Alibaba forays into Europe by proposing lower seller fees than Amazon
Category: #retail  By Saipriya Iyer  Date: 2020-01-11
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Alibaba forays into Europe by proposing lower seller fees than Amazon

Retail major Alibaba has decided to make its move in European markets after years of exploration. The company will undercut Amazon sellers’ fess with an aim to attract vendors but has experienced mixed results. AliExpress, the European platform of Alibaba, has witnessed the participation of several small enterprises in recent months but large enterprises are still holding back.

AliExpress has endeavored to persuade popular brands, such as Benetton, Spanish fashion group Tendam, owner of Cortefiel, and Mango to showcase their products on the site. But the attempt has proven to be partially successful as some of the brands didn’t consider AliExpress as the right platform to display their products.

Wang Mingqiang, Head, AliExpress, reportedly stated that foreign brands may require some time to understand the company’s platform. The company is facilitating brands with their own homepage on the platform, where they can create a customized user interface with pictures and videos, he added.

AliExpress is incessantly striving to generate opportunities to work with various partners. The company is committed to working as a reliable partner for both sellers and consumers.

Alibaba has been selling low-cost Chinese products, such as $2 crustal earrings and $3 USB cables overseas via AliExpress. This approach of the company has been reducing its appeal to a broader customer base. However, it has initiated to make the platform accessible for local vendors and brands in last six months. The move is aimed at replicating a lucrative model of virtual malls that has helped it to hold over half of the online sales in China.

Alibaba has initially targeted Italy, Spain, and Europe-Asia gateway countries of Turkey and Russia. AliExpress has waived monthly fees for retailers in Spain to attract their business. The company has set a commission of 5%-8% for goods sold via platform.

Source links:

https://www.nasdaq.com/articles/focus-alibaba-undercuts-amazon-in-europe-to-woo-wary-brands-2020-01-07



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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