Alibaba takes on Amazon in a $1.8 trillion US market

Alibaba takes on Amazon in a $1.8 trillion US market

America

Yahoo


Alibaba (BABA) is known for connecting foreign brands with Chinese consumers. Now as part of its globalization strategy, the Chinese e-commerce giant wants to be the go-to online marketplace where American businesses trade with each other.

Alibaba revealed its ambitious plans for the U.S. market on Tuesday by launching new capabilities for U.S. businesses on Alibaba.com, including domestic payments, marketing tools, and a U.S.-based support team. It is also kicking off, in Brooklyn, New York, a national tour to recruit U.S. small businesses to sell on its platform. A few anchor retailers like Office Depot (ODP) and RobinsonFresh have already opened their stores on Alibaba.com, but the company is not disclosing the exact number of U.S. sellers that have signed up for the new initiative so far or its goal.

The move puts the Chinese e-commerce player in direct competition with Amazon (AMZN) in the business-to-business (B2B) online marketplace. Online business sales have grown fast and have overtaken retail e-commerce sales. By 2019, the U.S. B2B e-commerce market will be worth $1.1 trillion, compared to the business-to-consumer (B2C) market at $480 billion, according to Forrester.


Continue Reading


Post a Comment

0 Comments