Alibaba open for small businesses in U.S. to sell on its platform
Date: 2019-07-25   Author: Sunil Hebbalkar  Category: #news

Alibaba open for small businesses in U.S. to sell on its platform

  • Approximately 95% of sellers on Alibaba.com are from China with one-third of online buyers coming from the U.S.
     
  • U.S. merchants would need to pay a $2000 membership fee to get their products on Alibaba.com

Alibaba Group Holdings Ltd., (Alibaba), an ecommerce conglomerate, has reportedly announced that it would allow small businesses in U.S. to sell globally on the company’s e-commerce platform.

Reports cite, Alibaba seeks to enter in business-to-business (B2B) e-commerce market to compete with its rivals such as Amazon. This move would open markets to American merchants in countries where Alibaba serves, including Brazil, Canada and India. U.S. merchants who could only buy things from Alibaba earlier can now sell their products to other merchants in the U.S. on the platform.

Alibaba’s decision to open itself up for small U.S. businesses comes as it faces dwindling revenue growth through e-commerce, which is further being threatened because of the U.S.-China trade war. Alibaba, not having its own products to sell, intends to attract small and medium-level businesses in U.S. to its platform by offering them global selling power.

Recently, Alibaba also launched an English website for its Tmall Global marketplace, primarily focused at merchants, with the aim of doubling the number of international brands selling products on the platform to 40,000 over the coming three year span.

For the record, the U.S. International Trade Commission valued the business-to-consumer ecommerce industry at $3.8 trillion while the business-to-business (B2B) ecommerce market was valued at $23.9 trillion.

Daiwa analyst, John Choi stated that Alibaba won’t benefit financially by this decision in the short-term, but it would open a new market for company’s B2B business. Choi further added that while Alibaba was famous as a bridge for China’s established merchants to get into global markets, now it would be a gateway for U.S. merchants as well.

According to reports, Alibaba would charge a $2000 membership fee to U.S. merchants to get their own stores on the platform.

Source Credits : https://www.reuters.com/article/us-tech-alibaba-usa/alibaba-welcomes-u-s-small-businesses-to-sell-globally-on-its-platform-idUSKCN1UI1DO



About Author


Sunil Hebbalkar

Sunil Hebbalkar

Sunil currently works as an content writer at AlgosOnline. A Post graduate mechanical design engineer by qualification, he worked as an intern at the defense lab for one year in the engine design and development department before switching his professional genre. Foll...

Read More

More from Sunil


Post Recommendents

CTS presents Intelligent Transport Management Technologies at ITS 2019
Author: Saipriya Iyer

The rapidly expanding global population is further leading to rapid urbanization, which has raised many critical issues, including road safety problems and increasing congestion on the road. The growing need for sustai...


Freshworks looks for a fresh funding round to aim at $3 Bn valuation
Author: Saipriya Iyer

As per NASSCOM, India’s software as a service (SaaS) industry is slated to grow 36 percent annually and reach $3.3-$3.4 billion by 2022. Cheaper workforce, mature sales ecosystem, abundant talent and adoption of ...


CARFIT finishes seed funding round with PlugandPlay and CIC Capital
Author: Paroma Bhattacharya

Global predictive maintenance sector is predicted to witness an exponential growth over the coming years. Seeing the immense growth opportunity, several global venture capital firms are increasingly investing in predic...