Alibaba Company’S Online Sellers
Alibaba Company’s Online Sellers Proposal
Alibaba is one of the most profitable online sellers on the earth. This online platform “dominates the world’s largest e-commerce market” (Rein 27). It earns billions of dollars each year. The company was set up in 1999 as a platform for small enterprise and consumers who may promote and purchase items safely online (“About Alibaba.com”).
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It is noteworthy that the company earned its popularity due to the large array of products out there and the payment system individuals may trust. When different online sellers used cost methods that were little known to Chines folks or could be unsafe, Alibaba used Alipay system that was safe and identified to the corporate’s prospects.
However, the Chinese platform has been criticized by various producers (together with Adidas, Gucci, Yves Saint Laurent and so on) as various counterfeit merchandise are sold and purchased there (Chu). It is critical to notice that selling counterfeit items is unlawful in many nations (including China) as these items break copyright laws, and they are often unsafe for purchasers (Narayanan 21).
Of course, producers of products (particularly famous manufacturers) lose hundreds of thousands and even billions of dollars due to the problem. The company largely ignored accusations, but it took definite steps to deal with the problem in 2011 (Hu and Guo 237). Alibaba had to make such a choice to maintain its clients, brands known worldwide.
The paper will include an analysis of the steps undertaken and a few recommendations on the way to improve the scenario. Thus, Alibaba’s spokesman claims that they maintain working with numerous manufacturers “to help them defend their mental property” (Raymond). One of the principal steps is the development of Tmall web site.
This platform is characterized by sales instantly from the manufacturers’ storehouses. Of course, this website has earned trust among customers who’re sure that they purchase genuine merchandise (Rein 28). Notably, one of the first corporations to hitch the platform was Adidas. However, it is also necessary to add that varied counterfeit merchandise are sold with the usage of the rest of web sites that are a part of the platform.
Another step undertaken is the event of a specific reporting system. Producers can fill in sure varieties to report about counterfeit products discovered at the websites. However, producers argue that the brand new system is extra difficult, and it makes it tough or even impossible to report (Chu). Producers stress that the brand new reporting methods are inefficient and ought to be changed.
It can be really helpful to change the reporting system. It ought to be easy, and the company should undertake explicit steps to respond to each report. Alibaba’s officers declare that the corporate spends $16 million on tracking counterfeit products and reacting adequately. The development of an environment friendly reporting system will assist optimize the method and cut back the expenditure. It can also be effective to launch new websites that sell goods immediately from firms’ storehouses.
Old websites where most counterfeit merchandise are discovered must be closed. Finally, the platform must also have a comprehensive IPR safety policy that would make sure that the producers and sellers are responsible. This coverage ought to contain important fines for violators as well as the likelihood to restrict the activity of the violators at Alibaba. The firm may also be an initiator of the creation of a single database of repetitive offenders and sellers of counterfeit merchandise that will be available for producers and customers.
About Alibaba. 2015. Web.
Chu, Kathy. “Alibaba Revamps Fake-Goods Procedures.” The Wall Street Journal 2015. Web.
Hu, Weiwei, and Yimeei Guo. “Combating Against Counterfeit: Third Party E-Commerce Trade Platform’s Liability Analysis.” Research on Selected China’s Legal Issues of E-Business. Ed. Yimeei Guo. New York: Springer, 2014. 231-239. Print.
Narayanan, Sukumar. “Global Issues and Threats of E-Commerce on Counterfeit Batteries.” International Journal of Advance Research in Computer Science and Management Studies 2.2 (2014): 21-27. Print.
Raymond, Nate. “Alibaba Sued in US by Luxury Brands over Counterfeit Goods.” Reuters 2015. Web.
Rein, Shaun. The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia. Hoboken: John WILEY & Sons, 2014. Print.
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