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


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.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.

Retail is main driver of artificial intelligence innovations

29/03/2018

Retail companies will invest about 2.76 billion euro in artificial intelligence this year. According to research firm IDC, they are the main driver for AI worldwide, ahead of the banking sector.

Amazon and Monoprix will collaborate

27/03/2018

Amazon will make a huge leap forward in France, thanks to a new collaboration with the French chain Monoprix. A large section of the latter’s product range will soon become available to Amazon Prime Now subscribers.