Chinese firm Alibaba will launch a US B2B e-commerce platform in the US by the end of the year, CEO Jack Ma said at a business conference yesterday.
That means new competition for Amazon (AMZN), eBay (EBAY), and Walmart (WMT), which make a significant amount of money from third-party sales.
Alibaba launched its platform in Europe earlier this month in a bid to expand internationally.
The platform is currently in a testing phase, but will be based off of the Ali Express site that is currently live.
Alibaba has demonstrated it knows how to operate an e-commerce service open to third-parties. The company earned $250 million in revenue during the first half of this year, so some may view it as a more dangerous threat than Walmart even despite Walmart’s brand recognition in the US.
Alibaba also operates China’s largest auction site Taobao. It could potentially launch an auction business as well, in a direct threat to eBay’s marketplace.
Currently Amazon has about a 14% share of the US e-commerce market with eBay following at 6%.