Monday, April 20, 2015

China Fines Alibaba Over Pricing Violations



Latest Alibaba news is regarding the e-commerce giant being fined by China. According to the sources, the company has been fined $129,000 which is approximately 800,000 Yuan by the Zhejiang provinces based price bureau, the reason had been the violations made by third-party sellers during the promotions of the company’s e-commerce platforms.
‘Singles’ Day’ celebrated on November 11 every year has been the response of Chinese people to the western Valentine’s Day. Alibaba, doing what they do best, changed this into a shopping festival and that too, online. This began in 2009 and has evolved into one of the native festivals since then. This has same proportion of being famous as much as Black Friday and Cyber Monday in the US.
Last year’s event made the e-commerce giant earn the sale of more than $9 billion. And the company has made phrase “Double 11” its copyright which a reference to 11/11 date, this, as per the Alibaba news refers to status belonging to single people.
Alibaba reports that the e-commerce giant has been fined by the government; the fine was of 500,000 Yuan which is approximately $81,000. The reasons included the pricing done by third party sellers on Singles’ Day on the Tmall market place in the years of 2013 and 2014. Furthermore, the fine also included $48,000 which is approximately 300,000 Yuan, this time for the promotions of 2013 and 2015.
The Alibaba Group expressed that despite the fact the pricing has been managed by third parties, the e-commerce titan will make sure to strengthen and regulate the pricing rules with sellers so that the consumers can be protected.
The sales are aimed to be boosted and also the customers to be gained by the 27,000 vendors that have been featured on Singles’ Day shopping web sites by Alibaba. Some of them have argued that the corporate rivalry which has been turned into a cut-throat competition and discounts have overshadowed the benefits, if there are any.
There have been occasional difficulties seen by Alibaba when it comes to regulating the e-commerce empire that sprawls; this now includes online stores such as Tmall and Taobao.
Alibaba.com had been hit by a scandalous case back in 2011 when the sales staff has conspired with the criminals so they could deceive the foreign customers. It resulted in multiple arrests and also the resignation of David Wei who was the then Chief Executive.
More than fifth of this year, the shares belonging to Alibaba had been lost. This includes analysts having an eye on counterfeit goods that baba has been accused for and also with thirdparty earing lackluster.

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