While most online sellers were preparing for the busy holiday shopping season, Chinese e-commerce behemoth Alibaba was making an important announcement. Alibaba subsidiaries Taobao (the Chinese version of eBay) and T-mall (their version of Amazon) sold $3.06 billion in products and they did so in a single twenty-four hour period. Yes, you read that correctly. That’s a ‘b’ as in billion and that’s ‘24’ as in a single day. When you consider that $3 billion is triple the online sales the US generates on a single Thanksgiving weekend, everyone wants to know – how did Alibaba sell so much product so quickly?
The Chinese Online Market
The Chinese online marketing is maturing rapidly and Alibaba is a cornerstone within that market. The two online sites, Taobao and Tmall, share a combined active user base of over half a billion people. That number may seem large, and it is compared to US totals, but it only represents about 30% of the total Chinese population. This means that Alibaba and its subsidiaries have an open road for continued growth and many experts agree that $10 billion in sales in a single day is not impossible in the coming years.