1.0 ALIEXPRESS OVERVIEW

In 2009, AliExpress Limited was founded as a subsidiary of Alibaba Limited in San Mateo, California. AliExpress.com is a wholesale platform from Alibaba.com offering quality products at factory price (Company Overview of AliExpress Ltd, 2017). In April 2010, AliExpress Group was launched by Alibaba Group as a business to consumers (B2C) platform to give buyers and sellers access in anytime and anywhere. AliExpress is a B2C ecommerce platform which allows an individuals or companies to sell their products directly to overseas consumers. Besides that, the consumers in mainland China restricted to make purchase from the platform but allow to open stores in this platform. As the product is sell directly to overseas, AliExpress had provided multi-languages sites. For instance, Russian, Portuguese, Spanish, French, Korean, Thai and so on (SLATER, 2014). The prices and shipping costs of all products on AliExpress are charge in United States Dollar (USD) (Our Suggestion, n.d.). AliExpress was targeting ship to more than 200 countries and regions worldwide to increase their market share. Today, AliExpress have over 20 million Chinese exporters and manufacturers supplied more than 100 million product in the platforms.

As internet usage continues to growth, more and more consumers prefer to online shopping to get a better price because on this platform, users can find great variety of products offered by thousands of sellers. Moreover, consumer can easier to purchase the goods by searching the interested product with a click. This has make a drastic increase in international ecommerce as people look outside their own country’s border for that bargain (SLATER, 2014). Buyer can order as few as one item and pay safely using AliExpress Buyer Protection service (AliExpress Customer Service and Support, n.d.).

Moreover, AliExpress had prepared a set of guarantees for the safety purpose of all the buyer transaction on the platforms, also known as Buyer Protection. AliExpress Buyer Protection comes with a slogan “Protecting Your Purchase from Click to Delivery”. It’s also a way of AliExpress to increase the confidence of the buyers to shop on the platform. AliExpress was provided guarantees that ensure the buyers receive the item on time as described (Buyer Protection, n.d.). Therefore, the Buyer Protection is free for buyer. Once the buyers have confirmed received the item they ordered, the Buyer Protection is still effective for another 15 days. The amount of transaction will only be transferred to the seller once the buyers have confirmed receiving order, or when the Buyer Protection has ended (New User Guide, n.d.). For the Buyer Protection, if the buyer’s order does not reach within the delivery period promised by the seller, the buyers who shops on AliExpress can also receive full refund guarantees or the item you’re ordered is obviously different from the seller’s product description can also get full or partial refund. However, some of the sellers also offer extra guarantees for their products to increase consumer’s confidence which is provide full refund if the item that promise to be genuine is found to be fake (Buyer Protection, n.d.).

Lastly, AliExpress also have provide the feedback and star rating system to give the buyers measure the products quality or services provided by the seller. Therefore, Buyers can reviews the product ratings and feedback to get extra information about the product itself. The star ratings indicate the level of member satisfaction after completed transactions (How is feedback measured, n.d.). In order to increase the star ratings to increase the sales, most of the seller will keep improve their product quality or giving after sales services. Thus, if buyers have any enquiry about the product, they may contact with the seller directly through chat or send a message at the product detail page or shop.

2.1 THE ALIEXPRESS REGISTRATION PROCESS.

STEP 1:

First, we key in the AliExpress website (www.aliexpress.com) and click the official site.

STEP 2:

After that, it will direct us to the AliExpress homepage. We can select “sign in or join” button on my AliExpress (shown in red colour circle) at the right corner. There will be two option either “Sign In” or “Join Free” when we point at the button. Click “Sign In” if the user have an exist account, otherwise click “Join Free” to register as a new user. So, we click the “Join Free” to create a new account.

STEP 3:

There are two alternative ways to sign up as a new user, either “Sign Up using Facebook” or “Sign Up for an account using your email address” (shown in red colour circle). As we choose to “Sign Up an account using email address”, we have to fill in the detail as required such as email address, name of the user, password and the CAPTCHA code (Shown in the right side of the images).

STEP 4:

After fill up the detail required, we have to click “View Agreement” before tick the agree box (shown in red colour circle). 

STEP 5:

After we click “View Agreement”, it will bring us to the free membership agreement and we need to read through it before create an account.

STEP 6: 

Tick “agree box” as we had agree with the term and condition stated in the free membership Agreement. Thus, we click the “Create Your Account” button to create an AliExpress account. 

STEP 7: 

After we click “Create Your Account” button, we will be inform by AliExpress that we have successfully join as AliExpress member. We can double confirm whether we successfully join as a member by clicking the blue colour words “Check it now!”(Shown in red colour circle) and it will direct us to our email. 

STEP 8: 

After we click the “Check it now!” button, it will direct us to the email. We have to click the “Confirm My Email Address” to easily track orders, receive promotional emails and recover our account details. 

STEP 9: 

After that, we will be inform that our email has been confirmed and account has been made.

2.2 THE UNIQUE PRODUCT WE CHOOSE IN ALIEXPRESS AND THE NEGOTIATION STEP WITH SELLERS.

  The unique product that had been chosen by our company is an electronic gadget which is solar power bank. Shenzhen Zerospace Technology Ltd is the supplier of the solar power bank. Mr. Zero Space are the seller of the solar power bank and we had done the negotiation with the seller.

The following images refer to the solar power bank with its details and specification:

The homepage of the Shenzhen Zerospace Technology Ltd:

The following refer to the negotiation between our company and Mr. Zero Space:

STEP 1:

We contact the seller and requested to get the solar power bank details. After the seller replied, we questioned the solar power bank colour they have and enquiry for the catalogue but the seller didn’t provide us catalogue.

STEP 2:

We requested for the best price that he able to offer if we decided to purchase around 80 units of solar power bank. The best price he offered are wholesale price USD37.69 per unit with free shipping fee.

STEP 3:

We questioned for the product warranty. Also, we asked the time needed for the solar power bank to be delivered once the payment had been made. 

STEP 4:

We asked what circumstances can be considered as warranty and who should I contact. Thus, we also asked whether they have a physical store.

STEP 5:

We questioned the seller where their physical store are located and requested for wholesale price list or the amount to purchase to get a lower prices as possible. We also asked where the product are made. 

STEP 6:

We asked what the method of delivery they use and the custom or government tax. The result is they are using DHL or FedEx to deliver the product and if the product are more than USD100 then there will be charge on tax. However, the seller will write a low value as we wanted but we need go to the custom clearance the tax.

STEP 7: 

We questioned the seller whether the shipment are included deliver until our location or Malaysia custom only. After all, the product will deliver till our location and we may need to pay tax fee if Malaysia custom requested.

2.3 HOW ZEROSPACE USING ALIEXPRESS TO BOOST SALES AND MARKETING, AND THE OBSTACLE FACED IN THE COURSE OF ACTION

 Sales can be defined as a transaction between two parties where the buyer receives goods or services in exchange for money (Sales , n.d.). However, marketing can be defined as a programs businesses use to reach and persuade customers (GORDON, n.d.). Nowadays, a company success are depend on the company’s sales and marketing effort. This is because sales and marketing can increase the company revenue.

There are three example Shenzhen Zerospace Technology Ltd use AliExpress to boost their sales and marketing. For example:

EXAMPLE 1: PROVIDE PROMOTION ON ALIEXPRESS.

A promotion can boost the company’s sales and marketing. Zerospace provide percentage based discount, coupon and free shipping for their customers. For percentage based discount they offer 10%, 30% or 35% off for certain product they sell (as shown at below).

For coupon, they will give away USD2.00 coupon for AliExpress user to attract them buy their products. Also, free shipping are provided for their customer with specific courier (as shown at below). By providing the promotion, it can attract more customers to buy their products. 

EXAMPLE 2: BOOST THROUGH FEEDBACK RATING SYSTEM.

Zerospace use the AliExpress platform to boost their sales and marketing through feedback rating system. By using the feedback rating systems, buyers able to judge the seller’s overall performance. So, if the rating are high or there are positive feedback it will help give confidence to the buyers and proving that the seller is trustable. This can help to boost the seller’s sales and marketing directly. 

From the seller summary, its show that Zerospace gained overall 95.6% of positive feedback (as shown at above). Apart from that, it involves three criteria which are the accuracy of product’s description, the seller’s communication level and the shipment speed with a measurement of one to five-star scale on each criteria (Help Center, 2016). For example, the detailed seller ratings showed that Zerospace gained 4.7 star on the items as described parts which is 11.90% higher than other sellers. These showed that the product’s description was accurate and the buyers were satisfied with the product received. So, it can attract others buyers to buy with them.

EXAMPLE 3: BOOST THROUGH CUSTOMER SERVICE.

Another way of Zerospace using AliExpress to boost their sales and marketing are through customer service. On AliExpress, the platform do provide the contact seller service (as shown at above) which the buyers can contact the seller directly. If the buyer have any doubts, they can ask the seller directly. For example, buyers can ask for special discount personally or detail of the product or the products warranty. So, it can create an interaction between the seller and buyers. 

However, the attitude of seller can decide the willingness of buyer to purchase goods from him. The friendliness of the seller also can boost the sales and marketing at the same time. If the sellers are friendlier then a negotiation are easier to complete. For example, Zerospace had showed patience while communicate with us and replied us politely. He also shows his friendliness through sending emoji.

There are 3 obstacle faced by Shenzhen Zerospace in the course of action above:

OBSTACLE FOR EXAMPLE 1:

AliExpress is a platform with many seller and many buyers. When Zerospace offer promotion at the platforms, there are others seller offer promotion at the same time. For example, BlitzWolfs also offer promotion at the same time such as free shipping, coupon and percentage based discount (as shown at below). So, the seller’s promotion effectiveness will reduce.

Thus, it will increase the buyer sensitive toward the price directly. In the long term, buyers will only buy the product with the seller when there have special offer or promotion. Hence, it will cause the company gain less profit and pampered the buyer if sellers always offer promotion for buyers.

OBSTACLE FOR EXAMPLE 2:

By using the feedback rating systems, buyers able to judge the seller’s overall performance at AliExpress. A good rating of a seller will attract more customer to buy with the seller. However, if most of the customer leave a negative feedback, it would lead to negative impact on the seller’s sales. Thus, negative feedbacks will affect the company images too. There also have some buyers purposely give negative feedbacks for gain advantage from sellers. So, buyers will have less confidence toward the specific seller and they will switch to other sellers.

OBSTACLE FOR EXAMPLE 3:

“Contact seller” are a way for giving the buyers to contact the sellers in one-to-one conversation. However, it is a time consuming for the sellers to complete a negotiation with a buyers. Also, there are time difference between the buyers and sellers because the sellers are from China and the buyers are from the different country. So, seller may reply the buyers more slow and buyer cannot get reply from seller on the spot. For example, when we negotiate with the seller, sometime we only can get 1 reply in one days so, it needs more time for us to complete the negotiation. Thus, it will affect the company image by their low replied rate. When seller negotiate with buyer, there will be misunderstanding such as seller may give wrong information to the buyers and unable to solve customer’s problem. So, company need hire employee which expertise with multi-language due to conversation with different country buyer.

2.4 THE AWARENESS OF ZEROSPACE IN VIRTUAL WORLD.

  Zerospace Company start up the business in AliExpress.com platform as a seller. It used click and mortar stores e-commerce method to do it business, which mean the organizations conduct their business with physical channel and online channel. It buyer can easier go to shopping through online and the store to save their time for searching products. Since it subscribe as a seller in Oct 2010, it rating rate within 6 year, the items sell described, communication and shipping speed all are 4.7 above average out of 5.0. Furthermore, they got 43798 feedbacks and 95.6% were positive feedback. So it is trustful by customers purchase it products when compare to it similar sellers.

  Zerospace provided an e-catalog in AliExpress webpage when customers click into visit it store. The webpage of e-catalog are well organized and divided by different segments of category, such as: Store home, Product, Sale Items, Top Selling, New Arrivals, Feedback, and Contact Details.

Product: It have provided a lot of categories for the different product such as US UK Stock Product, 2016 mini Sport Action, Phone Battery & Charger, 2016 New Arrival, Consumer Electronic, Smartphone Accessories, Phone Case & Phone Bag, Computer & Networking, Ourdoor & Sports Goods, Car & Motorcycles, and others.

Sale items: It given a select list for user choose the products with finish the discount. All product are discount the price with clearly.

Top selling: It mention out the popular items sold & most discount item in the store.

New arrivals: It updated webpage what products are newly added in the store based on each categories.

Feedback: Normally is a written review of products and services by consumers which purchased product from the company. Furthermore, the feedback from customer will affect the seller image.

Contact details: It is the information about the seller. For example, the contact person, company name, address and website.

For example, when customer click in sales item or the top selling, it will have a select list for customer sort out their expectation products in orders, newest, pricing to specific the product and narrow down the products search. So as a customer, they will be easier search for the products which meet their satisfaction. Furthermore, it offers their consumer purchase for small quantity of products, with minimum one quantity. 

  On the other hand, Zerospace also have doing promotion for it products, by giving discount and coupon to attract consumer willing to buy more and hold their loyalty towards the company. Besides, customers click their favorite item, in the product page, it provide a full description of the quantity; which country to ship; number of shipping day; product details of unit types, sizes, and weight; 20 types of online payment methods; and other related product. Then, user can choose: buy now (direct to payment page), add to shopping cart, or put in wish list. After add in cart, they can proceed to continue shopping or check out to do their payment. When consumer decided to buy the product, for making payment must fill up the delivery options and read terms and conditions to ensure the buyer protection which is full refund or partial refund. Moreover, the company used the world popular secure payment methods for consumer doing their online transaction. Simultaneously, consumer can shop with confidence because every delivery and orders provides buyer protection. 

  Since the company provides 7 multi-language sites, it can ship over many countries and regions which wider up their market place to worldwide concept. Zerospace had customer service center, when consumer faced any problem about products or services can get help from the help center, but within time period which seller available. Service center is importance towards company be more efficiency when work immediacy helps buyer solve their problems.

  In addition, customers can follow Zerospace store by “Add to my favorite store” at the left side of website, it is a way for customers stay connected with the company and get latest updated information. These used to protect the seller and shows up for customers to further understand clearly about the return products and delivery process.

3.0 CONCLUSION

  In a conclusion, we can conclude the business model e-marketplace has become very popular. These new business models have attempted a variety of market and ownership strategies. The potential advantages to be gained by joining an e-marketplace will between company and businesses, and indeed between buyers and suppliers.

  The first and foremost, the representative from Shenzhen Zerospace Technology Ltd that is in charge to communicate with us is Mr. Zero Space. Mr. Zero Space shows us utmost patience when he is communicating with us, and make it surprise to us is Shenzhen Zerospace Technology Ltd is 24 hours online. E-marketplace can help to solve the time problem, it is because time constraints and problem with different office hours for international trade are removed as it is possible to operate on a round-the-clock basis. For the e-marketplace it is greater opportunities for suppliers and buyers to establish new trading partnership, either within their supply chain or across supply chains. After our negotiation with the Mr. Zero space, if successful to our negotiation, then we will maybe can become partner to continue our business. However, being part of an established e-marketplace provides a level of trust between suppliers and buyer. In this process for negotiation, we can saw the Mr. Zero Space very patience when he is communicating with us. He is always be ready to answer our question bit-by-bit unless we are clear with the problem, and very surprise to us is when us negotiation to Mr. Zero Space, he always replies our massage very promptly and he is very polite in answering our question.

  Throughout our conversation, he gives us a very good image, and we feel very safe to deal with the company. When a company gives a good image towards their customer, it is very easy for the company to earn trust from the customers. Then the company sure can earn more profit to their business. On the other hand, Shenzhen Zerospace Technology Ltd will updates information on price and availability makes it easier to secure the best deal for the buyer.

  Last but not least, the decision of Shenzhen Zerospace Technology Ltd to set up a virtual store at AliExpress is proved to be a successful decision as we know that AliExpress is one of the largest e-commerce platforms under the group of Alibaba in this world. Hence, there will be lots of customers to view the website every day and subsequently there will be customers to get interested in the company’s product.

REFERENCE

AliExpress Customer Service and Support. (n.d.). Retrieved from AliExpress: https://www.aliexpress.com/help/contactus.htm?spm=2114.33020108.14.8.QCKczx 

Buyer Protection. (n.d.). Retrieved from AliExpress: http://sale.aliexpress.com/buyerprotection-en.htm 

Company Overview of AliExpress Ltd. (2017). Retrieved from Bloomberg: http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=112314497 

Gordon, K. T. (n.d.). Defining Sales and Marketing. Retrieved from Entrepreneur: https://www.entrepreneur.com/article/46086 

How is feedback measured. (n.d.). Retrieved from AliExpress: http://activities.aliexpress.com/adcms/help-aliexpress-com/profile_metrics.php 

New User Guide. (n.d.). Retrieved from AliExpress: https://www.aliexpress.com/how-to-buy?spm=2114.33020108.14.7.QCKczx 

Our Suggestion. (n.d.). Retrieved from AliExpress: https://www.aliexpress.com/help/ajax/helpThemeAjaxService.htm?crmId=11103736 

Sales. (n.d.). Retrieved from Investopedia: http://www.investopedia.com/terms/s/sale.asp 

SLATER, M. (2014, December 18). What is Aliexpress? Retrieved from China Checkup: https://www.chinacheckup.com/blogs/articles/what-is-aliexpress