Alibaba Proves U.S Online Retailing Market with 11 Main Shopping Site.
Chinese e-commerce giant company, Alibaba Group Holding, has plans to enter into the U.S. online retailing market by utilizing shopping site Main 11, according to a recent report posted by the New York Times.
11 Main is based in San Mateo, Calif, offers its retailers who wish to sell their wares online under much more favorable terms than that of eBay having to charge them a 3.5 percent commission versus eBay’s 10 percent cut.
Alibaba’s online push into the U.S. market has as of yet to be opened for business, but it has handpicked several vendors that seem to appeal towards high-end shoppers.
Alibaba’s financial resources and it’s decision to brand 11 Main as its high-class destination than eBay may be giving the shopping site, which has yet to be launched, the weight it may need to throw around and compete against already established competitors such as ebay and Amazon, the times stated.
“There’s absolutely space in the U.S. marketplace for Alibaba,” Ina Steiner, co-founder of retailer news site EcommerceBytes.com, told the Times. “EBay doesn’t necessarily attract younger shoppers or high-end shoppers. If 11 Main can come up with a new marketing image that would appeal to a whole new set of shoppers, they’d do well.”
One other Alibaba will have to worry about is, not only having to compete against already established competition from the U.S., but also compete against domestic competitors who are also trying to make it into the U.S. market as well. One perfect example would be JD.com, Chinese second largest e-commerce platform, right behind that of Alibaba.
With its recent IPO launching in Nasdaq, JD.com has manage to surpasses some unexpected numbers during the past week, most like, not only giving them a high confident boost, but enough recognition to be able to spread into the U.S. themselves and gain a foot hold within the U.S.