Alibaba claims its transaction volume will beat Amazon and eBay combined this year

Alibaba Group is making a pretty penny and will further its sales volume by the end of this year. These were the remarks from Zeng Ming, Alibaba’s chief strategy officer. Ming went on to say that the company’s value of merchandize will surpass that of Amazon and eBay combined.

The company holds a major share in the Chinese market and are considered the most powerful e-commerce source in the country. It business unit Taobao holds almost 70 percent of the market share while the business-to-business e-commerce website Alibaba.com is also a prominent figure in the company’s portfolio.

Taobao is the main online shopping centre in China and though Amazon and eBay also operate in the region, the local shop has more customer traffic, easily surpassing both American companies’ transaction volume combined.

“From their annual reports we did a rough calculation and we were similar last year but we are growing faster than them, so this year we are probably larger than them,” Zeng told reporters. “The gap is just going to get bigger and bigger when we grow faster.”

Though he did not give any specific figures or strategies on how to accomplish the aforementioned claim, Ming was of the opinion that its annual transaction value from Taobao will be somewhere in the neighbourhood of 3 Trillion Yuan (roughly $473 Billion) during the next five years.

Amazon posted annual sales of $48.1 Billion and eBay recorded sales of $60.4 Billion in 2011.

Alibaba Group had a diminutive setback earlier this year when Yahoo, Inc., a US-based e-commerce company, shed all $7.1 Billion stake in Alibaba.com. Alibaba Group had to take in all the stock. However, experts say that the group might again trade the shares publicly by 2015.

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Posted by Usman Khalid on Sep 12 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.