Menu
Alibaba sells off 11Main US e-commerce site to focus on China

Alibaba sells off 11Main US e-commerce site to focus on China

Alibaba has been focusing more on luring U.S. merchants to its China business

An Alibaba sign at the company's offices in Hangzhou, China.

An Alibaba sign at the company's offices in Hangzhou, China.

Alibaba Group has decided to sell off its 11Main e-commerce site in the U.S., as part of its focus on attracting foreign brands to its China business.

OpenSky, a U.S.-based online retail company, will be taking over 11Main. "This joining of forces will help drive sales worldwide," Alibaba said on Tuesday.

As part of the deal, Alibaba has also sold its Auctiva and Vendio properties to OpenSky, in exchange for a minority stake of 37.6 percent in the U.S. company.

11Main, which launched last year, represented an Alibaba foray into the U.S. market. The site was, however, a small operation and offered goods from boutique merchants, rather than competing head-on with Amazon or eBay.

In China, Alibaba dominates the e-commerce market through its Tmall.com and Taobao Marketplace sites. Many expected the company to expand globally, following its massive IPO in the U.S.

But lately, the company has been talking more about its China business, and its plans to lure U.S. brands to sell over its e-commerce platforms in the country. Earlier this month, its founder Jack Ma urged U.S. small businesses to partner with Alibaba as a way to reach millions of Chinese consumers.

"People say, 'well, when are you going to come to invade America?''" Ma said in a speech in New York. "We do not come here to compete. We come here to bring the small businesses," he added.

OpenSky did not immediately respond to a request for comment. The company also focuses on selling goods from smaller merchants, similar to 11Main's business model. OpenSky launched in 2011, and now has over 50,000 businesses signed on.

Although Alibaba is parting ways with 11Main, it has been active in investing in U.S. tech companies, including SnapChat. After the 11Main sale, Alibaba will still have has its AliExpress business, an English language site designed to sell Chinese goods to customers across the world.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuese-commerceAlibaba GroupinternetMergers and acquisitions

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments