Amazon and Alibaba compete in the online marketplace sphere
Alibaba is to China as Amazon is to the US – and the two online shopping giants are facing off.
Wired reports that Alibaba has moved to the US, opening a data center in Silicon Valley, being the first overseas expansion of the Chinese online shopping website. Alibaba “offers cloud-computing services to more than 1.4 million customers via data centers in Hangzhou, Qingdao, Beijing, Shenzhen and Hong Kong,” but hopes to expand into the US market, offering cloud computing to the world in the second half of 2015.
The computing service went live this week for US subscribers, according to Mashable. Their expansion to the US market could also rival that of Apple and Microsoft, as well as Amazon.
As of Thursday March 5, 2015, Amazon.com opened a store front on Alibaba’s online marketplace, called TMall, reports Reuters. The store sells food, toys, and kitchenware, boosting their presence in China’s market. Other large retailers, including Zara and Burberry, have opened stores in TMall for Chinese exposure as well.
Currently, Amazon’s cloud computing services reach one million customers in the cloud market, which is estimated to be worth upwards of $150 billion. As Amazon integrates into Alibaba and the Chinese online retail market, can Alibaba take some of Amazon’s customers in the United States?