Alibaba Hits 1 Trillion RMB In Sales, Becomes Largest E-Commerce Company In The World
Alibaba has sold one trillion RMB worth of goods in 2012. That is the equivalent of $157 billion in gross merchandise volume (GMV). This means that Alibaba has surpassed U.S. e-commerce companies Amazon.com and eBay combined.
Alibaba chairman Jack Ma said that only two companies have recorded this size of annual transaction volumes at this level, which are Wal-Mart and Alibaba. Alibaba even generated $3 billion in sales on a single day earlier this year.
Alibaba owns companies like Tmall and Taobao Marketplace. Taobao is similar to eBay and Tmall manages e-commerce operations for thousands of companies in China. Alibaba maintains payments through their own processor called Alipay. Alipay has the credit card information of over 700 million registered users.
“It’s very likely that next year, our transaction volume will be bigger than all the American e-commerce companies combined,” stated Alibaba CEO Jack Ma.
In 2012, Alibaba accounted for over 60% of all packages delivered in China, which amounts to around 12 million packages per day. In 2011, Alibaba accounted for an average of 8 million packages per day.
Alibaba measures the GMV, which takes into account all products that are sold by clients using the company’s e-commerce infrastructure for their own sales. Alibaba also includes products that sell on the Taobao marketplace.
Alibaba makes a small percentage from each of these transactions. Alibaba is predicting three trillion RMB of total volume of sales through their various websites in 2017, which would be worth around $471 billion and it would surpass Wal-Mart’s current sales of $444 billion. Amazon.com’s annual sales volumes are in the $50-$60 billion range.
Yahoo! owns around 23% of Alibaba and they sold half of their shares in the company for $7.6 billion earlier this year.