk strategy. [7] : 65  Each check sends fraud cases deemed obvious to an automatic decision and refers potential no-obvious fraud to the next level. [7] : 65  These automated anti-fraud checks use big data models, including analysis of user behavioral data, network data, delivery details, and IP addresses. [7] : 65  The final level is manual review by Taobao employees. [7] : 65 

Taobao shares information with police and local courts to assist in locating sellers alleged to be selling counterfeit products. [7] : 65  For example, in 2014, collaboration with law enforcement resulted in 1,000 counterfeit cases, 400 arrests, and the shutdown of 200 related physical stores, warehouses, and factories. [7] : 65 

Markets

Taobao for Southeast Asia

In September 2013, Taobao launched its Southeast Asian site. A translation feature is available for major languages in Southeast Asia. [36] In September 2024, Taobao launched an English version of its app tailored specifically for users in Singapore. [37]

Controversies

Taobao has sometimes been the subject of in-person and online seller protests following major changes to its rules. [7] : 41  The largest seller protest was the 2011 "October Rising". [7] : 41  With the goal of reducing counterfeits and substandard products, Taobao had increased the Taobao Mall membership fees for sellers and their required cash deposits. [7] : 41  The rule changes were made without warning. [7] : 41  Approximately 50,000 sellers formed the "anti-Taobao alliance" for digital protest actions and in-person protest at Alibaba's headquarters. [7] : 41  The Chinese government mediated the dispute, resulting in Taobao revising its seller fees and providing 1.8 billion RMB in support for small businesses using the platform. [7] : 41 

In August 2017, the company removed controversial vendors offering personalised messages featuring African children over concerns of child exploitation. Some Chinese Taobao vendors claimed that their promotional videos featuring African children were "charity activity" in which most of the profits goes to the children. However the situation proved more complicated after a photographer contacted by the Beijing Youth Daily said "the children only received snacks or a few dollars as reward", indicating that there was legitimate child exploitation. [38]

In 2019, Taobao removed all items related to the Houston Rockets in response to the organization's general manager Daryl Morey posting a tweet about Hong Kong. [39]

In October 2020 amid rising geopolitical tensions between Taipei and Beijing, Taobao announced that it would exit the Taiwanese market after the Taiwanese government ordered the company to re-register as being backed by China or to leave the island if they don't. [40]

The mobile app of Taobao was banned in India (along with other Chinese apps) on 2 September 2020 by the government, the move came amid the 2020 China-India skirmish. [41] [42]

In 2022, the Office of the United States Trade Representative named Taobao on its list of Notorious Markets for Counterfeiting and Piracy. [43] [44]

Metrics

Taobao Marketplace had more than 5 million registered users as of June 2013 and hosted more than 80 million product listings. [45] It facilitated approximately RMB 200 billion in gross merchandise volume in 2009. [46] In September 2013, Taobao ranked 12th overall in Alexa's internet rankings. [47]

With over 1 billion product listings as of 2016, [48] the combined transaction volume of Taobao Marketplace and Tmall.com reached 3 trillion yuan in 2017. [49]

As of 2020, Taobao hosted ten million online stores, 726 million active buyers, and a gross merchandise value of $945 billion. [7] : 58 

As of 2021, Taobao was the 8th most visited website in the world and the 5th most visited website in China. [50]

As of at least 2024, it was the world's most popular online shopping platform as measured by gross merchandise value. [7] : 58 

Taobao villages

Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on Taobao. [51] : 112  Alibaba's research division defines Taobao villages as those in which (1) businesses are located in an administrative village in a rural area, (2) the village's annual e-commerce revenues exceed RMB 10 million, and (3) the village has either an excess of 100 active online shops or active online shops account for more than 10% of village households. [51] : 112 

Related Research Articles

E-commerce refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is the largest sector of the electronics industry and is in turn driven by the technological advances of the semiconductor industry.

<span class="mw-page-title-main">Amazon China</span> Chinese shopping website

Amazon China, formerly known as Joyo.com, is an online shopping website. Joyo.com was founded in early 2000 by the Chinese entrepreneur Lei Jun in Beijing, China. The company primarily sold books and other media goods, shipping to customers nationwide. Joyo.com was renamed to “Amazon China” when sold to Amazon Inc in 2004 for US$75 Million. Amazon China closed its domestic business in China in June 2019, offering only products from sellers located overseas.

<span class="mw-page-title-main">Alibaba Group</span> Chinese multinational technology company

Alibaba Group Holding Limited, branded as Alibaba, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via Chinese and global marketplaces, as well as local consumer, digital media and entertainment, logistics, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

<span class="mw-page-title-main">Alipay</span> Third-party mobile and online payment platform

Alipay is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group and its founder Jack Ma. In 2015, Alipay moved its headquarters to Pudong, Shanghai, although its parent company Ant Financial remains Hangzhou-based.

<span class="mw-page-title-main">Singles' Day</span> Unofficial Chinese shopping holiday

Singles' Day or Double 11 is an unofficial Chinese holiday for people who are not in a relationship. The date, 11 November (11/11), was chosen because the numeral 1 resembles a bare stick, Chinese Internet slang for an unmarried man. The four '1's also refer to the demographic group of single people. Ironically, the holiday has become a popular date on which to celebrate relationships: more than 4,000 couples got married in Beijing on this date in 2011, far greater than the daily average of 700 marriages.

Tmall, formerly Taobao Mall, is a Chinese-language website for business-to-consumer (B2C) online retail, spun off from Taobao, operated in China by Alibaba Group. It is a platform for local Chinese and international businesses to sell brand-name goods to consumers in Greater China. It has over 500 million monthly active users, as of February 2018. In the last few years, it has opened its features to brands, not only for online sales but also for developing brand awareness. According to Alexa Rank, it is the third most visited website globally in 2021.

<span class="mw-page-title-main">AliExpress</span> Online retail service based in China

AliExpress is an online retail service based in China and owned by the Alibaba Group. Launched in 2010, it is made up of small businesses in China and other locations, such as Singapore, that offer products to international online buyers. It is the most visited e-commerce website in Russia and was the 10th most popular website in Brazil. It facilitates small businesses to sell to customers all over the world. AliExpress has drawn comparison to eBay, as sellers are independent and use the platform to offer products to buyers. As of March 2024, the number of global users of the AliExpress mobile app reached 8.18 million, a 130% year-on-year increase, setting the highest record since statistics began in 2016.

WeChat red envelope is a mobile application developed by the Chinese technology company Tencent. The concept, also offered by its market competitors Alibaba and Baidu, is based on the Chinese tradition of hongbao, where money is given to family and friends as a gift. The application was launched by Tencent in January 2014 and has subsequently gained popularity, with Tencent reporting 2.3 billion transactions on 1 January 2016 alone.

<span class="mw-page-title-main">Lazada</span> Singaporean-Chinese multinational technology

Lazada Group is an international e-commerce company and one of the largest e-commerce operators in Southeast Asia, with over 10,000 third-party sellers as of November 2014, and 50 million annual active buyers as of September 2019.

Zhima Credit is a private company-run credit scoring and loyalty program system developed by Ant Group, an affiliate of Alibaba Group. It uses data from Alibaba's services to compile its score. Customers receive a score based on a variety of factors based on social media interactions and purchases carried out on Alibaba Group websites or paid for using its affiliate Ant Financial's Alipay mobile wallet. The rewards of having a high score include easier access to loans from Ant Financial and having a more trustworthy profile on e-commerce sites within the Alibaba Group. It has frequently been confused with the Social Credit System.

<span class="mw-page-title-main">Ant Group</span> Chinese financial services company

Ant Group, formerly known as Ant Financial, is an affiliate company of the Chinese conglomerate Alibaba Group. The group owns the world's largest mobile (digital) payment platform Alipay, which serves over 1.3 billion users and 80 million merchants, with total payment volume (TPV) reaching CN¥118 trillion in June 2020. It is the second largest financial services corporation in the world, behind Visa. In March 2019, The Wall Street Journal reported that Ant's flagship Tianhong Yu'e Bao money-market fund was the largest in the world, with over 588 million users, or more than a third of China's population, contributing cash to it.

Baopals is an online shopping platform based in Shanghai, China, that enables users to shop from Taobao, Tmall and Jingdong (JD) in English. The platform serves as a bridge to products and sellers from these Chinese platforms, with information updated in real-time and translated to English. Product organization, customer service, payment, and delivery are geared towards non-Chinese users. The platform is accessible online as well through the company's official WeChat service account.

Ele.me is the online food delivery and local life service platform of Alibaba Group. Founded in 2008, it is now the second largest online food delivery service platform in China.

AliGenie is a China-based open-platform intelligent personal assistant launched and developed by Alibaba Group, currently used in the Tmall Genie smart speaker. The platform was introduced in 2017, along with the Tmall Genie X1, at Alibaba's 2017 Computing Conference in Hangzhou.

<span class="mw-page-title-main">Xiaohongshu</span> Chinese social media and e-commerce platform

Xiaohongshu, also known as RED, REDnote, or more commonly as XHS, is a social media and e-commerce platform. In the Xiaohongshu community, information is presented in a Pinterest-style layout, but combined with video and live streaming features, and users can also share product reviews and text descriptions of travel destinations. It has been described as "China's answer to Instagram", and simply as "Chinese Instagram".

<span class="mw-page-title-main">Pinduoduo</span> Chinese e-commerce company

Pinduoduo Inc. is a Chinese online retailer with a focus on the traditional agriculture industry. The business is the largest product of PDD Holdings, which also owns the online marketplace Temu.

BATX is an acronym standing for Baidu, Alibaba, Tencent, and Xiaomi, the four biggest tech firms in China, often compared to GAMMA in the United States. BATX were some of the first tech companies started in the 2000s during the rise of the Chinese technology revolution and quickly became widely used among Chinese netizens. Notably after 2015, some other tech companies like Huawei, DiDi, JD, DJI and ByteDance have also become some of the up-and-coming biggest tech giants in the industry.

A super-app, also known as an everything-app, is a mobile or web application that can provide multiple services including payment and instant messaging services, effectively becoming an all-encompassing self-contained commerce and communication online platform that embraces many aspects of personal and commercial life. Notable examples of super-apps include Tencent's WeChat in China, Tata Neu in India, and Grab in Southeast Asia.

Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on e-commerce via the Taobao online retail platform. Taobao villages have contributed to economic development and rural revitalization in China.

China is the world's largest market for e-commerce. Domestic e-commerce firms have the greatest share of China's market, with foreign companies having a comparatively small presence. The expansion of e-commerce in China has resulted in particular e-commerce patterns like the development of Taobao villages and livestreaming e-commerce.

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