Alibaba fires shot at Amazon with big US sellers announcement

Alibaba Group is opening up its B2B marketplace to US sellers.

Previously, US SMEs could only source goods on Alibaba.com due to the site originally being launched to connect suppliers in China with buyers in overseas markets. A newly opened channel, along with a new network of industry partners and a nationwide tour to meet with business owners and teach them about Alibaba.com, is part of a push to change that. Further details here.

“We aim to empower entrepreneurs and help them succeed on their own terms,” says John Caplan, Head of North America B2B at Alibaba Group. “With 10 million active business buyers in over 190 countries and regions, we are reshaping B2B commerce by providing the tools and services needed for US SMB companies to compete and succeed in today’s global marketplace.”

For eMarketer Principal Analyst Jillian Ryan, the initiative shows the Chinese retail giant’s desire to diversify its product offering. Currently, about 90% of the goods sold on the marketplace are from factories in China that are often manufacturing custom goods-to-order for buyers across the globe, she observes. Buyers on the platform are from developed nations like the US, Canada, India, Australia, Brazil and the UK, and they want to be able to source goods from the US.

"Alibaba says this announcement will enable US B2B SMB sellers to reach a global audience. While that may be true, Amazon Business’ success in selling commodity goods from third-party sellers on its marketplace is another likely driver for Alibaba’s new initiative,” Ryan adds.

And while this news is big, much is still up in the air about the impact of the move. Alibaba has a few select pilot sellers and two major ‘anchor sellers’ in Office Depot and Robinson Fresh, but in order to make waves long-term, SMB adoption must come along.

“The success of this programme will depend on whether Alibaba can recruit a strong number of successful sellers. It will ultimately determine whether it will be able go toe-to-toe with Amazon in the B2B commodity market,” Ryan concludes.