It appears Alibaba Group (Pending:BABA) will collect big money from its NYSE IPO, however it was Seattle’s Amazon that cashes in on the future of China’s $400 billion online shopping industry. It was Amazon’s (NASDAQ:AMZN) China connections ins business that seems to cover all facets. They have deliver, customer service, product quality, price comparison that is in competition with Alibaba’s Taobao business. This is all due to the actions of Jeff Bezos who has been shoring up his growing business throughout China and is establishing a stronger base than that of Alibaba’s boss, Jack Ma.
The mystery surrounding what Amazon’s China business sector is doing has people’s minds boggling. They are accused of putting too much investment in and not being as transparent as they should plus not showing as much a profit as expected. Amazon has invested tons in its China businesses and appears to be wanting to overtake Alibaba at some point. This has Amazon running like a submarine on a secret mission, running silent and running deep. This means investors, media, just about everyone affected by Amazon is wondering what is going on.
Not even in their communication to shareholders and others on their lines has Amazon alerted anyone as to what they’re doing in China. This may be cloak and dagger but it could mean something big, super big for Amazon to the point of a future of bounty. It could be that Amazon is working like some super secret project the likes of which haven’t been seen on the web. It could be that their Chinese operations will be the success of the galaxy.
Since Jeff Bezos has been a pioneer regarding online shopping the battle for supremacy began when Bezos’ first shop opened in 2004. Jack Ma’s opened a year earlier in 2003 and trounced eBay. Buyers and sellers couldn’t resist being able to buy and sell without having to pay a commission. Ebay died on the vine in China and Ma’s Alibaba took over growing from $170 million to $6 billion in fiscal 2013. With that kind of growth we’re looking at $1 trillion by the end of this decade.
Taobao is a madhouse of a company. Buyers and sellers have no security and just do as they please. Selling counterfeit goods, substandard goods without any fear of repercussion. No selling or buying fees and charging anything they want for shipping makes Taobao an online pirate’s dream. People fall victim to their own greed and lust for cheap goods and that keeps Taobao going strong. It will take Bezos to come up with something the Chinese culture doesn’t have and protects outsiders from fraud.