How eSourcing Can Help Grow Your Business

Selena Yang Senior Manager, Alibaba.com

Open Sesame Philadelphia, PA Nov. 29th, 2006

Todays Topics
I. Corporate Overview II. What are Alibaba Open Sesame events? III. Market Overview IV. Site Tutorial V. Useful Tools and Resources

Corporate Overview

Alibaba.com International
Key Information

Worlds largest business-to-business marketplace for global trade, where you can search for business opportunities or post information to attract potential trade partners. 2.3 million members (SMEs) 200+ countries and territories 32 categories
Daily Web Statistics*

www.alibaba.com

5 million PVs 3,000 new members 550,000 unique visitors 1300 new companies listed 3,800+ new products listed

* Company estimate based on average for month of July 2006

Who is Alibaba.com?
Key Facts

Alibaba is Chinas leading e-

Established in 1999 Offices locations: Hangzhou, China (HQ),

Hong Kong, Europe (Geneva), USA (Silicon Valley), major cities in China

commerce company, operating the worlds largest online marketplaces for both international and domestic China trade, Taobao.com, Chinas largest C2C auction site, Alipay, Chinas largest online payment gateway, and Yahoo! China, Chinas leading search engine

2005 Revenue: approx $100mm+ Y-on-Y Growth: 100% # of Employees: 3,000+

Awards/Accolades
Recipient of Forbes Magazine Best of the Web for B2B websites 6 years in a row! #17 in World Worlds Top-Ranked Import and Export Site Worlds Top International Business and Trade Site

Harvard Business School Case Study A & B

Entrepreneur Magazine: Top Website for Entrepreneurs

What can be found on Alibaba.com?

From raw materials, products to business services

Product categories: 32
Other 22 Categories: 37%
Automobile Chemicals Construction & Real Estate Electronic Components & Supplies Energy Environment Excess Inventory Furniture & Furnishings Health & Beauty Home Appliances Home Supplies Lights & Lighting Luggage, Bags & Cases Office Supplies Packaging & Paper Printing & Publishing Security & Protection Sports & Entertainment Telecommunications Timepieces, Jewelry & Eyewear Toys Transportation

Top 10 Categories
Business Service 9% Agriculture 8%

Electrical Equipment & Supplies 7% Apparel & Fashion 7%

Industrial Supplies 6% Gifts & Crafts 4% Textile & Leather 6% Minerals, metals & Computer Hardware& Materials Software Food & Beverage 5% 6% 5%

Membership
Suppliers: 1,195,000
Free suppliers Paid suppliers Gold Suppliers: Paid suppliers in mainland China TrustPass members: Paid suppliers outside mainland China
Buyers 49% Suppliers 51%

Buyers: 1,140,000

* Company estimate based on month of July 2006

Global buyer distribution

Alibaba.coms buyer network spans all corners of the world
Africa 9% North America 23% Europe 18% India 8% China 12%

S.E. Asia 7%

Australia 3%

Other 20%

The Alibaba Network

Buyer
Search products Contact Supplier Post products Reach international buyers

Supplier

Alibaba.com

My Alibaba

Manage Account Information Check messages Buying and selling tools Online Forum Open Sesame Events Trade Essentials Tradeshow Channel Trade Alert TradeManager

Community

Tools & Resources

What are Alibaba Open Sesame Events?

Alibaba Open Sesame Event in Hangzhou

Topic: How Online Sourcing Can Help Improve Your Business Date: June 23rd, 2006 Location: Hangzhou, China

Icebreaker Games

Alibaba staff mingling with international buyers

Alibaba Open Sesame Event in Milan

Topic: E-sourcing: How the Internet Can Help Your Business Grow Date: July 13th, 2006 Location: Milan, Italy Charter Member of Alibaba since 1999

Best Travelled an Alibaba shows her dedication by travelling long and far to join the event

Market Overview

E-Marketplaces: Circa 2000 approach

Source: California Management Review

E-Marketplaces: The Alibaba Approach

Match.com P2P

Romantic Restaurants

+
Alibaba.com Tradeshows

B2B

Traditional Sourcing Work Flow

Search/ Discovery Evaluate Negotiate Transact

Average sourcing cycle: 3.3 4.2 months

52% of time spent searching

for/identifying appropriate suppliers

20% of time spent on

screening/sorting proposals

18% of time spent on RFQ

development/ RFQ response

10% of time spent on contract

negotiations

Traditional Sources of Supplier Information

Referral (colleagues, associates) Trade shows Industry magazines, trade journals

Source: The Aberdeen Group

Industry associations Trade directories Existing suppliers

Alibaba Tutorial

Alibaba Tutorial
Case study: sourcing MP3 Players

Step 1 - Search & Browse

Find products using Search or Browse Function

Step 2 - Sub-categories
Find products from the sub-categories

Step 3 - Search Results

Refine search results by related search, date & region

Step 3 - Search Results

Refine search results by supplier type

Step 4 - Advanced Search

Use advanced search to find your perfect match

Step 5 Gold Supplier & Trust Pass

What are Gold Suppliers and Trust Pass Members?
"Gold Suppliers" are pre-qualified suppliers from China. When you select China (mainland), Taiwan or Hong Kong, this filter will appear in your refined search.

TrustPass members have been authenticated and verified by a third-party credit-reporting agency.

Step 6 - Product & Company Info

Review product and company information

Step 6 Product & Company Info

Review suppliers TrustPass information

Step 6 Product & Company Info

Virtual tour of the company

Step 7 - Contact suppliers

Contact suppliers instantly

Step 8 - Inquiry
Fill in the form and send an inquiry to the supplier

Step 8 - Inquiry
Inquiry form preview

Step 9 - TradeManager
Talk to the suppliers in real time

Step 10 - Post Buying Leads

Post a buying lead if you cant find the product you want

Step 10 - Post Buying Leads

Preview your buying lead before publishing

Useful Tools and Resources

My Alibaba
Manage your account information, messages and access buying tools here

Trade Alert
Trade Alert delivers the latest buyer and seller information directly to you

TradeManager

TradeManager
Instant messaging tool for trade professionals

TradeManager

Send documents and files without any size limit.

Manage your trade record

Conference in real time

Resources Channel
Your gateway to exploring online resources on Alibaba.com

Trade Forum
Learn and share your trade experiences with other members

Industry Forum
In-depth industry specific discussions

Trade Show Channel

Upcoming Featured Trade Shows available in this channel

Articles
Articles on key topics in trade

Country Profiles
Free access to 1,100 pages of information on 82 countries

User Testimonials

Alibaba Member

DOROTHY PETERSON

Owner The Way, event planning services

Contact Information
Selena Yang
Senior Manager, Intl Marketing & Business Development

selenayang@alibaba-inc.com David Wang

Manager, Intl Marketing & Business Development

davidwang@alibaba-inc.com Wendy Wong

Manager, Intl Marketing & Business Development

wendywong@alibaba-inc.com

Thank You!

Global trade starts here.