Alibaba has wasted no time after its recent IPO filing and has teamed up with ShopRunner to bring American products to China.
Though Alibaba bought a 39 percent stake in ShopRunner last year for $202 million, the partnership between the two companies will officially launch at the end of the year and will allow ShopRunner to tap into Alibaba’s infrastructure to offer Chinese shoppers a variety of American goods, according to Forbes. As the plan stands now, buyers from China will be able to order from American retailers through ShopRunner, and the product will then be shipped to a warehouse in the United States for free. Alibaba will then ship the goods from the United States to China and the buyer will cover the international shipping cost.
Launched four years ago, ShopRunner has ratcheted up the competition with Amazon Prime by offering two-day shipping within the United States and allowing shoppers to purchase goods from over 100 brands, brick-and-mortar retailers, and other vendors, including American Eagle Outfitters, Calvin Klein, Neiman Marcus, and even Toys ‘R’ Us.
There is plenty of room for growth in China for the two companies. According to Alibaba’s IPO filing with the SEC, online shopping accounts for 7.9 percent of consumption in China, and by some estimates, Alibaba already controls 80 percent of e-commerce in China.
Though a number of American retailers are already selling on Alibaba’s Tmall and Taobao platforms, their products get lost among the products offered by the thousands of other retailers. ShopRunner will give the US retailers a chance to stand out and differentiate their products from their competitors.
image source: shoprunner