Use Alibaba Groups Consolidated Income Statements in its IPO Prospectus (p. F-3) to calculate its gross profit margin and net profit margin for the year ended March 31, 2014. Compare these ratios with the following ratios from Amazon and eBay for the year ended December 31, 2013. Consider the three companies business models to provide a possible explanation for the differences you observe.

Gross Profit Margin Net Profit Margin

Amazon 27.23% 0.37%

eBay 68.62% 17.80%