Abstract:
A nascent women’s apparel online store on Tmall, China's largest business-to-consumer retail platform operated by Alibaba Group, was just beginning to establish itself on the online market utilizing the tools and services provided by Tmall to develop and operate its business. Within four months after the business was launched, Tmall unexpectedly released a new policy which significantly increased the annual service fee and cash deposit for individual stores. This new policy, which was to come into effect in less than three months following the announcement, could render the business of small- and medium-sized e-commerce stores, such as the new women’s apparel start-up, on Tmall unprofitable. The management team of the fledgling clothing business had to reconsider whether to renew their contract with Tmall or transfer their store to one of the alternative online platforms, such as Alibaba Group's Taobao Marketplace, Tencent Group’s Shop.QQ or Amazon.com’s Amazon.cn.
Keywords:
E-marketplace, China, The Entrepreneur's Dilemma Alibaba Tencent and Amazon as e-Commerce Platforms Case Solution
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