What is Alibaba Group's core business?
Alibaba Group, together with our related companies, operates an ecosystem where online and mobile commerce participants can leverage the power of the Internet to establish and grow their business as well as meet consumer demand efficiently. Since our inception, we and our related companies have developed and expanded to operate a range of Internet-based businesses in retail and wholesale trade, as well as online payment and cloud computing. For more information on our key offerings, please visit the Our Businesses
Who are Alibaba Group's customers?
Our customers include both buyers and sellers on our marketplaces, and they discover, select and transact with each other on our platform. Buyers access our marketplaces free of charge. Buyers include consumers who come to our retail marketplaces to shop for anything anytime anywhere, as well as business buyers who use our wholesale marketplaces to source products for use in their own business or for resale. Sellers use our marketplaces to establish a presence on the Internet and market products and services to hundreds of millions of consumers and other businesses. Sellers include brands, retailers, wholesalers and manufacturers. We also provide cloud computing services to a wide range of customers including merchants doing business on our marketplaces, systems integrators, mobile app developers and digital entertainment companies.
What do you mean when you refer to the "Alibaba ecosystem"?
Given the scale we have been able to achieve, an ecosystem has developed around our platform that consists of buyers, sellers, third-party service providers, strategic alliance partners, and investee companies. Our platform and the role we play in connecting buyers and sellers and making it possible for them to do business anytime and anywhere is at the nexus of this ecosystem. Much of our effort, our time and our energy is spent on initiatives that are for the greater good of the ecosystem and the various participants in it. We feel a strong responsibility for the continued development of the ecosystem and we take ownership for this development. Accordingly, we refer to this as "our ecosystem."
How does Alibaba Group make money?
We primarily monetize our China retail marketplaces (Taobao Marketplace, Tmall.com and Juhuasuan) through online marketing services (e.g. pay-for-performance, display marketing, Taobaoke program and placement services) and commissions on transactions. For wholesale marketplaces, we derive revenue by charging fees for memberships and value-added services. We also generate revenues from cloud computing and Internet infrastructure services primarily from the time- and usage-based provision of cloud computing services.
How does Alibaba Group grow its business?
Our growth strategies are:
- Increase the number of active buyers on our marketplaces and the wallet share of our existing buyers
- Develop and promote additional product and service categories and offerings
- Extend our mobile leadership to become central to the everyday lives of our customers
- Enhance the success of a broad base of sellers on our marketplaces
- Enhance our data and cloud computing technologies
- Develop cross-border commerce opportunities
What are P4P marketing services?
Pay-for-performance (P4P) marketing services are one type of marketing services we offer to sellers on our marketplaces, where sellers bid for keywords that match product or service listings appearing in search or browser results on a cost-per-click, or CPC, basis at prices established by our online auction system, which facilitates price discovery through a market-based bidding mechanism. P4P marketing services are provided both on our marketplaces as well as through third-party marketing affiliates.
How much commission do sellers have to pay for a transaction completed on Tmall.com?
Sellers on Tmall.com and Tmall Global pay commissions based on a pre-determined percentage of GMV for transactions settled through Alipay that varies by product category, and typically ranges from 0.3% to 5%. Sellers also pay an annual upfront service fee, up to 100% of which may be refunded depending on sales volume achieved by the seller within each year. Sellers also pay a security deposit to back-stop potential claims under our consumer protection programs.