Alibaba Sells Off 11 Main Along With Auctiva and Vendio
"A decision by Alibaba Group Holding Ltd. to sell its U.S. online shopping site to a U.S. rival highlights the challenges facing the Chinese electronic-commerce company in mature Western markets dominated by competitors such as Amazon.com Inc. and eBay Inc.", reports The Wall Street Journal.
Alibaba started 11 Main only a year ago, but will sell the marketplace in return for a 37.6% stake in OpenSky. Alibaba now plans to concentrate on helping overseas merchants and brands sell their goods to Chinese consumers. Alibaba holds roughly 80% of the online shopping market.
"The key issue is whether we are going to have something in the U.S. market that will really target U.S. consumers. We think in the long run that's an interesting market to us. But today, our focus is very much on cross-border activities" that connect U.S. sellers with Chinese consumers, Alibaba Executive Vice Chairman Joseph Tsai said in a November interview with the WSJ.
Source: The Wall Street Journal