Alibaba aims to open US doors with website

Alibaba Group Holding Ltd is planning an e-commerce push into the United States with a new website called "11 Main," which will feature technology items, jewelry and fashion goods from sellers who are "hand-picked" shop owners.

Through US-based subsidiaries Vendio and Auctiva, Alibaba will unveil the virtual marketplace that is under construction, the company confirmed on Tuesday. Alibaba did not specify whether the site will follow the example of its own commerce platform, which targets intra-entrepreneur businesses, or feature a Tmall-like business-to-customer site.

"Alibaba is happy to support 11 Main," according to an e-mailed reply to China Daily on Wednesday. "Alibaba is run by entrepreneurs and firmly believes in supporting entrepreneurs with great vision and a strong sense of mission for their companies."

According to Alibaba, the decision to tap into boutique e-commerce was generated by Vendio and Auctiva, two firms acquired by the group's business-to-business unit in 2010.

Both software providers enable small and medium-sized enterprises to sell inventory across online channels as well as mobile devices.

The acquisition has helped draw more US companies to Alibaba's trade matchmaking services and offer an alternative channel on which its existing customers can sell products online.

"This is a real sign that they want to learn more about this market, because you can infer that Alibaba would have access to the learning takeaways and the data that these sites will provide about the US e-commerce space," said Andrew Tonner, an analyst at The Motley Fool.

While it's not the same as directly targeting and moving into the US, it's still an expression of interest in the huge opportunity there is for Alibaba in the US, Tonner added.

The move marks the latest overseas expansion by Alibaba, which acquired a minority stake in US online vendor ShopRunner Inc last August. This January Alibaba made a $15 million Series C investment in luxury commerce website 1stdibs, which targets high-end fine art customers.

Alibaba's Tmall sold products worth $5.77 billion in a November promotional gala, including overseas destinations such as the United States and Southeast Asian nations.

It also rolled out a direct procurement platform, known as AliSourcePro for small-scale buyers and sellers overseas, said Qi Junsheng, business director of the international department of the company's business-to-business unit. The platform provides a bulletin board where buyers can state their requirements explicitly and then helps screen vendors and recommends viable merchants to the buyers.

On average, the new system lowers the transaction duration to 48 hours, cutting time and labor costs.

Alibaba has more than 7.2 million registered members in Europe, including more than 1.6 million in the UK, 420,000 in Germany and 495,000 in France, said James Hardy, Europe, Middle East and Africa director of Alibaba.

While its presence in the US can be traced back to almost a decade ago, recent acquisitions might help fuel its business penetration of the local market, said Zhang Jing, an analyst of digital commerce with consultancy iResearch.

"It aims to grab a seat in a market where the e-commerce landscape is mature, and forerunners such as Amazon Inc and eBay Inc compete fiercely," said Zhang.

Contact the writers at hewei@chinadaily.com.cn and amyhe@chinadailyusa.com.