Alibaba, the largest e-commerce player in China, is often compared to the U.S. online retail giant Amazon. However, Alibaba’s business model is more akin to that of eBay. It provides the technology infrastructure and marketing reach to businesses, enabling them to leverage the power of Internet and conduct their business online. Alibaba does not have any inventory of its own. Amazon, on the other hand, primarily sells its own merchandise, in addition to providing a marketplace to other players. The retailer owns warehouses, stocks inventory and functions like any other retail player with an online store. Therefore, we believe Alibaba’s business model is more nimble and could help it expand much faster compared to Amazon.

from Forbes – Tech http://ift.tt/1R9kaQO
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