Sina Tech, 5/20/11
Liu Qiangdong, chairman and CEO of Beijing-based IT products B2C e-commerce platform 360Buy, announced the company's four-prong book-selling strategy today on his Sina Weibo microblog.
1. Beginning June 1, 2011, authors will directly receive a 3% revenue share for each book sold on 360Buy, with no conditions. Details for collecting revenue share will be published at a later date.
2. Because publishers' average cash flow cycle is currently 200 days with low capital efficiency, 360Buy has pledged to have all book purchase orders processed in no more than half the time it currently takes to receive payments from rival Dangdang (NYSE: DANG), and purchase exclusive selling rights to bestselling titles. As of today, procurement funds for 360Buy's books department have been raised to the sum of RMB 1 bln.
3. Liu Qiangdong will personally donate RMB 1 mln to the Chinese Authors' Rights Defense Coalition to support them in their lawsuit against copyright violators, and pledges to continue providing financial support based on the alliance's needs.
4. 360Buy will soon announce a major acquisition, but at present cannot divulge any details.