to love what are the other two things that you need to make people feel comfortable buying on your site well you need secure payments and you need a good delivery service now in the late NUMBER_TOKENs jack ma saw the power of the internet and what it could do for chinese e-commerce however at the time he lacked the other two pillars the big four chinese state-owned banks offered very little service for individuals or small businesses because as they were state funded their number one objective was to service state-owned businesses and in terms of package delivery people relied very heavily on china post these were obviously going to be big bottlenecks to success so jack initially founded alipay a small time banking and payment platform designed specifically for individuals and small businesses now this meant he had control over a payment system that could then be used by the masses for alibaba's e-commerce sites then to solve the logistics problems jack ma later invested in china smart logistics also known as chanyao tanyao as we discussed before links a network of logistics partners merchants and consumers to help improve deliveries vastly increasing the speed and efficiency of package delivery and also reducing the incidence of damaged products and late deliveries and with those two businesses coupled with taobao and timor alibaba had its recipe for success that is the iron triangle that really enabled the huge network effect of taobao and tmall because end to end the consumer experience when they visit those sites is fantastic with those three pillars plus the huge tailwind of the rising wealth of a large percentage of the enormous chinese population that was the ticket to building an e-commerce powerhouse so guys that will do us for part one of our little alibaba mini series obviously still a lot to cover next up we will be looking at these super investors and why they decided to buy into alibaba so stay tuned please leave a like if you enjoyed this video subscribe if you haven't check out profitful if you'd like to and i'll see you guys in the next video
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