Amazon has opened an online marketplace on the Chinese retail platform Alibaba’s Tmall. Amazon quietly launched its site this week.
Alibaba’s Tmall is an online mall in which several stores, such as Adidas and Apple, set up and sell directly to consumers. Then, Tmall takes a cut of the sales.
Amazon’s decision to launch a store on Tmall was done in an effort to expand their presence in China, according to CNNMoney. Most of the merchandise that appears on Tmall comes from Chinese manufacturers, so Amazon may offer new products to Chinese consumers.
An Alibaba spokesman said that Amazon’s presence will make for a fuller product selection and “elevate the shopping experience” for consumers on Tmall. So far, product categories include American snacks, women’s shoes and children’s toys featuring brands such as Crayola, Blue Diamond and Lego.
Amazon also has its own site in China. Amazon Global Store was launched in January, and it provides 200,000 selected products from Amazon’s website in the U.S. in which Chinese consumers have the opportunity to purchase products for the same price as U.S. buyers with Chinese e-commerce shopping experience.
Although the Chinese Amazon Global Store has been running for four years, a November report from a Bejing-based market consultancy outfit stated that the store only accounted for 1.3 percent of China’s business-to-consumer sales in the third quarter of 2014. Tmall came in with 57.6 percent of sales transactions. Both Alibaba and Amazon declined to comment on how Amazon on Tmall compared to its Chinese site.
Alibaba will benefit from Amazon’s move by gaining a credible retailer on its retail platform. In the past, the platform has received criticism from Chinese authorities over the selling of counterfeit goods as reported by Wired. Amazon’s presence will likely aid in the recovering their reputation.
The news of Amazon’s store on Alibaba arrived around the time Alibaba opened their Silicon Valley data center to compete with Amazon in the cloud. Alibaba has not announced any further plans to challenge Amazon in terms of online retail.
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