This story has popped up in a few places today, but all links point to one source. The ChinaTechNews.com piece is tantalising in its suggestions but not in its detail. Who are these 16 "dealers" who want a 40% discount from Alibaba.com? Why are they so dissatisfied? Where did the story come from?
P.S. This story has those deeply irritating ContentLink pop-ups which make you doubt whether there is any editorial integrity behind the web site. Paul Conley has been railing against this technology for months. I personally can't imagine why advertisers would be stupid enough to pay for it but, as long as they do, I fear we will see plenty of it in China.
Monday, April 23, 2007
Alibaba dealers' rebellion?
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Who are these 16 "dealers" who want a 40% discount from Alibaba.com? Why are they so dissatisfied?
Yes, we all want to know that.
Actually, it would be quite an interesting study to understand Alibaba.com markets its services to China Gold suppliers?
Knowing the China manufacturers and traders, it is no secret that Alibaba.com has not attracted their business just by online approahces.
How does Alibaba go about getting this business? Is it secured through dealers or franchisees who in turn set up their own infrastructure and employ their own subscription/ad sales agents to get the business for Alibaba.com on revenue shring or multi-tier commission basis?
Selling Alibaba subscription or for that matter any advertising space to small and medim export trade enterprises in China and collecting money is a tough job. Their profit margins are tight and mortality rate high.
Perhaps you can give an insight on this aspect of Alibaba.com's business comparing it with how Global Sources or other portals like Made-in-China.com go about selling their subscription and ad space. Have they got in-house sales teams to do that or do they also appoint dealers?
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