Could China’s Alibaba Become the Next Competitor…or Partner?

E-commerce continues to drive changes across all retail segments, and you don’t have to be an industry expert to know that Amazon is the major player in the U.S. e-commerce industry, but with Chinese e-commerce giant Alibaba’s IPO and growth plans that include the U.S., online retail could face a shake-up.

Alibaba doesn’t have much of a brand here in the U.S, yet, but U.S. consumers are showing their affinities for e-marketplaces as illustrated by the growth and scale of eBay and Amazon. Plus, Alibaba does a great job giving merchants on its marketplaces a lot of flexibility and options for promotion. Both eBay and Amazon are quite limited. A common theme from eBay and Amazon sellers is they don’t feel they are treated like a customer, that the consumer is the customer and the seller is a necessary evil

Alibaba is a builder of marketplaces. So unlike Amazon, it doesn’t compete directly with merchants/retailers. The question for retailers becomes, “Do I want to partner with this company and be part of its marketplace or other components.”

Alibaba says (via its Tmall division) that Chinese consumers have an insatiable demand for western goods. So another option for retailers is to consider partnering with Alibaba/Tmall for cross-border trade.

For more on the U.S. market penetration potential of Alibaba, click here for an interview with Scot Wingo, the co-founder and CEO of e-commerce software firm ChannelAdvisor. Wingo contributes to the industry through writing, speaking and connecting with e-retailers.