The average citizen in China does not use any foreign websites to do anything [citation needed]. All the services you and I consume online are replicated in China by Chinese companies. From Gmail to Yahoo!, from Facebook to twitter, from Amazon to eBay, from CNN to FOX.
It's really no surprise you haven't heard of this (I haven't either). Very few such Chinese sites even attempt at marketing themselves out of mainland China (notable exemption being the original Alibaba marketplace to great effect, Taobao is apparently a different site by the same group). It's fascinating how the internet has so effectively bridged other cultures while keeping others at arm's length - even when connected and technically accessible.
For every site that is created in a western country in english there is a chinese equivalent that will pop up within a few months that caters to chinese users and the chinese language. Western companies just dont care enough about the chinese users to create sites that they would be comfortable using
Maybe the censorship issues caused by the governmental firewall coupled with murky rules for doing business over the web in China, doesn't exactly translate into a business friendly environment?
This is false, actually the GFW is built in parallel with multiple backbones, which in very high bandwidth the censorship fails from time to time.
Same goes for Russia.. and in smaller scale to some other countries.
(I'm sorry, this comment isn't like me, but I couldn't resist.)
(Of course there's always the political problem, the knockoffs are often State-sponsored etc etc, but I bet they'd suffer in face of superior competition, if they actually had real competition.)
A word of caution, if something goes wrong your money is almost certainly lost. Sometimes the firm that you bought it from has folded (I've had this happen in the time it took to deliver the order) to the seller sending bricks. It is buyer beware to the extreme but usually for the price you are paying you can afford to lose the occasional shipment and still save money.
On the one hand, compared to Amazon.com, Taobao sounds like a horrible shopping experience. On the other hand, compared to a shuk (or whatever the Chinese equivalent is), it is a vast improvement.
Context is everything.
(1) Shops are absolutely crap scared of a bad review. Shoppers avoid bad reviews like the plague, and there's normally so much competition that you can always find an alternative. The 1 time we gave a bad review, we had a call from the seller within 1 hour offering all manner of things for us to take it back.
(2) Delivery is excellent - next day courier services. Taobao practically revolutionised the postal service in China because the national postal system was so bad. So, 10RMB (around £1) can get you national, next-day delivery for most small items (eg. a small parcel).
(3) The mobile site is awesome, full stop.
(4) There's just so much choice. I can buy official, full price products from the brand (ie, not a reseller, but the actual company), or 2nd hand, or knockoffs. Most knockoffs are clearly marked as such.
(5) Safety - it's not a direct payment system per se, but an escrow service. If you aren't happy in any way with your product, you click a button and the seller gets nothing.
Taobao has one factor that generally makes it better than ebay and most other online retailers and auction sites: it is the sole source of income for many companies that sell through it. Many Chinese manufacturers are only selling their products through the alibaba ecosystem so they really care about their reputation. That is why they get defensive or start offering all sorts of things to remove bad reviews, because it can shut down their whole revenue stream.
There is aliexpress also which is in many languages.
That said, even after his explanation of "it's kind of like amazon prime" I still don't understand what's going on here.