Good News for Amazon.cn Buyers
Posted 10-07-2008 at 04:22 AM by Kerry Finch
The Internet may be the battleground for competitors in business but its players have learned an important lesson to stay afloat in the electronic world: cooperation. Such can be said of China e-tail rivals, Amazon.cn and Taobao.com. Only recently, Amazon entered into an arrangement with Alipay, a Taobao sister company, for the use of Alipay’s online payment system in the Amazon website.
The deal is an acknowledgement of the wide acceptance of Alipay’s facilities among mainland China’s net consumers. Prior to the arrangement with Alipay, Amazon.cn allowed payment modes such as cash-on-delivery, credit and debit card payments, bank transfer and postal payment.
Both Alipay and Taobao are owned by Alibaba.com. It is said that the online payment system provided by Alipay was crucial to the fast growth of Taobao. The success of Alipay has gotten Alibaba into thinking of marketing Alipay as an independent third-party payment system for business-to-consumer (B2C) sites. Chinese net users are known to be reluctant in using credit cards for their online purchases and the lack of an acceptable online payment method was said to have slowed down most of China E-commerce. Alipay may just be the answer to the problem.
The deal is an acknowledgement of the wide acceptance of Alipay’s facilities among mainland China’s net consumers. Prior to the arrangement with Alipay, Amazon.cn allowed payment modes such as cash-on-delivery, credit and debit card payments, bank transfer and postal payment.
Both Alipay and Taobao are owned by Alibaba.com. It is said that the online payment system provided by Alipay was crucial to the fast growth of Taobao. The success of Alipay has gotten Alibaba into thinking of marketing Alipay as an independent third-party payment system for business-to-consumer (B2C) sites. Chinese net users are known to be reluctant in using credit cards for their online purchases and the lack of an acceptable online payment method was said to have slowed down most of China E-commerce. Alipay may just be the answer to the problem.
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