The majority of people have been doing their shopping online for a while now. Everything can now be purchased online, including books, clothes, shoes, jewelry, and even food. However, not only shops but also entire trade platforms are becoming more well-liked. Most web users are familiar with the websites AliExpress and Alibaba. These Chinese platforms are essentially incredible treasure troves with their mysteries. Isn’t it exciting to learn about some of them?
If you are thinking about how to create a similar multi-vendor platform with similar functionality but don’t know where to start, then today’s article will help you, as will a professional team that has extensive experience in Magento extension development. Let’s not wait too long; let’s figure it out.
What is Alibaba, and what sets it apart from Aliexpress?
The Alibaba Group’s primary and oldest asset is the Alibaba marketplace. It was established in 1999 and initially experienced significant losses, but it started to develop quickly after it entered the US market in 2003. The platform has been successfully functioning to this day, because, based on statistics, in 2022 its income is more than 800,000 yuan, which is about 100,000 dollars. The company’s growth also sees an increase in the number of assets it owns. Thus, the AliExpress trading platform got up and running in 2010. Although it was developed by the same business as Alibaba, buying things from this source is simpler for an individual customer.
These are marketplaces for online stores and they provide goods from China, so these sites are similar, and sometimes it is difficult to figure out which is better and where to order the goods. But there are many more differences, so let’s take a closer look:
- Wholesale and retail. Alibaba is a large wholesaler. You can also find here the opportunity to purchase goods by the piece. However, there are only a few such stores on this site, and the offer will be unprofitable. The second one was envisaged by the developers for retail trade and small wholesale;
- Method of delivery and payment. Aliexpress offers buyers up to 20 payment options for the goods, and they are delivered by mail, so the consumer does not have to worry. Alibaba brings suppliers and consumers together. Further, on the method and terms of delivery, as well as payment, they agree on their own;
- Guarantees. When buying on Alibaba, the contract is drawn up directly between the supplier and the consumer. The site does not give guarantees. On Aliexpress, the seller receives money only after the delivery, and in case of non-compliance, the buyer can open a dispute using the appropriate section of the site;
- Range. There are also identical products on these sites. However, most of them differ, including due to different suppliers and their target audiences.
What is Alibaba’s business model?
Before creating a website like Alibaba, think about how the platform will generate revenue. Alibaba.com does not charge any listing or transaction fees. Anyone can sign up for a free account, and the platform serves as a mediator to control how buyers and sellers interact. With this strategy, they quickly build up a sizable supplier network, which draws more users to the platform. Paid advertising and membership fees are Alibaba’s key revenue streams. There are two different supplier memberships:
Supplier membership is free. Alibaba doesn’t charge its suppliers anything to list their goods on the website. They are permitted to freely display up to 50 things on the website and accept orders. If the buyer uses Alipay and the vendor is from mainland China, Hong Kong, or Taiwan, Alibaba only earns money from them in the form of commissions.
Premium supplier. Suppliers from China cannot become free suppliers and are forced to buy a premium membership. Vendors must pay specific fees to be approved as suppliers on the website. Each and every Gold Supplier member is subject to a stringent authentication and verification process, as well as requirements compliance.
A website like Alibaba’s core features
Alibaba is a giant trading platform that uses advanced analytics, neural networks, big data, and hundreds of other sophisticated technologies in addition to standard features. Starting such a project from scratch is very expensive, difficult, and time-consuming. It is better to create a clone of the Alibaba site with a basic set of functions, which will save resources and allow you to get to market faster. After launch, the list of functions can be expanded as needed.
Functions for the buyer’s role:
- Registration and entry;
- Site search and navigation;
- Order processing and tracking;
- Capabilities in multiple languages and currencies;
- Several payment options;
- Communication with sellers and administration.
Features of a multi-vendor website for the seller’s role:
- Registration and entry;
- Creating an ad
- Logistics management;
- Order management;
- Order delivery options;
- Several showcases for sales;
- Marketing tools;
- Communication with the buyer and administration.
Administrator functions include:
- Listing management;
- Seller approval;
- Content management;
- Analysis and reporting;
- Monetization management;
- Communication with sellers and buyers.
Alibaba’s winning strategies and unique qualities
The Chinese digital giant is often compared to the leader of the online market in the West — Amazon. But unlike Amazon, Alibaba isn’t a retailer — it doesn’t purchase or stock items, and logistics services are provided by third-party vendors. Alibaba coordinates all retail-related activities across a huge network of retailers, marketers, service providers, shipping firms, and producers.
Here are some features of such marketplaces:
- The first rule of success from Alibaba’s management perspective is the “Never give up” strategy. Its meaning lies in the fact that the product is protected by the manufacturer/seller to the bitter end;
- It is required to make decisions as quickly as possible, regardless of how many approvals there are at the moment. If there is a good idea that is relevant right now, then you should throw as much as possible, if not all, of your efforts into its implementation;
- For the most part, the AliExpress office team speaks two languages at once: English and Chinese. Additionally, the level of knowledge is very high, certain office employees are native speakers of these languages.
- The Chinese culture has led to the habit of local merchants to fill the workspace to the maximum, to the last pixel, so that every piece of space can be profitable;
- The support service works around the clock, seven days a week. No matter what time the client writes, they will answer him. And this approach is being implemented at absolutely all levels.
How to build a platform like Alibaba
Since you are building a marketplace, you need to make selling online as easy and affordable as possible, and Magento will help you with this. It is a powerful e-commerce CMS. Powerful means are strong and well-coordinated. The system is quite solidly built — it’s well-written and has virtually no bugs.
The convenient and understandable structure of Magento allows you to quickly make changes and manage a trading network with several sites in different languages. It provides full control over the appearance, content, and functionality of the online store.
Final Thoughts
Is building an e-commerce platform like Alibaba a dream or a reality? We hope that after reading this article, you will be able to answer this question with confidence. And also, do not forget that you do not need to completely copy the online marketplace, but rather stand out from your competitors by adding unique features that exceed the usual level of service. Think about your business model and marketing strategy to make your business profitable.
