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Alibaba Brings AliExpress to Its Global Competition with Amazon

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AliExpress opens up to merchants outside China

Alibaba’s (BABA) AliExpress is upgrading its business model in an apparent attempt to pile more pressure on Amazon (AMZN) in the global e-commerce market. According to a report by the Financial Times, AliExpress has begun allowing merchants outside China to sell on its platform. Since its launch in 2010, AliExpress has mostly operated as Chinese merchants’ gateway into the global retail market, allowing them to sell to consumers in more than 150 countries.

AliExpress has now opened its platform to merchants in Russia, Turkey, Italy, and Spain, allowing them to sell to its global audience. The move shows Alibaba ramping up the competition with Amazon for international merchants.

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Alibaba is keen to take digital marketplace share from Amazon

A 2018 study by Feedvisor showed AliExpress as one of the alternative marketplaces used by Amazon sellers. The study showed that at least 2.0% of Amazon sellers had listings on AliExpress. In 2018, the top alternative marketplace used by Amazon sellers was eBay (EBAY), with 52% of Amazon sellers having listings on the platform. Walmart (WMT) was found to host 25% Amazon sellers across its digital marketplaces, and Shopify (SHOP) was found to host 17% of Amazon sellers. Adobe’s (ADBE) Magento and Sears are the other platforms used by Amazon sellers to extend their online consumer reaches.

Alibaba’s decision to open AliExpress to international merchants could see the platform become a stronger challenger to Amazon in the global e-commerce space.

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