Influence for small producers by online trading platform

On Nov. 11 last year, the majority of Chinese begin to touch the online shop since the “single’s day” activity by Alibaba, more than 3 billion dollars had been processed by Alibaba. This year, Alibaba group continues this successful trade activity and to sum up, obviously its successful again.In total, Alibaba processed more than $5.75-billion (U.S.) on Monday.

As for small Firm, in traditional business system, these firm always have to compromise with markets because they need goods markets to sell the goods to individuals, the role of supplier is replenishing goods for them, however, recent years Alibaba gave these firms a trading platform to trade with consumers, which means, without sell goods by the markets, other portal for selling products can be used, these portal will not influence the selling in the market and do not occupy lots of resource during the trade, however, when the sale become the majority of total sale, company always become inequality for small firm, sometimes they have to stand the rules of online trading platform and they also cannot compete with other firm in normal market because the sale in online shopping always become the main sale in total sale.


News, Bloomberg. “Alibaba Breaks Sales Record Amid China Singles-Day Rebate.” Bloomberg.com. 12 Nov. 2013. Bloomberg. 16 Nov. 2013 .

http://www.theglobeandmail.com/report-on-business/chinas-cyber-shopping-holiday-breaks-global-records/article15381123/

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