The Expansion Research On Taobao's Profit Model

With the development of shopping online and the increasing awareness of the customers, the retail volume of C to C has a rapid growth which maintained at 100% annual growth rate, and accounted for over 90% of total transaction online. Taobao whose transactions exceeded 200 billion in 2009, accounted for more than 80% of the market share of C to C. Though it has obtained the leadership, Taobao is still not achieved substantial profit, and the new model is still in the process of exploration. The profit model is the integration of the internal and external resource of the enterprise, and hope for fully playing the advantages, thus the exploration of profit model of Taobao is making full use of current resource.In this paper, we generalized the profitability of the current model of the internet, the credit mechanism of C to C at first, then generalized the profitability of Taobao included of advertising revenue, value-added service and the income of B to C. Next, compared the profit model between Taobao and the current mainstream, and pointed out two gaps of Taobao in the wireless value-added services and the game operation, then analysis of the feasibility of these two businesses. At last, we showed the profit model strategy of Taobao from the source of profits, new techniques and the improvement of the platform service. Analysised the potential profits that can be found and the safeguards needed to be taken. In the conclusion we pointed out the direction of the future development of Taobao which can provides some insights for the exploration of profit model of Taobao.