Alibaba.com @ Online Retailer Expo

Grow your business with

SMART SOURCING

Daphne Lee

International Business Development & Marketing

Alibaba.com September 27, 2011

1999 2011

Jack’s apartment

Hangzhou, China

Alibaba Group Overview

• Founded in 1999 by Jack Ma, CEO of Alibaba Group

• Alibaba group now has 20,000+ employees and 60 offices in China,

Hong Kong, Taiwan, Korea, USA, UK and India.

View from the sky bridge at Alibaba.com corporate

campus in Hangzhou, China

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Alibaba Group Overview

China's largest

C2C and B2C

retail website.

In year 2010,

Taobao has 370

million users, 4.7

million sellers.

2010 GMV near

400 billion

RMB. (app. 60

billion USD)

China's leading

third-party

online payment

platform, 550

million users.

Up to 5.5 M

transactions

amounting to

over RMB 1.4

billion daily.

One of China's

leading

Internet portals

A decade later, Alibaba Group has become the largest e-commerce

company in China and a family of Internet-based businesses

World Largest B2B marketplaces

Alibaba.com Limited (HK

stock code: 1688)

Alibaba.com is a flagship company of Alibaba Group • The world’s largest online B2B marketplace

• Search and compare with over 9.2 million storefronts worldwide

• Easier than searching Google – targeted niche search engine

• Free membership

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Alibaba.com - B2B Marketplaces

Alibaba.com B2B eCommerce |

International Marketplace

Key features on product listing page:

2. Supplier/Product Information • Company Products

• Company Profile

• Company Video

3. Value-Added Services (VAS) • Keyword Search

• Premium Placement

• Virtual Showroom

4. Real-time Communication &

Inquiry • Trade Manager

• Email

1. Search Engine • Keyword Search

• Product Category

Australia member base

• AU membership base seen

steady growth over past 4 years

• Australia is one of the largest

markets for Alibaba.com,

accounting for 3% of total

21.6M international registered

users

Reg. Members YoY

Dec. 2006 60,700

Dec. 2007 113,700 87%

Dec. 2008 183,900 62%

Dec. 2009 272,700 48%

Dec. 2010 498,000 82%

Jun. 2011 627,676 79%

• Vast majority of registered

members are buyers. 97% have

potential buying demand.

To Grow Your Business with Smart Sourcing

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Tips for Smart Online Sourcing

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Research Effectively

Verify Suppliers

Safe Payment

Quality Control

RESEARCH:

Alibaba.com Platform:

Largest platform of suppliers

Plethora of products to choose from

Greater convenience in sourcing

Q: What is the best way to shortlist your

suppliers efficiently and effectively?

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Alibaba.com Search & Filter

Search: Product, Country or Category

– Try added specifications and using ―quotation marks‖

Refine: Categories, Materials, Supplier location, etc.

– Filters ADJUST to your search item

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Products:

-Image

-Description

-Min. Order

Alibaba.com Search Results

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Suppliers:

-Name & Type

-Location

-Supplier Profile

Tools:

-Gold Supplier

-Trade Manager

-Contact Supplier

Other Buying Tools

(2) Post a Buying Lead to let

the right suppliers find you

(3) Subscribe to Trade Alerts

to get updates on the latest

products

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(1) Submit RFQ for

customized matching

service from Alibaba.com

VERIFY Suppliers

Verify supplier quality:

Best price is not the only thing to consider!

Basic verification steps:

―Due diligence online

――About Us‖ section, E-mail, Phone, Zip Code

―Check company capability through online profile,

e.g. certificate, ODM/OEM experience

―Beware of companies with incomplete details or who

use only mobile phone to contact you

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Alibaba.com Verification Tools

Gold Suppliers: Paying members

A&V and Onsite Check : Verify basic supplier details, new

Gold Suppliers must be checked by Alibaba.com

Factory Audit: Certified by third party partner

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To Refine

Online Tools

Factory Audit Reports

Third party audits supplier to verify information and take

pictures onsite

Buyers can use reports to assess supplier credentials and

capabilities

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Find reports from the supplier’s TrustPass profile page

Click ―View the Report Summary‖ to request a copy of the

report for free

Request Report

Other Verification Tips

Keep initial contact simple:

—Get message across with as little information as

possible

―Don’t ask for RFQ in during first contact in China

Additional methods of verification:

―Local Embassy & Chamber of Commerce

―Foreign trade forums - Alibaba.com Safe Trading

Forums

―Bank verification

―Credit report

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PAYMENT Security & Safety

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Popular Payment Methods:

Telegraphic Transfer: Buyers/seller with a trustworthy

relationship. Risk 100% with buyer.

Letter of Credit: Buyer’s bank guarantees they’ll pay for

goods, provided supplier agrees to set of clauses.

Document against Payment : Exporter ships goods and gives

document to bank to forward to buyer’s bank.

Open Account: Exporter receives payment after buyer has

received and inspected goods. Risk is 100% with seller.

Escrow: Legal arrangement where money is paid to a third

party and held in trust until goods are delivered.

EVENLY shared risk

Payment Safety & Security

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Key features:

Secure payment online

Dispute resolution service from Alibaba.com

Information protection by VeriSign

Alibaba.com Escrow: Buyer pays Alibaba.com Escrow,

where money is held until buyer receives goods and

releases payment to supplier

Using Alibaba.com Escrow

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Sort by suppliers

offering Escrow

Order with Escrow

To Order

To Refine

Quality Control

Take measures to avoid sub-standard products: Quality control

checks help provide a smooth supply process and reduces the number

of customer complaints

Travel to potential trade partner’s place of business: Inspect the

factory, production, products, etc.

Hire Inspection Services: Efficient way to do quality control for the

during production and shipment process

―Alibaba.com Inspection Service: New platform for inspection

service providers and buyers

Initial Production: 10% of goods produced

During Production: 25-40% of goods produced

Final Random Check: 80% packed ready for dispatch

Container Loading: Goods being loaded for shipping

Other Services: Specified by inspectors

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Alibaba.com Inspection Platform

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Benefits to buyers:

Reliable pre-validated inspectors

Wide range of inspectors

Ease and convenience

Secure payment

Guaranteed quality

Using Inspection Platform

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To use: Select location of inspector and industry for product

Results: Company details, Price, Inspection Type, Serviced

Location and Languages provided

Online tools: Trade Manager, Contact Inspector

To Use

Online Tools

Other QC Measures

Selection process

ISO Accreditation: Indicator of commitment to quality

Request a sample: Assures quality before you commit to

the deal 100 percent

―Be sure standard of quality is clearly stated in your

purchase contract

Shipment process:

Freight Forwarder: Helps get transport information

(shipping rates/routes), books cargo space, and prepares

importing documents.

—AU Gov. Website: Resource, www.austrade.gov.au/Finding-

freight-forwarder/default.aspx

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SUCCESSFUL STORIES

IN AUSTRALIA

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AU Big Buyers on Alibaba.com

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Australia

Australia Buyers on Alibaba.com

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Founded in 2004 Dealsdirect.com.au makes shopping easy for the millions of people living in Australia

Dedicated team of buyers, majority of sourcing done

on Alibaba.com

Roughly 30-80% less than recommended retail prices on all of our products

Wide range of product choices

Guaranteed low prices

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Buyer Testimonial: Andrew Morello

Andrew Morello, Winner of The

Apprentice 2009 (Australia)

“If there’s something you

need, go to Alibaba.com

and source the best

possible products at the

best possible price.”

“The major benefit of Alibaba.com is

its simplicity. There are a lot of

supplier websites out there now, but

none as detailed or as simple to use

as Alibaba.com.”

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Welcome to visit Au.alibaba.com

Alibaba.com Australia Fans Page

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Thank You &

Join us free today !