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Tag: Alibaba

  • Alibaba CEO Jack Ma To Leave Post

    Alibaba CEO Jack Ma To Leave Post

    Jack Ma, founder and CEO of Chinese ecommerce powerhouse Alibaba, will soon shed his CEO title, though he will remain executive chairman, and focus on strategic direction of the company, which he founded in 1999.

    Ma sent a letter around to Alibaba employees, which is quoted on the company’s blog:

    As a founder CEO,” Ma wrote in the e-mail, “stepping down as CEO is a difficult decision, for this could be confounding especially for someone of my age who should be at the height of his career.”

    But “at 48 I am no longer ‘young’ for the Internet business,” Ma wrote, explaining that he wanted to make room for “the next generation of Alibaba people (who) are better equipped to manage and lead an Internet ecosystem like ours.

    “I believe that doing what makes oneself happy, staying within one’s own limits and being a good partner to one’s more capable colleagues, is the right thing for me to do,” Ma wrote.

    Ma will officially step down as CEO on May 10. He has been executive chairman as the company has shown impressive growth. The company has yet to choose his successor.

    Alibaba has 24,000 employees, and is valued at $40 billion. Last month, the company announced that it hit $157 billion in annual sales.

  • Alibaba Hits Huge $157 Billion Annual Sales Milestone

    Alibaba Hits Huge $157 Billion Annual Sales Milestone

    Alibaba announced today that its sites Tmall and Taobao Marketplace have combined to surpass RMB one trillion in annual sales, which is roughly equal to $157 billion. It’s not as much as Walmart, but for e-commerce, it’s pretty huge.

    Alibaba gross merchandise volume

    The company hit the milestone on November 30. In a post on Alibaba’s Alizila blog, Jim Erickson writes:

    Speaking on Dec. 1 at a panel discussion in Hangzhou, China, Alibaba Group Chairman and CEO Jack Ma noted that only two companies—Alibaba and U.S. retailing giant Wal-Mart—have ever recorded annual transaction volumes greater than RMB 1 trillion (or the equivalent in U.S. dollars).

    Wal-Mart’s revenues totalled $444 billion last year, so the Alibaba websites—which unlike Wal-Mart do not sell goods directly but act as online marketplaces for millions of large and small merchants—still have some catching up to do.

    But Ma said achieving the RMB 1-trillion mark means Alibaba will this year surpass Amazon and eBay to become the largest e-commerce company in the world by annual GMV (Gross Merchandise Volume, a measure roughly equal to gross sales). “It’s very likely that next year, our transaction volume will be bigger than all the American e-commerce companies combined,” Ma said.

    Total retail sales in China (including brick and mortar) were RMB 18.39 trillion last year.

  • Alibaba Closes Deal With Yahoo Worth $7.6 Billion

    Alibaba Closes Deal With Yahoo Worth $7.6 Billion

    Alibaba has closed the initial repurchase of shares from Yahoo and restructured its relationship with the company in a set of transactions valued at $7.6 billion.

    The two companies announced the plan back in May, which would see Yahoo reduce its stake in Alibaba in stages over time, and over a series of agreements. The initial repurchase of shares represented half of Yahoo’s 40% stake in Alibaba, and was valued at about $7.1 billion.

    Yahoo got about $6.3 billion in cash and $800 million in preference shares in Alibaba, while Alibaba paid Yahoo a one-time cash payment of $550 million “in connection with the amendment of their existing technology and intellectual property license agreement.”

    Under the terms of that agreement, Alibaba has the right to repurchase half of Yahoo’s remaining stake upon a qualifying IPO in the future.

    “The completion of this transaction begins a new chapter in our relationship with Yahoo!,” said Alibaba Chairman and CEO Jack Ma. “We are grateful for Yahoo!’s support of our growth over the past seven years, and we are pleased to be able to deliver meaningful returns to our shareholders including Yahoo!. I look forward to working with Marissa Mayer and her team in our continued partnership.”

    Alibaba financed the transaction with cash, senior debt and issuance of convertible preference and ordinary shares. According to the company, it’s the biggest private financing for a private sector Chinese company ever. The financing was completed at a valuation of about $40 billion.

    Alibaba CFO Joe Tsai said, “Over the past several months we have witnessed significant dislocations in the financial markets driven by global macro events and developments specific to China and the Internet industry. Our ability to raise financing in these difficult market conditions speaks to the strength of our business, our market leadership position and the confidence our investors and financial partners have in the future of Alibaba.”

    Yahoo originally acquired its stake in Alibaba in 2005 for $1 billion and sale of its Yahoo China business.

  • Google And Alibaba Have Android Beef

    Google And Alibaba Have Android Beef

    Acer was set to unveil a new smartphone last week, but the launch was reportedly postponed after Google expressed concerns with the operating system, developed by Alibaba, and apparently based upon Android.

    Google has always painted Android as an open platform, but this philosophy has had its share of critics. That “openness” debate has come back into the spotlight as a result of the Acer phone situation.

    Google’s point of view in this case is that Alibaba’ s Aliyun operating system, while built upon Android, is not compatible with the rest of the Android ecosystem, and that’s a problem, as the company sees it.

    “When we first contemplated Android and formed the Open Handset Alliance, we wanted to create an open virtuous cycle where all members of the ecosystem would benefit,” says Google’s SVP of Mobile and Digital Content, Andy Rubin, in a blog post. “We thought hard about what types of external factors could intervene to weaken the ecosystem as a whole. One important external factor we knew could do this was incompatibilities between implementations of Android.”

    “Imagine a hypothetical situation where the platform on each phone sold was just a little bit different,” he continues. “Different enough where Google Maps would run normally on one phone but run terribly slow on another. Let’s say, for sake of example, that Android implemented an API that put the phone to sleep for a fraction of a second to conserve battery life when nothing was moving on the screen. The API prototype for such a function might look like SystemClock.sleep(millis) where the parameter ‘millis’ is the number of milliseconds to put the device to sleep for.”

    “If one phone manufacturer implemented SystemClock.sleep() incorrectly, and interpreted the parameter as Seconds instead of Milliseconds, the phone would be put to sleep a thousand times longer than intended!” Rubin says. “This manufacturer’s phone would have a terrible time running Google Maps. If apps don’t run well across devices due to incompatibilities, consumers would leave the ecosystem, followed by developers. The end of the virtuous cycle.”

    Alibaba’s point of view is that Aliyn is not part of Android or its ecosystem, so it doesn’t need to be compatible. Liz Gannes at AllThings D shares some comments she received from John Spelich, Alibaba’s VP of international corporate affairs.

    “Aliyun is built on open source Linux,” he’s quoted as saying. “It has our own applications (e.g. email, maps, etc.) Designed to run Cloud apps designed by parties in our own ecosystem It has the ability to run some but not all Android apps. But it is not an Android fork.”

    “It is ironic that a company that talks freely about openness is espousing a closed ecosystem,” he added. “Aliyun OS is not part of the Android ecosystem, so of course Aliyun OS is not, and does not have to be, compatible with Android. This is like saying that because they own the Googleplex in Mountain View, therefore anyone who builds in Mountain View is part of the Googleplex.

    He didn’t stop there. Read Gannes’ piece for the entire thing.

    Rubin, had the following words for Spelich on Google+:

    Andy Rubin

    Hey John Spelich — We agree that the Aliyun OS is not part of the Android ecosystem and you're under no requirement to be compatible.

    However, the fact is, Aliyun uses the Android runtime, framework and tools.  And your app store contains Android apps (including pirated Google apps).  So there's really no disputing that Aliyun is based on the Android platform and takes advantage of all the hard work that's gone into that platform by the OHA.  

    So if you want to benefit from the Android ecosystem, then make the choice to be compatible.  Its easy, free, and we'll even help you out.  But if you don't want to be compatible, then don't expect help from OHA members that are all working to support and build a unified Android ecosystem.


    The Benefits & Importance of Compatibility
    We built Android to be an open source mobile platform freely available to anyone wishing to use it. In 2008, Android was released under the Apache open source license and we continue to develop and in…

    Both parties make reasonable points, but to me, it seems Alibaba will face a pretty big uphill battle in getting widespread adoption of its own ecoystem, in competition with Android and others on the market.

  • Yahoo and Alibaba Make Stock Deal Official

    Yahoo and Alibaba Make Stock Deal Official

    Remember the $7 billion deal we were talking about on Friday with Yahoo and Chinese-based Alibaba? Well, they are making it official. Yahoo has agreed to sell off its shares of the Alibaba empire. A majority will be purchased back by the company and the remained will be sold after the Alibaba IPO, whenever that is.

    The deal was announced formally yesterday in a joint press release. Yahoo currently holds a 40% stake in the Chinese company. 20% will be bought back by Alibaba during the rest of 2012, the other 20% will be sold off at the time of Alibaba’s IPO. The negotiation brings a conclusion to a long dispute between the two parties about what should be done with Yahoo’s controlling shares of Alibaba.

    Ross Levinsohn, Interim CEO of Yahoo comments on the deal being made official:

    “Today’s agreement provides clarity for our shareholders on a substantial component of Yahoo!’s value and reaffirms the significance of our relationship with Alibaba,”

    “We look forward to continued collaboration with the Alibaba team on business initiatives as we explore joint opportunities for growth and benefit from Alibaba’s future. I want to thank Jack Ma, Joe Tsai and the Alibaba team, as well as Tim Morse, Michael Callahan and our Yahoo! team for their dedication in achieving this successful outcome.”

    Jack Ma, Chairman and Chief Executive Officer of Alibaba Group also comments on the deal:

    “This transaction opens a new chapter in our relationship with Yahoo!,”

    “I look forward to working with Ross Levinsohn and the Yahoo! team as Alibaba builds China’s leading e-commerce company. Yahoo!’s global audience reach will provide attractive partnership opportunities for Alibaba to explore markets outside of China. The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future.”

    The deal represents a significant value to Yahoo shareholders. If you remember, Yahoo recently experienced an overhaul in leadership after a bloody proxy battle with investment firm Third Point and activist shareholder Dan Loeb. Yahoo is expected to be making some drastic changes as a result of the battle in the coming months.

  • Yahoo and Alibaba Come to a Compromise Over Shares

    Yahoo and Alibaba Come to a Compromise Over Shares

    Before Yahoo CEO Scott Thompson offered his resignation at Yahoo he visited China several times and met with Alibaba CEO Jack Ma. The two CEOs along with Yahoo’s CFO Tim Morse and legal head Mike Callahan were working out a deal to determine what should be done with Yahoo’s large stake in the Chinese company. Apparently that deal came to somewhat of a resolution before Thompson left the firm.

    The main gist involves Yahoo selling a majority of their shares back to Alibaba, who is currently raising capital for those efforts. It is quite a bit more involved than just the buyback however, Alibaba has plans for an IPO brewing. The deal further requires Yahoo to part with the remainder of their stock in Alibaba after the company goes public. So it’s kind of a half now, half later agreement.

    According to All Things D, Yahoo is holding about a 40% share of Alibaba which is valued at $7 billion. Currently Alibaba is valued at $35 billion, so it is safe to say Yahoo will make some rerun on their investment with the sale.

    Despite the recent shift in power over at Yahoo the deal with Alibaba is still expected to be approved. If you remember, Dan Loeb got his way and with Thompson out of the picture, he is now on the board of directors and Ross Levinsohn is acting as interim CEO.

  • Yahoo Selling Shares to Alibaba

    Yahoo Selling Shares to Alibaba

    Alibaba, China’s largest online business-to-business trading platform, posted Q1 2012 profits of $53.8 million, though Yahoo Inc. is looking to sell a large portion of its shares with the company. Yahoo bought a 40% stake in the platform in 2005, and now Alibaba seeks to buy back some of the ownership, in a deal that could range between $4.8 and $8 billion.

    Last year, Yahoo was reportedly in consideration of getting rid of some of its Asian assets, but a $17 billion deal to sell Alibaba outright fell through. Though, on April 17th, Yahoo CEO and resume padder Scott Thompson asserted that Yahoo was still pursuing a sale, stating, “We are currently exploring a simplified transaction structure which, if executed, would provide greater certainty of closing to monetize a portion of our Alibaba stake.”

    The two companies are again getting close to a deal, in which Yahoo would reportedly sell 15% to 25% of its ownership. Yahoo has declined to comment beyond what was stated on April 17th.

    In related news, a recent poll conducted by Business Insider shows that 80% of those surveyed think Yahoo CEO Thompson should be fired for allowing the board to believe he had a computer science degree.

    scott thompson

    [Via: Business Insider]

  • PayPal Bringing Its Services To China And India

    PayPal Bringing Its Services To China And India

    PayPal is one of the largest names in the online payment industry. It makes it super easy to make online transactions across national borders. Making the transactions with other people within your borders is a bit trickier if you happen to live in certain countries. PayPal is hoping to change that for China and India.

    PayPal announced today their intentions to bring domestic transactions through their service to the people of China and India. Of course, the biggest issue in terms of entry lies with China and PayPal is currently “applying for a domestic payment license” within the country according to PC World.

    China would be a fantastic market for PayPal to enter due to its estimated 193 million e-commerce users. Besides government regulations, PayPal has another obstacle in their way – AliPay. AliPay is the already established e-payment group under the Alibaba Group. AliPay owns the largest share of the online payment market at 46.9 percent.

    This leaves PayPal with quite the challenge when and if they enter the Chinese marketplace. Analysts speaking to PC World seem to agree with one saying that the “competition will be fierce.” In what could be an even larger threat, however, is obtaining the business license.

    Chinese law requires that any online payment system be Chinese owned. Alibaba Group is an internationally owned company so it was required to spin off AliPay into its own Chinese-centric business. What if PayPal fell under the same regulations? Would they create a new company just for China?

    It’s important to note that PayPal operates within Hong Kong. While it doesn’t automatically give PayPal the go ahead for mainland China, it probably is a bargaining tool. The amount of transactions that flow into Hong Kong everyday must entice the Chinese government into wanting PayPal for the mainland.

    Fortunately, PayPal would face no such hurdles in India. While the online payment economy is much smaller in India, it can only go up from here. Research had indicated that 4.5 percent of all retail transactions will be performed online in India by 2016. This leaves PayPal the perfect spot to swoop in and get in on India during its growth phase.

    All of this is just the next step in PayPal’s move to expand beyond their initial offering. They recently announced PayPal Here which is a mobile payment system for small businesses. Just think if PayPal was able to get PayPal Here into China, it would explode.

    The company has also moved into big box retail by offering PayPal Checkout to customers of The Home Depot. The service allows customers to buy products with only their phone number and a PIN.

    It will be a while before PayPal hears back on whether or not they will be allowed to operate in China. We’ll keep you updated on any developments.

  • Alibaba CEO and COO Step Down

    Alibaba CEO and COO Step Down

    According to reports, Alibaba CEO David Wei and COO Elvis Lee have both resigned, following findings of fraudulent activity among thousands of sellers.

    Neither executive was found to be actually involved in the fraud, but the company found a significant increase in claims against particular sellers over the last year.

    In a statement, Alibaba said it "confirmed that Mr. Wei and Mr. Lee and other members of senior management were not involved in any of the activities that led to the claims by buyers against fraudulent suppliers and management made good faith efforts to address the problem," the company said in a statement."However, our board has accepted Mr. Wei and Mr. Lee’s wish that they take responsibility for the systemic break-down in our company’s culture of integrity." (Via Dow Jones Newswires/Wall Street Journal)

    Jonathan Lu, who is the CEO of Alibaba Group’s Taobao, will now run both Alibaba.com and Taobao.com. He said customer growth and robust long-term revenue are both expected.

    Last month, Alibaba announced plans to build a network of warehouses across China, and drive major investment in logistics in that country, with the aim of allowing merchants to meet growing domestic consumption.

    Alibaba Makes Big Investments

     

  • Bing-Alibaba Relationship Stumbles In China

    Bing-Alibaba Relationship Stumbles In China

    It looks like Microsoft isn’t going to defy Google and Baidu and achieve a great victory in China anytime soon.  Three and a half months after it began, a partnership involving Bing and a search engine owned by Alibaba has already ended.

    To be fair, little is known about the situation, and it could have been someone at Microsoft who pulled the plug.  The comments of one Microsoft representative hint that a corporate memo didn’t exactly go around, however.

    Owen Fletcher reported, "Pilot cooperation between Microsoft Corp.’s Bing search engine and Alibaba Group search website Etao has ended, a spokeswoman for a Microsoft joint venture in China said Monday."

    Then Fletcher continued, "The spokeswoman for Shanghai MSN Network Communications Technology Co., a Microsoft joint venture that operates Bing in China, said she was unsure when the cooperation ended and called it ‘uncertain’ whether it would be restored."

    Bing logoThat’s less than encouraging news for Microsoft supporters, since a different representative labeled China "the most important strategic market for Microsoft" in late 2009, and Steve Ballmer didn’t back down during the Google hacking brouhaha.

    On the bright side, Bing remains in beta in China, so it’s not as if Microsoft has already put lots of time and energy into making the venture succeed.

  • Alibaba Makes Major Logistics Investments in Chinese Market

    Alibaba Makes Major Logistics Investments in Chinese Market

    Alibaba announced plans to build a network of warehouses across China, and drive major investment in logistics in that country, with the aim of allowing merchants to meet growing domestic consumption. 

    "It’s clear that logistics is a crucial link in the e-commerce eco-system and in order for Chinese entrepreneurs to reach their future growth goals, this sector needs to develop rapidly in China. It’s also clear that everyone involved in this sector needs to work together to accomplish this," said Alibaba Chairman and CEO Jack Ma. "Hopefully within 10 years’ time, anyone placing an order online from anywhere in China will receive their goods within eight hours, allowing for the virtual urbanization of every village across China. In order to achieve this, we will need to establish a modern, 21st century logistics network."

    Alibaba and its financing partners will commit between US$3.01 billion and $4.52 billion to the initiative, and hopes to spark a grand total of over 15.05 billion in investment from other partners within the e-commerce ecosystem. 

    Alibaba Makes Big Investments

     "Creating a network of warehouse facilities is a key tactic in our strategy to resolve the bottleneck facing the logistics industry in China," said Zhang Wei, Alibaba SVP and head of the company’s strategic investment team.

    "In the other areas of the logistic industry, Alibaba Group will mainly participate through investments aimed at helping our working partners to accelerate their own growth," added Wei. "We very much encourage participation in the logistics industry from members of the investment community. We will work with everyone in an open, dynamic and win-win environment to achieve this important goal of ensuring Chinese merchants are able to get their products to customers as quickly and efficiently as possible."

    The company says usage of its warehouse facilities will be a service available to all, including partners in the logistics industry, Taobao (a Chinese shopping site) sellers, and independent B2C websites.

  • Google Slides To Third Place In Chinese Online Ad Market

    Google Slides To Third Place In Chinese Online Ad Market

    It’s a pretty well-known fact that Baidu’s beaten Google in China, and all of Google’s efforts to reverse that fact haven’t accomplished much.  Unfortunately for the company, those efforts also failed to hold off another rival, as a new report puts Alibaba ahead of Google in the online ad market.

    Owen Fletcher wrote earlier today, "In a breakdown of Chinese online advertising market share, Beijing research firm Analysys International says Alibaba has overtaken Google for second place behind Baidu thanks in large part to its online shopping unit Taobao."

    Then Fletcher continued, "Alibaba now owns a 9.3% market share and the number two spot in China’s online ad market, according to Analysys International (Word doc).  Meanwhile, Analysys says, Google’s share fell 2 percentage points from the second quarter, when it held the number-two spot, to 8.9% in the third quarter."

    For its part, Baidu ended the third quarter with a market share of 30.1 percent.

    Google wasn’t much luckier in the search market, either as its market share fell from 24.2 percent to 21.6 percent while Baidu’s share rose to 73.0 percent.

    That’s bad news for the search giant, which has by and large begun to play by China’s rules since it backed down on its threat to leave the country.  The attraction of 1.3 billion potential users was huge, to be sure, but if Google compromised its morals and fails to make much money, the situation becomes lose-lose.

  • Inside the Google Phonebooth, Apple Refuses to Show “Green” Rank

    Inside the Google Phonebooth, Apple Refuses to Show “Green” Rank

    Today seems to be redesign day. Digg began rolling out its new redesign to all users (follow us here). MySpace introduced a redesign to profiles. In addition to these, UStream unveiled its own redesign with changes to the homepage as well as the dashboard.

    Guardian reports that Apple has refused to allow its iPhone to be included in the UK’s green ranking system, which gives phones a rating of zero to five based on their environmental footprint.

    As you may have heard, Google unveiled a new feature in Gmail today that allows users to make and receive phone calls. In addition to this, Google will be setting up phone booths on college campuses and in airports. Danny Sullivan at Search Engine Land shares a video looking at the inside of the phone booth and talking to the product marketing manager about it:

    According to PaidContent, Alibaba has acquired eBay auction management provider Auctiva. It recently acquired a similar service in Vendio.

    Nick Bilton at the New York Times has an interesting profile of a startup called Stipple, which aims to tag the web’s images. It lets publishers add tags to parts of an image with info about its contents and related links. Launch partners include Six Apart, Jive Records and E.W. Scripps.

    Ian Sheer at the Wall Street Journal has an interesting piece about online coupons and how they’re getting smarter. "Among the new approaches: computer programs to better target consumers with personalized deals and staff on the ground to help merchants," he writes.

    ReadWriteWeb points to a video of Apple SVP of software engineering, Bertrand Serlet, who talks about using Apple’s private APIs.

    According to Guardian, Facebook is now being valued at over $33 billion as investors try to secure a stake in it. Facebook shares are changing hands for up to $76 each, the publication reports. Still, it doesn’t look like there will be an IPO anytime soon.

    Ad firm Specificmedia is being sued amid accusations that it is re-creating deleted cookies, according to Wired’s Epicenter.

    Jeffrey A. Trachtenberg at the WSJ reports that Amazon has lost a big e-book deal with literary agent Andrew Wylie. This comes as the company also announced that its new Kindles are selling faster than any previous models.

  • Alibaba Buys Vendio, Gains 80,000 eBay, Amazon Sellers

    Alibaba Buys Vendio, Gains 80,000 eBay, Amazon Sellers

    Alibaba.com has announced its acquisition of Vendio, a multi-channel e-commerce company offering solutions for small businesses that let them sell through channels such as eBay, Amazon, and their own Vendio-supported stores.

    Through the acquisition, Alibaba is gaining access to over 80,000 targeted small businesses in the U.S. and can direct them to Alibaba’s own Aliexpress wholesale transaction platform.

    Alibaba Acquires Vendio for Aliexpress

    Chris Dawson at e-commerce commentary site TameBay makes an interesting point:

    "The acquisition will also give Alibaba a real insight into eBay and Amazon sales from the Vendio merchants. They’ll be able to mine the data to see exactly what’s selling and for what price from those 80,000 merchants.

    I’m not sure who will be least pleased at the acquisition from a data perspective – Vendio customers or eBay, but one thing is for sure – it’s a good deal for Alibaba.

    "At Alibaba.com, our goal is to make it easier for our customers around the world to do business by providing solutions that increase margins, productivity and competitiveness through e-commerce," says Alibaba CEO David Wei. "We continue to look for synergies and investment opportunities to grow our customer base, acquire additional technology and add new applications that will help our customer base grow and prosper. Vendio is our first acquisition in the U.S. and we are open for more partnership opportunities. The connection of Vendio with Alibaba.com will completely integrate the e-commerce value chain between the B2B and B2C platforms, fully realizing the B2B2C model. I am confident that our complementary businesses will create enhanced opportunities for our customers."

    The acquisition is part of a $100 million investment plan for AliExpress that Alibaba.com announced back in April. However, actual financial terms of this deal were not disclosed. It is expected to close as early as next month.

  • Taobao And Yahoo Japan Partner On Ecommerce

    Taobao And Yahoo Japan Partner On Ecommerce

    China’s top ecommerce website Taobao and Yahoo Japan have partnered to launch two online platforms to cross sell in each other’s markets.

    The partnership will allow Yahoo Japan merchants to list some eight million items in a Chinese-language TaoJapan section.

    Taobao, a subsidiary of ecommerce firm Alibaba group, will offer 50 million products from China to Japanese consumers on Yahoo Japan’s China Mall. The two platforms will launch on June 1.

    Jack-Ma-and-Masayoshi-Son "We are pleased to help Japanese small businesses sell their products to China on our Taobao platform as we believe more choice is a good thing. As a result of this initiative, our respective customers will eventually be able to choose from millions of products from China and Japan," said Jack Ma, chairman and CEO of Alibaba Group.

    "In addition to providing our respective consumers with broader choices, both Alibaba Group and SoftBank also understand the power of e-commerce to change the fortunes of small businesses for the better and that’s why we have decided to create a solution that brings about benefits for both the small businesses and the consumers in China and Japan, and around the world."

    Taobao and Yahoo Japan expect the new offerings will create jobs by helping to increase small business growth through ecommerce and by opening markets for goods and services for domestic merchants by creating access to overseas sales.

    Taobao and Alibaba Japan will jointly operate TaoJapan. Taobao will operate the website and Alibaba.com Japan will act as a fulfillment service provider for Yahoo Japan China Mall.

    Alibaba.com Japan is a joint venture between Alibaba.co and SoftBank Corp.

    "We expect that the Asian economy will continue to grow further led mainly by China and Japan, and that the Internet business and e-commerce business will be the core of that growth," said Masayoshi Son, chairman and CEO, SoftBank Corp, and chairman of the Board, Yahoo! Japan Corp. SoftBank is the largest shareholder in Yahoo! Japan with a nearly 41 percent interest.
     

  • PayPal Lands Alibaba Deal

    PayPal Lands Alibaba Deal

    Earlier this week, Alibaba.com launched a new business-to-business platform, and now, it looks like eBay and PayPal will get a boost from it, too.  It’s been decided that AliExpress will offer PayPal as a payment option.

    This may turn out to be a significant moment for both sides.  Alibaba is a successful ecommerce platform based in Asia, with about 47 million registered users, but of course AliExpress is brand new.  And PayPal is a big moneymaker for eBay, with roughly 84 million active accounts in existence, but Asia isn’t its home market.

    Together, then, it’s possible that they’ll achieve quite a lot.

    David Wei, the CEO of Alibaba, even said in a statement, "Our work with companies such as PayPal is crucial, because we want to make sure we are meeting the needs of our customers by making payment as fast, safe and easy as possible."

    PayPal’s also happy about the move – and looking forward to future developments – as Farhad Irani, Vice President of PayPal Asia Pacific, wrote in a blog post, "We’re very excited to have this fantastic new merchant join the PayPal franchise and I look forward to letting you know about other news out of Asia as it happens."