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  • Essay / Alibaba Case Study - 983

    Some of the services offered are online payments, SEO solutions, transaction protection and authentication, instant messaging, member reputation and after-services. sales such as warranty programs. All these services have accelerated the company's achievements. Pricing is another strategy that has led to the success of Alibaba.com; The company has adopted a number of pricing strategies such as: product line pricing, penetration pricing and discounts. These pricing methods used are fair to business-to-business customers and have increased the company's sales. Small and large businesses have the option to use the free member service provided by Alibaba, which will allow them to post 50 products, but with 4th priority ranking and no product showcases. If the company wants to enjoy higher priority, unlimited product posting, product showcases of up to 25 products and many other benefits including personalized customer service, they can opt for basic plans , standard or premium starting at $699 per year. Alibaba in this case uses add-on pricing where they would offer basic services and have the option to add features to make the e-commerce experience more seamless. Below is the table that explains more about this