Alibaba encroaches on Amazon territory | RetailDetail

Alibaba encroaches on Amazon territory

Alibaba encroaches on Amazon territory

Chinese ecommerce giant Alibaba is moving into the territory of its American competitor Amazon, as it launches 11main.com, its own American-based site. However, Amazon is not sitting back, because it too will be expanding its American foothold.

Steady American expansion

Alibaba already has the Chinese ecommerce market in its back pocket, since it controls 80 % of all Chinese ecommerce with its own B2B and B2C networks. Its latest numbers (regarding 2013’s third quarter) show a 1.31 billion euro turnover, mostly thanks to its Tmall and Taobao websites.

 

Still, Alibaba is not the same powerhouse outside of China, which is what the online giant hopes to remedy fast with its own site in the United States. Vendivo and Auctiva, two American subsidiaries, will collaborate to make it happen through 11main.com, a site which will focus on quality fashion and jewelry.

 

As the American internet sales are part of Alibaba.com, not the biggest part of the Alibaba group, this move cannot be considered a frontal attack on Amazon. Nevertheless, Alibaba seems to ready itself for an upcoming battle, as it had already acquired minority stakes in 1stdibs, an American luxury seller, and ShopRunner, a retail website.

 

Amazon will push on with its own expansion by hiring 2,500 new people in the United States. These new recruits have to help expedite orders from one of Amazon’s warehouses at Petersburg, Chester, Coffreyville, Dupont and Murfreesboro. Amazon already has quite an extensive personnel list, with 117,300 employees at the end of 2013 - not too bad for a company which only started out in 1995.

Questions or comments? Please feel free to contact the editors


Microsoft builds competitor for Amazon Go

14/06/2018

Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

LVMH invests millions in fashion search engine Lyst

24/05/2018

French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.

Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.