Alibaba Website: Benefits and Costs of Using Essay

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Table of Contents

Introduction
Benefits and Cost of Using Sites like Alibaba.com
Advice to New Companies
Reference

Introduction

The internet has become a key element for modern-day businesses in regards to reaching customers, promoting products, and optimizing profits. An analysis of the benefits and costs of using websites such as Alibaba.com illustrates the relevant considerations for new companies in opening and developing an export plan.

Benefits and Cost of Using Sites like Alibaba.com

Benefits	Costs
Websites such as Alibaba.com provide new companies with the resources necessary to eliminate the hurdles of traditional advertisement strategies and gives a new company an instant global presence. The websites connect new companies with an infinitesimal number of potential consumers, distributors, and sales representatives who have access to descriptions, pictures, and samples of products, which provide the information required to learn about a company and its products and services.	Websites such as Alibaba.com face the threat of internet fraud and cybercrimes, which are likely to have detrimental effects on the reputation of a business. Companies, especially those with money-back guarantee policies, face huge losses in the case of interception of payments, credit card details, and bank details.
Websites such as Alibaba.com allow flexibility in operations, which enable businesses to remain open for 24 hours a day. Creating a virtual store eliminates losses due to the restrictions of working hours evident in the operation of physical stores.	Virtual stores and retail shops promote impersonal correspondence between clients and businesses. Websites such as Alibaba.com have eliminated contact at the personal level, which is detrimental to the guarantee of satisfaction when dealing with humans.
New companies require only a fraction of the budget required to open a physical outlet or store to set up an internet store. Entrepreneurs can exploit cheap online advertising services and tools to expand the targeted population.	New companies are likely to encounter low sales due to the suspicion of unscrupulous dealers posing as legit businesspersons. Clients need indicators such as the rating of a company by past clients to determine the quality of services offered by the company.

Advice to New Companies

Using websites such as Alibaba.com gives new companies a platform to compete on the global scene and generate huge profits that would otherwise be unattainable via the traditional approaches of doing business. New companies should use the World Wide Web to gain a level playing field to compete with other established companies in the same line of business. New companies should invest in systems and tools that enhance the security of their payment gateways. New companies should prioritize the most trusted payment systems such as PayPal and MasterCard to enhance clients’ confidence in dealing with the companies.

Clients are hesitant to use unknown payment methods and are likely to desist from dealing with businesspersons using such methods. New companies should address the challenge of impersonal correspondence with clients by investing in customer support personnel who can address clients’ concerns in the most satisfactory manner. Investing in systems such as Live Chat, VoIP, and dedicated telephone lines are crucial to new companies in ensuring the personalization of feedback when addressing clients’ concerns (Daniels, Radebaugh, & Sullivan, 2012). Money-back guarantee policies on undelivered products or products mismatching the client’s description are essential to the enhancement of a new company’s reputation and reliability. New companies need to evaluate the costs of using distributors or selling their products directly to consumers before entering the export market.

Reference

Daniels, J. D., Radebaugh, L. H., & Sullivan, D. (2012). International business: environments and operations (14th ed.). New York: Pearson Education.

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