A Guide to ECommerce: Amazon vs Ebay vs Alibaba vs TaoBao vs DHgate vs Banggood vs Tmall vs AliExpress

Those of us in the West have been using ecommerce sites lite Amazon and eBay since the dawn of the internet in the mid-1990’s, but as is often the case those who start second learn from others mistakes and are even more successful.  Today every chain retailer has an ecommerce site but there are a few giant Chinese companies that are poised to take over the world.

There are dozens of highly successful ecommerce players in the Chinese market but we have decided to ignore (for now!) some giant competitors like TenCent.com , 1688.com and JD.com that are not expected to have a notable presence in Canada or the United States.

China is not kidding around and their companies are fierce competitors that you may not have heard of yet… but you will:

amazon dot comAMAZON.COM IN ONE SENTENCE

The original successful ecommerce behemoth based in the US with global operations run by an aggressive American with eyes on every prize.
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ebay dot comeBAY IN ONE SENTENCE

The original auction site describe by many as the worlds largest garage sale, that has frittered away its giant lead in many fields including online payments, business to business sale and everything China.
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Alibaba dot comALIBABA IN ONE SENTENCE

Founded as the fourth (yes, 4th!) successful business-to-business giant the grew to be number one through the efforts of its visionary and humble founder Jack Ma and backed by Japan’s SoftBank.
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taobao dot comTAOBAO IN ONE SENTENCE

AliBaba’s version of eBay that they developed into a success turning eBay China from the largest play to a completely lost cause in just two years.

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dhgate dot comDHGATE IN ONE SENTENCE

Founded by former Microsoft, Cisco manager Diane Wang, the name DHgate refers to an important point on Silk Road linking the China to the rest of the world, that provides a platform for Asia Pacific companies to sell to consumers and is now the largest business to business platform in China.

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banggood dot comBANGGOOD IN ONE SENTENCE

Following the success of Alibaba’s Taobao, Banggood saw an opportunity to provide a platform for the millions of small and medium sized Chinese businesses to sell online to consumers, and has now grown to have serious warehouse operations in China, Australia, Europe and California.

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tmall dot comTMALL IN ONE SENTENCE

Another Alibaba Jack Ma success, Tmall is the exclusive shopping site for validated (read: no knock offs) high quality major brands in China which costs tens of thousands of dollars per year for companies to operate on.

 

aliexpress dot comALIEXPRESS IN ONE SENTENCE

Yet another Jack Ma global expansion project, AliExpress is the global version of Taobao.com much like eBay.

 

 

Easy Comparison Grid: Amazon vs Ebay vs Alibaba vs TaoBao vs DHgate vs Bangood vs Tmall vs AliExpress

Amazon eBay Alibaba TaoBao DHgate Banggood Tmall AliExpress

CORPORATE

Year Founded 1994 1995 1999 2003 2004 2006 2008 2010
Pricing Model Fixed Price Mostly Auction Fixed – Negotiable Fixed – Negotiable Fixed – Negotiable Fixed Fixed – Negotiable Fixed – Negotiable
Primary Market Global Global – not China Global China Global Global China Global
Founded By Jeff Bezos Peirre Omidyar Jack Ma Jack Ma Dianne Wang Arron Chen Jack Ma Jack Ma
CEO in 2020 Jeff Bezos Scott Schenkel Jack Ma Jack Ma Dianne Wang Arron Chen Jack Ma Jack Ma
Parent Company Amazon eBay Alibaba Alibaba DHGate Banggood Alibaba Alibaba
Listing Fees Yes Seldom Free to Start No No ? Large Yes
Sales Fees Yes Yes No No Yes ? Yes Yes
Who Pays Sales Fees Seller Seller Seller Seller Seller ? Seller Seller
Minimum Order Size 1 1 Usually>100 1 1 1 1 1
Number of Staff 750000 14000 102000 400 568 4500 400 500
# of Warehouses 175 Just transit 173 – Video See Alibaba Several 37 Global See Alibaba See Alibaba

SCALE

Global Sales USD $90B $22B $55B Large Large $.35B Massive Large
Number of Listings 12M 1.3B ? 1B 33M ? 50M 100M
Number of Sellers 2M 25M 1M 60M 2.2M ? .2M ?
Number of Buyers 300M 182M 10M 660M 26M ? 500M 60M
Country of Origin US US China China China China China China
Pref.Payment Proxy CreditCard PayPal AliPay AliPay PayPal PayPal Alibaba AliPay
Shipping Costs Often free Often Free Mixed Usually Free Often free Usually Free Usually Free Often Free

CONSUMER

Business to Business Yes No Yes No Yes Yes No No
Business to Consumer Yes Yes No Yes Yes Yes Yes Yes
Consumer to Consumer No Yes No Yes No No No Yes
Buyer protection Usually Yes Limited Usually Limited Limited Yes Yes
Private label products Yes No Yes No No No No No
Delivery Time to US UK Canada 1 Day < 5 Days 15-60 days 15-60 days 5-60 days 15-60 days 15-60 days 15-60 days

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