Amazon opens store on Alibaba's Tmall platform

Amazon opens store on Alibaba's Tmall platform

American online giant Amazon has opened a store on Alibaba's online marketplace, Tmall. Basically, it is opening a store at its biggest competitor in an attempt to spur its Chinese sales.

Pay a fee to your major rival

Retailers on Tmall have to pay a fee to Alibaba for every transaction, which means Amazon will pay its competitor for every item it sells on Tmall. Nevertheless, Amazon is determined to move ahead, as it is facing a struggle to gain ground in China - currently only reaching a 1.3 % market share, while Tmall dominated the market with 57.6 %. Despite China's huge online potential, Amazon barely generated 3 % of its total turnover in China.

 

The company seems to have realized it cannot increase its Chinese business on its own and is now searching for brand recognition and sales through a competitor that currently owns about 80 % of the Chinese online market. Several other brands, like Apple, Nike and Gap, also have their own store on Tmall to better service potential Chinese customers.

Questions or comments? Please feel free to contact the editors


Rakuten bridges gap to Japanese online consumer

30/10/2017

In Alibaba and Amazon’s shadow, Japanese Rakuten Ichiba is quickly developing. Several Western chains are using the platform to sell their products to Japanese online consumers.

Whole Foods contributes to Amazon's enormous turnover increase

27/10/2017

American Amazon’s third quarter turnover grew a lot once more, partially thanks to Whole Foods. This was the first time the chain’s turnover was added to Amazon’s overall turnover.

More than half of American families subscribed at Amazon

21/10/2017

An astonishing ninety million Americans have joined Amazon’s subscription program, Amazon Prime. Considering there are 126 million families in the United States, it is clear that Amazon has a tight grip on its home territory. What can Europe learn from this?

Safe.Shop is new global eCommerce trust mark

16/10/2017

Safe.Shop is the world’s first global eCommerce trust mark. Currently, only twelve countries signed up, but that number should increase in the future.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Back to top