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What is the current traction of 1688.com?
Hello! Thanks for your question about the current traction of 1688.com.
The short version is that there are over 100,000 active seller accounts on 1688.com, representing over 140 markets, and an estimated 729,000 retail merchant buyers. After searching extensively, I noted that while merchandise values aren't released by 1688.com's parent company Alibaba Group Holding, thus data on average transaction is not available, one source estimates average daily sales of $60 million USD, and the company reported a revenue of $659.33 million in 2016, a 35% increase from the previous year, growth due to decreased regulations on importing international goods in China.
Similarly, after searching extensively, I also noted there no publicly available data on the top selling categories on 1688, also due to lack of publicly released sale information. However, it is noted that overall the type of goods sold on the site has expanded in recent years to include a more varied product base overall.
The most useful resources that helped in this research are articles/reports from Digital Commerce 360 and China Scoop.
Below you will find a deep dive of my findings.
METHODOLOGY
In order to answer your question, I compiled data from annual and financial reports from parent company Alibaba Group Holding Ltd, industry reports on B2B e-commerce, press releases, and other trusted media sources. Where no direct data was available, I found secondary sources as well as providing related data.
OVERVIEW
1688.com was launched in 1999 alongside e-commerce giant Alibaba.com. However the website has gained the most traction in recent years, as it serves as Alibaba’s business to business platform for importing products to the Chinese market from international sellers, and regulations have recently shifted to support foreign importing for Chinese small to medium businesses. The platform is primarily designed to serve Chinese SMEs who sell domestically by allowing them to easily source products internationally for retail sale.
NUMBER OF BUYERS & SELLERS
While there is no publicly released data on how many overall sellers currently use 1688.com, I was able to find a source that noted that 500,000 suppliers from 140 markets had used the platform by 2013. However this number doesn't account for sellers who have registered accounts but discontinued selling and was the total since the website launched.
To provide a more accurate picture of how many buyers there are on 1688.com, I found a current source that suggested an estimated 100,000 active sellers are currently registered on the platform. This is likely a more accurate representation of how many people use it regularly, as it excludes inactive seller accounts. The most recent report on number of buyers that use the site showed that they have a total of approximately 729,000 active retail merchant buyers.
REVENUE & TRANSACTION DATA
In 2016, 1688 reported $659.33 million in revenue, which represented a 35% increase from the previous year, in which revenue was $492.89 million. Between 2015 and 2014, the company also grew dramatically in revenue, with a 33.7% increase.
While no data is released on size per transaction, and another source noted that Alibaba Holding doesn't release their gross merchandise value or sales figures, so transaction size would be impossible to estimate, I was able to find one source that estimated $60 million in sales per day on the website.
OTHER HELPFUL FINDINGS
While I could not find a direct answer to your question, given there is no data released on merchandise sales and values, I was able to gather some information about this topic, which I think will be helpful for your project.
It may be relevant for you to know that one of the products that has seen the most publicity for being listed on 1688.com are branded items, as due to the lack of regulation on counterfeits, companies have faced challenges with the platform in reliably being able to verify whether products are genuine. The site has even been mentioned to be a reliable source of bargain fake products where some vendors willingly source low cost counterfeit items.
In addition, due to the B2B nature of the platform, most items are bought in larger bulk lots than partner site Alibaba, which sells individual products and small lots, and provides more B2C options than 1688. Stores set up on 1688's platform are provided a sub-domain for listing their items, and items are paid for via Alibaba's online payment platform Alipay, and then fulfilled via Alibaba's delivery network which uses a consignment model that charges a per sale fee as well as an annual listing fee of 3,800 RMB per year ($550USD).
Customer service, marketing, store design, and promotions are not provided, and must be taken care of by the vendor. Products must be registered in China, which makes selling some items, such as imported cosmetics, more challenging as they must pass government inspection, and generally perishable goods aren't sold on the platform either. It is noted that as the use of 1688.com has increased, the overall range of type of goods sold on the platform has increased to meet a broader demand.
POSSIBLE CONTINUED RESEARCH
In understanding what types of information are and are not publicly available on this topic, I’ve suggested a few other routes you may be interested in researching:
What regulatory adjustments have been made in China in relation to e-commerce, and how have these impacted e-commerce platforms and online sales?
What are some of the limitations on types of products that Chinese SMEs or business owners can import to sell?
How has the overall climate for e-commerce shifted in China, in terms of B2C and B2B in the past five years? What future regulatory shifts are projected?
CONCLUSION
To wrap it up, there are over 100,000 active seller accounts on 1688.com and approximately 729,000 retail merchant buyers. After searching extensively, I was unable to find data on individual transaction rates or top categories, however one source estimates average daily sales of $60 million USD, and the company reported a revenue of $659.33 million in 2016. The company has seen rapid growth in light of looser regulations for businesses importing into China. Thanks for using Wonder! Please let us know if we can help with anything else!