Amazon (NASDAQ:AMZN) announced the opening of its second store on Alibaba's (NYSE:BABA) e-commerce platform, Tmall. The new online store features women's footwear, toys and kitchen products, in addition to the existing selection of electronic, food, household, baby and maternity items.
Amazon's first shop on Alibaba's Tmall, to sell its Kindle e-book reader, was launched last year, but has been available in China since 2011. Tmall services account for 50 percent of all Chinese business-to-consumer transactions, reported the BBC. The site acts as a marketplace for online retailers and offers payment processing services.
Other American companies in business with Tmall include Gap and Costco.
China's e-commerce industry is growing fast and Amazon wants to be a part of it. Last year, China's biggest retail chain, Suning, generated about $17 billion, and Tmall made almost half that in just one day—Singles Day.
Amazon is currently doing a test run of its Tmall store, which will officially launch at the end of March or the beginning of April.
The move could mean Amazon is admitting that the Chinese market is a tough one for American businesses to crack. It could also be a way to build the brand's name in the country.
Amazon is making a big push into Asia these days. Last month it was reported that the e-commerce giant could open an office in South Korea any day now to compete with the country's Gmarket.
-See this BBC article
-See this CNBC article
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