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Alibaba makes clear Amazon challenge in Europe by slashing rates

Discussion in 'Business News & Resources' started by Helen, Jan 8, 2020.

  1. Helen

    Helen

    Joined:
    Mar 26, 2013
    Messages:
    515
    The monster Chinese B2B marketplace Alibaba has made a clear roar of challenge to Amazon by it's first aggressive move to bring online sellers to its International Platform AliExpress.

    There has been a long history of European and American sellers shying away from Alibaba on a feeling of 'cheap chinese goods' and they have recently gone on a charm offensive to convince retailers to take the leap in Italy, Spain, Russia and Turkey (amongst others) by slashing their prices

    They have waived a monthly selling fee and slashed the commission rate to 5-8%, compared to amazon's 39Euro plus 7-15% commission.

    Will be interesting to see if they manage to gain a foothold and turn aroud their product reputation
    Import Expert likes this.
  2. Jed

    Jed

    Joined:
    Feb 16, 2009
    Messages:
    8,837
    I think the same way that Yahoo, eBay & Amazon have struggled and failed in China, Alibaba will continue to struggle in the western markets no matter how big their cash pile is, they already tried to break in to the US market with little success.
  3. Helen

    Helen

    Joined:
    Mar 26, 2013
    Messages:
    515
    That’s a very good point. I assume they think that Europe might give them more success as a bit more pliable, but it is a difficult market and the perception of alibaba is certainly that it should be approached with caution
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