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.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuese-commerceAlibaba GroupinternetMergers and acquisitions

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments