Comment Re:more direct connection to producers (Score 3, Insightful) 191
The reason Alibaba will take over from Amazon and Ebay is simple. Two things.
First, scale. It moves more product than Amazon and Ebay COMBINED, and that's before even entering the US market. The network effect will dominate.
Second the vast majority of what Amazon and (especially!) Ebay sells is made in factories in China anyway. Alibaba will allow cheaper prices for the same products without having to go through the middlemen and let Ama/Eba skim off profits in the middle.
If i can buy a part directly from the manufacturer in China for $3.99, I'm not going to pay $11.99 for Amazon to deliver it to me or even $5.99 for an Ebay reseller.
Alibaba will have a price advantage on the other big players, and that's what'll matter in the end.
I sure wouldn't be wanting to hang onto Amazon or Ebay stock right now (assuming either have stock, sorry I don't keep track of things like that).
Right... So, people have stopped buying monitors from Dell simply because they can buy similar Korean monitors direct on eBay? No? Oh, right, because people like to have warranties and have the ability to get stuff replaced in a timely manner when it fails.
Also, you're wrong about Alibaba's business model today. They are the middle men between the manufacturer and the storefront. They do have an eBay style system, but it's used by independents, not Alibaba, to sell products. And yes, they also have a Paypal type service, but it would have to clear a large number of hurdles to become trusted in the US.