- Tram Ho
On July 23, Alibaba Group said it has implemented B2B e-commerce business model (a model in which transactions take place directly between businesses) for US companies. This is considered a move to increase competition with rival Amazon and is part of Alibaba’s caliber plan to develop international market share.
To further promote business development outside of China, the US platform will enable US manufacturers, distributors and wholesalers to sell products and services to businesses and vendors. Other merchants in the US and around the globe.
Alibaba confronts Amazon in the B2B segment in the US.
The July 23 announcement of Alibaba was launched a year after US President Donald Trump began a trade war against China by imposing taxes on the country’s exports. Tensions between the two countries have continued to increase, with more and more confrontations expanding into trade, economic and especially technology issues.
As a result, the US government has tightened the law allowing Chinese investors to buy US assets and for US companies to export technology to China due to concerns about national security.
Alibaba chairman Michael Evans said: “Although there are certain tensions between the two sides, we still decided to make plans in the US carefully. I spent a lot of time in Washington to ensure they understand what Alibaba is trying to do in the US, including today’s launch, because it involves some form of technology that we want them to feel comfortable about. ”
Alibaba was founded in 1999 as a B2B website connecting manufacturers and wholesalers in China. Since then, the company has grown into the world’s largest e-commerce platform operator. It is known that Alibaba’s B2B unit is separate from retail platforms such as Tmall.com and Taobao.com – websites that sell directly to consumers.
A warehouse of Tmall in Guangdong province.
Currently Alibaba is promoting retail e-commerce worldwide. Recently, the company launched the English website of Tmall Global to attract consumers abroad.
With the launch of the B2B model, Alibaba will compete with Amazon.com, which has a similar platform since 2015 – Amazon Business, serving similar customers in the US. According to John Caplan, head of Alibaba’s North American B2B unit, to compete with Amazon, the company will provide customers with a moderate membership fee, about several thousand dollars per year. In addition, Alibaba’s platform will likely not charge too high from each successful transaction of the parties.
Amazon spokesman declined to comment on the issue. According to information on the company’s website, a qualified wholesaler can register for a minimum of $ 39.99 per month. However, according to a close source, Amazon charges up to 15% of sales of platform-generated sales.
Jack Ma, the founder of Alibaba, has started a global expansion plan since 2015. However, their international e-commerce revenue is still low, about 9% of the group’s total revenue.
According to financial statements, Alibaba reached nearly 56 billion in revenue and $ 12 billion in net income in the most recent fiscal year, while Amazon reported revenue of $ 233 billion and $ 10 billion in net income in 2018.
According to the US International Trade Commission, Alibaba – the company with more than 10 million B2B businesses and 180,000 different brands, is focusing more on this sector – a market worth $ 23.9 trillion, 6 times larger than the market. Online Retailers. However, Caplan said many of B2B transactions of Alibaba tend to slow down.
Alibaba’s first B2B agreement was signed four months ago with the world’s leading office service provider, Office Depot. The two sides launched a co-branded e-commerce website to provide Chinese merchants with the opportunity to sell to 10 million Office Depot customers and participate in the company’s distribution channel and logistics. deliverable the next day in the US.
Source : Theo Trí Thức Trẻ