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Alibaba Fires Up E-commerce War With Amazon Through 72-Hour Global Delivery:

Summary:
I have also read that many Chinese companies are experimenting with direct the the public sales. Also, Shimano, the Japanese bike accessories manufacturer, is experimenting with direct to public sales too, but only with some replacement components, not complete systems. Direct to the public could cause small shops suffer, but the big shops, like Amazon and Walmart, have too much power and squeeze suppliers, so this might be good for the manufacturers. The internet makes direct to public sales easier. Holland and Barrett was once a British company, but it got taken over by an American company who went on to squeeze all its suppliers. Seven Seas, a company that makes vitamins and fish oil supplements, refused to cooperate and lost half its market share overnight. I would like to see more

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I have also read that many Chinese companies are experimenting with direct the the public sales. Also, Shimano, the Japanese bike accessories manufacturer, is experimenting with direct to public sales too, but only with some replacement components, not complete systems. 

Direct to the public could cause small shops suffer, but the big shops, like Amazon and Walmart, have too much power and squeeze suppliers, so this might be good for the manufacturers. The internet makes direct to public sales easier. 

Holland and Barrett was once a British company, but it got taken over by an American company who went on to squeeze all its suppliers. Seven Seas, a company that makes vitamins and fish oil supplements, refused to cooperate and lost half its market share overnight. I would like to see more power put into the hands of manufacturs again. Hopefully, it will keep prices down rather than increase them. 

Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE: BABA) is intensifying Amazon.com Inc (NASDAQ: AMZN) rivalry by promising fast deliveries from China to anywhere in the world, the Wall Street Journal reports.

What Happened: Alibaba aims to deliver goods from China globally in 72 hours. Lower price and faster delivery play a crucial role in winning market share. Alibaba’s e-commerce products are cheaper than Amazon due to its direct access to Chinese factories and merchants.

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Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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