Growing pains at Taobao

The following is from the blog China Web2.0 Review:

Taobao May Cancel Zhaocaijinbao Service: "As...reported early, Taobao, the leader in Chinese C2C market, introduced a new service called Zhaocaijinbao to take advantage of keywords auction business model of search engine. However, less than a month later, Taobao may have to cancel the service.

Since the service favors big sellers than small ones, many sellers made an alliance to fight against Taobao’s Zhaocaijinbao service. They said to take action together to suspend their shops on June 1st and draw cash from Alipay, Alibaba’s answer to Paypal. While at the same time, Paipai, C2C service by Tencent, are trying to attract those angry sellers of Taobao to change to use Paipai.

So Jack Ma, CEO of Taobao and Alibaba, had to response the anti-Taobao campaign, and wrote a post to explain the situation. Taobao also decided to launch a vote to let all users to decide whether Taobao should keep the Zhaocaijinbao service. The vote started today and will be closed at noon on June 10th. Then by that time, we will know whether Taobao can successfully continue this service.