Seeking Alpha

Alibaba introduces U.S. online shop

  • Alibaba (ABABA) has bought its way into the U.S. market, with the launch today of 11Main.com. The website is the first direct-to-consumer U.S. online shop for the company in the United States, and has been developed by two of Alibaba’s wholly owned American subsidiaries.
  • The website will function similar to Alibaba’s China-based TMall, which offers virtual store fronts to merchants who set their own prices and handle their own logistics.
  • 11 Main will handle all payments on the site, and take a 3.5% cut of each transaction.
  • Alibaba is expecting its IPO this summer.
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Comments (5)
  • StockBet.com
    , contributor
    Comments (149) | Send Message
     
    This e-commerce battle between titans should be interesting to see. It's unfortunate that they have the Wal-Mart effect, which is the destruction of small business owners.
    11 Jun 2014, 08:42 AM Reply Like
  • Dantes_Will
    , contributor
    Comments (387) | Send Message
     
    Awesome. Why waste time worrying about hackers and thieves when you can just give all your credit card and personal info directly to the source?
    11 Jun 2014, 09:18 AM Reply Like
  • Terry1
    , contributor
    Comments (112) | Send Message
     
    because the source is smart enough to not steal from their own customers and actually has the experience to outwit the other thieves ?
    11 Jun 2014, 09:34 AM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (427) | Send Message
     
    90 percent of Americans won't have any idea who owns 11Main. It's just a small step from buying 80 percent stuff made in China to buying from a Chinese company. 11Main will not succeed or fail based on these concerns IMHO. Terry is correct, multi-billion dollar corporations steal on a much higher level and have nothing to gain and everything to lose if they do not safeguard your financial information.
    11 Jun 2014, 12:06 PM Reply Like
  • kmi
    , contributor
    Comments (4315) | Send Message
     
    My sense is the Alibaba business model is set up to explicitly circumvent patent litigation and trade tariffs.

     

    I've bought stuff from them. The products are likely not being sold 'in the US' in the strictly legal sense, thus avoiding patent litigation bans, sales tax is likely not being collected, and one wonders whether any customs duty is being levied or paid at all.

     

    It allows for a vastly cheaper price and definitely significantly lower than any US based counterpart can provide.
    11 Jun 2014, 07:19 PM Reply Like
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