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

Endoscopy Market Report Regional Trends, Revenue & Forecast To 2024
Author: Rahul Varpe

Based on the research, the size of the overall Endoscopy Market was recorded at USD 26 billion in the year 2017 and is now projected to surpass around USD 40 billion by 2024.

The Endoscopy Market report has been evaluated in terms o...


Dermatology Devices Market is set to record 11.9% CAGR during forecast time
Author: Rahul Varpe

The size of the Dermatology Devices Market was accrued at USD 9 billion in 2018 and is presumed to accumulate over USD 20 billion by the year 2025. According to research, the Dermatology Devices Market is expected to grow with a CAGR of 11.9% duri...


By 2025, Biosensors Market is Expected to Record 31.5 Billion Doller Revenue
Author: Rahul Varpe

The Biosensors Market size was estimated at USD 18.6 billion in 2018 and is projected to surpass USD 31.5 billion by the year 2025.


During the period of 2019-2025, the Biosensors Market is anticipated to expand with a CAGR of 8%....