Alibaba is competing with Amazon
Alibaba, a Chinese e-commerce or online product marketing company, is competing with Amazon, a US company. Alibaba announced yesterday that it is going to open up opportunities for US companies to sell products to small and medium-sized business firms worldwide.
Earlier, US companies could buy only products through Alibaba. From now on, US companies will be able to sell products through Alibaba to traders around the world.
CNN says Amazon and Shopify will face competition from Alibaba's initiatives. Through these two US-based e-commerce companies, large US companies are selling products worldwide. Meanwhile, Office of the Depot (ODP) and Robinson Fresh, two of the top US product manufacturers, have decided to attend the launch of the new service.
This process of selling goods from a business organization to a business organization is called the B2B process. According to a report by the United States International Trade Commission, worldwide sales of goods through the B2B process earned $26.5 trillion worldwide. At the same time, the sale of goods directly to the buyers through e-commerce was $1.3 trillion. It is estimated that a large part of this income will now be left to the Chinese companies.
As a result, Amazon's total assets in 2012 were $12.3 billion. On the other hand, Alibaba's assets were $12.2 billion at the same time.
John Caplan, head of B2B's business in North America, Alibaba Group, says Alibaba's goal is to empower entrepreneurs to help them succeed in business. They are not thinking about competing with Amazon, Shopify or anyone else.
This announcement of Alibaba's new move comes at a time when the United States' trade war with China is underway. At that moment, many wondered at Alibaba's move. Of course, John Caplan said he was not worried about the recent slowdown in China-US trade and the Chinese economy.
Meanwhile, Alibaba's share price has risen one percent since Tuesday's announcement. Although the Chinese economy's growth is relatively sluggish, Alibaba's share price has risen by almost 8 percent this year.
Alibaba, a Chinese e-commerce or online product marketing company, is competing with Amazon, a US company. Alibaba announced yesterday that it is going to open up opportunities for US companies to sell products to small and medium-sized business firms worldwide.
Earlier, US companies could buy only products through Alibaba. From now on, US companies will be able to sell products through Alibaba to traders around the world.
CNN says Amazon and Shopify will face competition from Alibaba's initiatives. Through these two US-based e-commerce companies, large US companies are selling products worldwide. Meanwhile, Office of the Depot (ODP) and Robinson Fresh, two of the top US product manufacturers, have decided to attend the launch of the new service.
This process of selling goods from a business organization to a business organization is called the B2B process. According to a report by the United States International Trade Commission, worldwide sales of goods through the B2B process earned $26.5 trillion worldwide. At the same time, the sale of goods directly to the buyers through e-commerce was $1.3 trillion. It is estimated that a large part of this income will now be left to the Chinese companies.
As a result, Amazon's total assets in 2012 were $12.3 billion. On the other hand, Alibaba's assets were $12.2 billion at the same time.
John Caplan, head of B2B's business in North America, Alibaba Group, says Alibaba's goal is to empower entrepreneurs to help them succeed in business. They are not thinking about competing with Amazon, Shopify or anyone else.
This announcement of Alibaba's new move comes at a time when the United States' trade war with China is underway. At that moment, many wondered at Alibaba's move. Of course, John Caplan said he was not worried about the recent slowdown in China-US trade and the Chinese economy.
Meanwhile, Alibaba's share price has risen one percent since Tuesday's announcement. Although the Chinese economy's growth is relatively sluggish, Alibaba's share price has risen by almost 8 percent this year.