Seems there is a lot of mis understanding here. Alibaba is simply a company owning several B2B platforms, just like Ebay. (Which is Taobao actually.) Fake items are sold by individual sellers, most time you stated them as fake, and you know you won't be able to get a rolex for $100. It's you being cheap to try to buy such stuff.
Alibaba's Taobao is way better than Ebay, if Alibaba seriously thinks about doing business in US, at least I'm not oppose to it. Competition is always great, we always benefit from it as costumers.
1st of all, selling on Taobao is fee free, completely, unless you want marketing (boost your item top the top of some key words search entry) And the corresponding ZhiFuBao (same as Paypal) is free, moreover acts like a bank, you can get interests if you deposit your money in.
The way ZhiFuBao acts is actually better than it of Paypal. It acts like a real 3rd party. As a buyer, your payment goes into ZhiFuBao, NOT to the seller, and until you receive the item, confirm it matches the description, then you hit yes, the payment then goes to the seller.
2nd, Taobao has its own software enable seller and buyer to communicate real time, like MSN. I consider it helps a lot. I'm just so tired of the ebay's message communications.
3rd, Taobao's overall UI interface/ web design is better IMO.
Some others, feedback system is way better than ebay, like Amazon, you can upload photos and modify your feedback after time of using.
Fly me away.