Alibaba enters US market via acquisition

13:10, June 28, 2010      

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China's largest e-commerce web site Alibaba.com announced last week that the company will acquire Vendio Services Inc., a U.S.-based online commerce operator, to expand its operations in the U.S. market.

This is Alibaba's first acquisition abroad and is expected to give Alibaba access to over 80,000 small business clients in the United States.

Alibaba's chief executive David Wei said that he is seeking chances to promote the "B2B2C (Business to Business to Consumer)" model in the United States.

Although the company is operating Taobao.com, China's largest online markets for consumers, it has no plan to enter the U.S. online retailing market, said Wei.

Alibaba expects that clients from Vendio will acquire wholesale items from Alibaba's huge supplier network and sell them on e-commerce platforms such as eBay and Amazon.com.

Alibaba, backed by billionaire investor George Soros, dominates the e-commerce market in China. As of May 2009, overseas revenue accounted for 2 percent of the company's total. Wei said last year he aims to boost that number to a third of Alibaba's total revenue within five years,

The transaction is expected to be completed next month, Alibaba said.

"We now have a new channel giving our China and Asia-based customers access to the U.S. market," Wei said. "At the same time, merchants in the United States have exclusive access to wholesale sources that are part of the Alibaba network."

By People's Daily Online

(Editor:祁澍文)

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