Alibaba has started offering an entry-level membership for Chinese suppliers called ?China Trust Pass Basic? for Rmb1,688 ($247) a year, about 40 per cent less than its cheapest domestic annual membership package.

Until now, annual membership for a China Trust Pass package ? including basic services such as a standard storefront, a trust rating and priority placement in search results ? cost Rmb2,800.

The changes in the pricing system mirror those made over the past 16 months for premium memberships.

In November 2008, the company began offering in China a ?starter pack? for its ?Gold Supplier? Alibaba premium membership price at a steep discount. In May 2009, this offer was extended to all markets.

The latest step indicates that the company considers its recent experiment of grabbing more market share with cheaper prices has been a success and is adjusting its overall strategy to match it.

The adjustments at the Gold Supplier membership level appear larger than the China Trust Pass ones given the higher membership fees ? the premium package is Rmb50,000 while the Starter Pack costs Rmb19,800.

However, analysts said the latest changes would alter Alibaba?s financial profile because of the much larger user base that would be affected.

The company had 475,422 CTP members as of the third quarter 2009, while there are only 18,611 Global Gold Suppliers.

Source : Konaxis