Student creates online business by selling goods from Taobao

Updated: 2013-03-23 10:09

By Mike Peters (China Daily)

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"The warehouse is fully automated, a system we bought from a German IT company, so bar codes on orders match bar codes on our shelves. We have a coded bin for every customer," she said, noting that more than 60 percent of orders come from repeat customers.

Vivatao isn't the only online outfit that creates a translation portal into Taobao, but the company has built its success on service.

"We provide quality control by checking every order in our warehouse," she said. Her team makes sure the order is correct and in the case of clothing is the right size. If the quality is not as good as advertised, the inspector contacts the customer in Russia to see if it's acceptable, since returns and refunds are limited to seven days.

"Sizes are the biggest problem. When a Russian sees 'XL' they expect something very big," she said, opening her arms wide. "In China, XL is usually not so big." There are guidelines on the site so that people can follow waist and chest measurements, for example, instead of guessing what "medium" means.

Out-of-stock items are a challenge, too, since her company has collected payment for the order already. "At that point, we contact the customer, ideally by online chat, and have a conversation in Russian to determine if there is a good substitute offered online."

Her partner, Alex Netrusov, meanwhile, operates a bricks-and-mortar Vivatao store in Kaliningrad, in western Russia, with four employees. Customers can walk in and place orders, and also examine certain kinds of merchandise, such as bicycles, before committing to a purchase.

"It's about image and also about overcoming fears of the Internet," she said. "We advertise a lot in Kaliningrad, on billboards and TV, and in supermarkets, and so people see that our company is real. The website also features the store in Russia and the warehouse in Beijing, so customers can be sure they are not sending money to a phantom enterprise."

Until now the company has focused on customers in Russia, but the next step is to take the business worldwide.

michaelpeters@chinadaily.com.cn

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