Discovering Chinese “treasury” or how to resell from Taobao.com
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Discovering Chinese “treasury” or how to resell from Taobao.com

Moscow : Russia | Jul 11, 2012 at 4:22 AM PDT
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Taobao-hunter (Taobao Agent)

The owners of the largest trading platform Taobao.com declare: "There are no treasures that we cannot find, and there is no such treasure, we cannot sell". Some businessmen humbly adding: "... and resell". Sales of Taobao goods every year are becoming more and more popular among the e-commerce businessmen. It’s really profitable: the percentage of taobao agent, even in conjunction with the cost of delivery of the goods, does not affect the attractiveness of Chinese prices. They are still much cheaper than in any country. And the main advantage is choice: you can buy on Taobao almost everything. It’s a real dream of shopaholic and an excellent idea for those who like bargains.

So, we’re taking the low prices, adding huge choice and geting a colossal demand for services that allow to make transactions on Taobao. There is one drawback Chinese "treasury" - it can be used only by residents of the China. Foreigners around the world have to use the services of intermediaries. And it’s very good for these intermediaries (taobao agents): well-organized agent’s work generate significant profit.

To make business with Taobao you need to solve organization problems (logistics, stocks, delivery) and create a site to show taobao goods and your services. Some years ago it was a difficult task – connection to taobao api, huge investments in IT structure, etc. Now there is an alternative way – complete IT solutions and projects that combine IT and business infrastructure (for example, Opentao, or Tradehub System).

The newcomers are services which provide install-and-use online Taobao goods stores. The connection to taobao api and transfer of the content from Taobao.com occurs via their systems. They also can receive and maintain orders and integrate with payment aggregators. An example of such service is IT product of Opentao company (http://opentao.net). The creators dubbed it simply "Opentao Box". The service appeared some month ago, but there’s already increased attention to it from taobao agents and owners of large taobao stores. The first have seen in it new opportunities for business, the second - looking at with caution.

Opentao Box is “packed” ready-to use online shop, which works on the Opentao Platform. This system provides content from Taobao to the showcase and catalog of the store. Moreover, the shop "communicates" with the buyer in almost any language you need (you can choose many language versions). Since the solution is typical, online store is constructed in some hours, almost like a shopping pavilion made ​​from plastic. It’s a very attractive prospect for taobao agents: you can subtract the cost of connection to Taobao API, eliminate the time to develop the site, add the showcase, catalog, searching engine and user-friendly design and start to work at once. However, if you are a beginner in this business and don’t have relationships in China and an established scheme of purchase taobao products, the site will not bring you money...

However, the same Opentao solves this problem also. The company announced a Tradehub System project. Taking part in it and the agent gets online store, tested logistics and predefined payment systems. "To resell the goods from Taobao, all you need is desire to do it" - assure representatives of the company. While the system Treydhab running in test mode, but requests to participate are considered.

As you can see, there are some interesting and effective approaches to the Chinese "treasury". In any case, we are witnessing a new stage of development of the sector of electronic commerce. And there’s no doubt that this development will be rapid and interesting.

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Taobao has announced an up to ten-fold increase in service fees from next year
Taobao has announced an up to ten-fold increase in service fees from next year
Opentao is based in Yerevan, Yerevan, Armenia, and is a Stringer for Allvoices.
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