Who Will Win The Cross-Border Shopping Between Amazon And Alibaba?

As report goes,

Both Alibaba and the world's largest e-commerce companies are preparing for the next big market: cross-border electricity supplier market.

The two companies are tightening up their advantages in pporting goods from abroad to China, the world's largest ecommerce market.

Although both companies have their own unique advantages, the author is optimistic about the Alibaba of China, which is to be held in IPO, New York, for the following reasons:

Amazon recently announced that it will set up a cross border operation center in the Shanghai free trade zone.

Amazon will use these facilities to link Chinese consumers with their global business platform to import goods that are normally sold to other shoppers in China.

These facilities will also serve as China's exports to overseas countries.

And cross border payment centres.

Amazon has been in China for about 10 years, and has Amazon.cn, an e-commerce website.

Amazon has a good reputation in terms of customer service and product quality, but its market share is small.

Observer Solutions, an e-commerce research consultancy, said that in 2013, the share of Amazon's Chinese website in the B2C market was only 2.7%, behind Alibaba's Tmall, Jingdong and Suning Tencent websites.

At present, Amazon China platform Amazon.cn is not connected to the international platform Amazon.com. Chinese users can occasionally use Amazon.com, but they must establish new accounts and use foreign payment and delivery systems.

Amazon's attempt to connect these websites more closely is a good and reasonable move.

Chinese customers know that the company has a huge supply network in the United States, and many people want to buy foreign goods from the company.

This new trend can help Amazon open up huge and growing demand for Western products in China.

In the 2013 report, PayPal and Nelson estimated that the sales volume of China's cross border shopping market will increase from 35 billion US dollars to 163 billion US dollars by 2018, and the number of customers will increase from 18 million to 36 million.

Among the Chinese respondents surveyed, the United States considered the most preferred destination for shopping.

This business may become a big growth point for Amazon, but the company still faces some challenges in its implementation.

Observer Solutions founder Julia Julia (Q. Zhu) said that Amazon's success will depend on how to integrate international businesses with Chinese sales and how to solve pnational delivery problems.

Another challenge is that Amazon's Chinese website has no independent decision-making power. Some Chinese media reports suggest that Amazon.cn lacks autonomy, and important decisions must be made by the US headquarters.

In addition to these factors,

There is also a more important advantage: China has a large market share.

Alibaba is China's largest and most profitable electricity supplier company, controlling 80% of the market.

Amazon's merger with China and foreign businesses will undoubtedly benefit, but efforts must be made to win shoppers' attention.

In February, Alibaba launched Tmall international and entered the cross-border electricity supplier market.

The website has baby food and other baby products, nutrition, clothing and cosmetics and other channels.

Although Alibaba is far inferior to Amazon on the impact of foreign brands, the media coverage of Alibaba IPO will help attract the attention of global retailers.

Last week, Alibaba reported that its operating profit in the second quarter was US $1 billion 100 million, which is 42% higher than that of Amazon and eBay.

Analysts also pointed out that Alibaba's sales of mobile devices were 1 times higher than that of the previous quarter.

With the big brands Burberry and apple stationed in Tmall international, brand influence is no longer a problem.

Ms. Zhu said: "things will change soon, and Alibaba will convene as many brands as possible. If Tmall can sell these products very quickly, it will have an advantage for Amazon, because the Tmall market is huge."