Investment

Alibaba opens to US merchants for first time amid trade war

Bloomberg/Gilles Sabrie

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The initiative could generate new income and goodwill for Alibaba in the US, particularly as Washington and Beijing spar over trade.

Wednesday 24, July 2019

Alibaba Group Holding is opening its oldest online platform to US merchants, promising to help American businesses at a time US-China trade tensions are darkening the outlook for global trade, reported Bloomberg.

The Chinese e-commerce giant opened its e-commerce platform to US sellers for the first time, allowing them to peddle to buyers around the world who seek merchandise to stock shelves or materials to make products.

Alibaba says it now wants American producers to hawk their wares as well, eventually helping them tap a vast Chinese market. Fruit and vegetable wholesaler Robinson Fresh and Office Depot will be among the first US names to join Alibaba.com.

Two years after billionaire founder Jack Ma promised Donald Trump, he would help create a million American jobs, Alibaba is opening its wholesale platform to US sellers who want to tap a multi-trillion-dollar global procurement market.

The Chinese internet powerhouse is opening Alibaba.com just as a decelerating home economy depresses the top line, the online retailer is expected to soon post its slowest quarterly revenue growth in three years.

It’s the Chinese giant’s oldest business but now accounts for just a sliver of revenue, mostly through membership fees, marketing and shipping assistance.

Alibaba still gets most of its revenue at home but has taken steps to court international markets in recent years.

But like rival JD.com, Alibaba is trying to grab a bigger slice of so-called cross-border e-commerce, particularly as affluent consumers in the world’s number 2 economy buy more goods from abroad.

 

TAGS : Alibaba Group Holding, US-China Trade tension, Alibaba.com, Jack Ma

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