E-Commerce and the Price War in China: the Case of Taobao

Evaluation of e-shopping companies has practical significance in the e-commerce industry of China. The price and trust of consumers are the key factors which determine the success of the e-shopping companies. This article fist looks into the relationship between consumers' attitude towards the buying from Taobao and Price offered by the company Taobao. Then it determines the importance of price and trust of consumers on Taobao. This paper confirms the people attitude towards using the E-shopping company Taobao for future purchase from the company. The Taobao business has been specially focused and proved that Taobao generated the revenue and market shares in the china's e-commerce industry.