According to the Wall-Street Journal report about Asia’s 200 most admired companies in China, Alibaba.com is ranked number one. Alibaba’s consumer-auction site is Taobao. This year’s gross merchandise volume of Taobao will be $60 billion. Alibaba’s founder, Ying Ma, is a secondary school English teacher. He had no knowledge about computer but 10 years ago he foresaw the future commercial trend would be heading into E-commerce. Therefore, he created the Taobao. 10 years ago, E-commerce had three big problems; the first problem was the security of paying online; the second problem was the credit of sellers and buyers. And the third problem was computers were not widely used by people. However, after years and years developing, these problems were solved. Taobao setup a paying system called Zhi Fu Bao. When a buyer buys products online, the buyers will make a order to sellers. The buyer pays the bills to Zhi Fu Bao and Zhi Fu Bao will hold the money until the buyer receive, check the quality of the product and confirm there is no mistake. Then Zhi Fu Bao will transfer the money to the sellers. Through this process Zhi Fu Bao earns huge commission through billions of transfers and also earns huge interest by holding the buyers’ money on its bank account. At the beginning, buyers and sellers worried about each other’s credit; but nowadays, even diamonds can also be traded widely online. Lately, computers are widely used by everyone; Therefore, E-commerce must be tremendously increasing. Ying Ma said that if entrepreneurs don’t invest in E-commerce within 5 years from now, they will regret deeply.
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