Chinese e-commerce giant Alibaba Group Holdings Ltd will now allow small busines...
FILE PHOTO: A logo of Alibaba Group is seen at an exhibition during the World Intelligence Congress in Tianjin, China May 16, 2019. REUTERS/Jason Lee/File PhotoRoughly one-third of buyers on Alibaba.com are U.S.-based. More than 95% of sellers come from China. This plan will open up markets to U.S. merchants in countries including India, Brazil and Canada. U.S. merchants will also be able to sell to other U.S.-based businesses.
Alibaba, which does not sell inventory of its own, hopes to win over local U.S. businesses as their marketplace platform of choice by offering small- and medium-sized businesses global selling power. Alibaba highlighted its interest in winning over manufacturers, wholesalers and distributors. Rival Amazon, in addition to selling its own inventory, allows third-party vendors to list products for sale on its website. Those vendors may store their products in Amazon’s warehouses or ship directly to customers.
Alibaba said U.S. sellers will have to pay a membership fee of roughly $2,000 to get their online stores on Alibaba.com up and running, in addition to any marketing and advertising costs. Amazon charges third-party sellers by the month or per item.
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