EcommerceBytes-NewsFlash, Number 2412 - November 12, 2010     4 of 4

Alibaba Comments on Vendio and Auctiva Acquisitions

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Alibaba released its financial results for the quarter ended September 30, 2010. Gross profit increased to $178.3 million in the period, up 35% year-over-year. Gross profit margin declined slightly to 83.3% compared with 86.6% in the same period last year primarily due to a higher cost of revenue stemming from the inclusion of financial results from HiChina and Vendio, which had relatively lower gross profit margins.

Revenue from its international marketplace increased to $125.1 million in the period, a 32.5% increase year-over-year and a 7.1% increase quarter-over-quarter. The quarter's growth was primarily due to the increase in revenue from China Gold Supplier membership and VAS as well as the consolidation of revenue from newly acquired Vendio and Auctiva.

The company said that through the acquisition of Vendio and Auctiva, it gained access to more than 250,000 small online retailers with potential sourcing needs from suppliers on Alibaba's international marketplace and AliExpress.

"The connection of these two platforms with our marketplaces will help integrate the e-commerce value chain between B2B and B2C, fully realizing the B2B2C model. Business integration is underway as we are now working on further matching criteria like product categories in demand, quality and scale of suppliers, etc. between the buyers and our AliExpress suppliers."


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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