Alibaba lets American sellers onto oldest platform
Chinese ecommerce giant Alibaba, the country’s market leader in online retail, cloud computing and more, has finally opened up its original platform, Alibaba.com, to US sellers. The move is a bold gambit to get more overseas sellers active on its sites, and will put foreign firms (everything, in theory, from small “mom and pop” businesses to giant factories and more) in competition with Chinese sellers.
Alibaba’s share price has appreciated by 26% so far this year
Source: Yahoo Finance
Alibaba.com is a business-to-business platform that’s aimed at a global audience – from companies inside China to the US and Europe. By allowing US sellers to use the platform, Alibaba is finally put in direct competition with its overseas analogue, Amazon. Both companies now offer global business-to-business markets where third-parties can strike deals.
With the application of new tools to integrate US-based sellers, Alibaba is changing things up. Traditionally, Alibaba.com was a place where importer-entrepreneurs and small business owners could find Chinese suppliers. Now, the doors are wide open to a more global, more diversified, form of ecommerce. But can Alibaba be as successful against the big players in the wider world?
There are some signs of early success. Alibaba announced a “strategic collaboration” with US offices supply firm Office Depot last March. And on the Tuesday before last, it announced that US produce firm Robinsons Fresh would be joining Alibaba.com as a seller. All-in-all, Alibaba.com has about 10 million “active business buyers” in “more than” 190 countries and regions around the globe. That’s a market few people can ignore.
Dominion holds Alibaba in its Global Trends Ecommerce Fund.
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