Alibaba, as already discussed is the largest E-retailer in the world and it is generating huge volumes of profits year after year. The company earned around $248 billion in the year 2013 which is higher than the revenues of Amazon and E bay which are the most known online sellers. This company is successful because of many reasons. Alibaba is enjoying its profits while most of the retailers are still fighting to reach breakeven point. It has its presence in the form of C2C, B2C and B2B markets and businesses (The world’s greatest bazaar; Alibaba, 2013).
The company has been successful due to many reasons like because of its unique business model in which it serves small to large enterprises and do not lose any opportunity to earn business and profits. Italso provides free access to start the business on the sites which cultivated habit of online business in the businessmen and consumers. It earns mainly from advertisements i.e. 57% of its total revenue. Its main motive is to provide satisfaction to its customers through customer support system. It hires capable employees who minimizes the mistakes and increases the chances of growth and they stick to their main objectives and goals which made Alibaba a successful venture.
In the financial year ending March 31, 2016, Alibaba recorded profits of 71.29 billion Yuan which is approximately 11.1 billion US dollars (Strugatz, 2014).
Profits of Alibaba- Alibaba earned 15.7 $US billion in the FY 2016 and net profit profits of around 11.11 US$ billion. It had 4.5 US$ billions of operating profits which included the expenses of product development, sales and marketing and other expenses. This can be clearly understood from the above given chart.
The below given chart shows the bifurcation of the revenue earned by Alibaba. It shows different sources like whole sale, retail. Domestic and international business and the revenue earned through them. The largest amount of revenue earned by the company i.e. 79.1% of the total revenue comes from Domestic Retail business (Woods, 2016).