This archive report was first published on 25 July 2019.
July 25, 2019 - In a move to expand its global reach, Alibaba has announced that it will be opening its platform to American businesses, enabling them to sell their products to small- and mid-sized business buyers worldwide.
This decision is expected to help Alibaba better compete with Amazon and Shopify, which already have a thriving marketplace for large companies to sell to business customers across the globe.
Previously, American businesses could only buy on the Alibaba.com platform. Now, they can sell to other businesses in the United States, China, and elsewhere.
Alibaba, founded by billionaire Jack Ma, has already partnered with top US companies such as Office Depot and Robinson Fresh, a produce seller owned by logistics company C.H. Robinson Worldwide.
The B2B industry generated $23.9 trillion in revenue globally in 2016, while e-commerce sales directly to consumers totaled $3.8 trillion that year, according to figures from the United States International Trade Commission.
“Alibaba aims to empower entrepreneurs and help them succeed on their own terms,” said John Caplan, head of North America B2B at Alibaba Group, in a statement.
Caplan added that he’s not too concerned about competition with the likes of Amazon, Shopify, and others, stating, “We think competition is good and we think anything that helps small businesses is good.”
Shares of Alibaba rose more than 1% on the news, despite worries about China’s economy and tariffs.
