Categories: eCommerceMarketing

Alibaba Pulls US E-Commerce Site

Alibaba plans to pull out of the US online retail market following disappointing returns from its American unit.

The Chinese e-commerce giant has suffered a rare setback in its bid to dominate the online retail space world, and has revealed it will be selling 11 Main after just a year in operation.

11 Main is being sold to fellow online marketplace operator OpenSky, with Alibaba taking a 37.6 percent stake in the latter as part of the deal.

Joining forces

The deal will also see Auctiva, Vendio, and SingleFeed, three other U.S. companies that Alibaba acquired to provide logistics and fulfilment services for 11 Main, folded into OpenSky, TechCrunch reports.

“OpenSky and 11 Main will be joining forces, and we believe together the combined business will be a strong and healthy independent company in which Alibaba will continue to have a significant equity stake,” a spokesperson said in an official statement.

“This joining of forces will help drive sales worldwide and better deliver on the mission to empower SMB brands to reach and sell to consumers,” they added, noting that the combined business will have inventory from 50,000 brands and “millions” of shoppers.

There’s no specific news on the numbers involved in the deal, and whether any jobs with be lost as a result.

11 Main marked an important venture for Alibaba into the US market following its record-breaking $25bn IPO last September, however it seems the site struggled under the weight of too many competitors.

The California-based site launched in June 2014, offering goods in a variety of sectors, including fashion, media and homeware, but failed to gain proper support from Alibaba headquarters, sources said.

All clued up on mobile payments? Try our quiz!

Mike Moore

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

Recent Posts

Apple Sales Rise 6 Percent After Early iPhone 16 Demand

Fourth quarter results beat Wall Street expectations, as overall sales rise 6 percent, but EU…

20 hours ago

X’s Community Notes Fails To Stem US Election Misinformation – Report

Hate speech non-profit that defeated Elon Musk's lawsuit, warns X's Community Notes is failing to…

21 hours ago

Google Fined More Than World’s GDP By Russia

Good luck. Russia demands Google pay a fine worth more than the world's total GDP,…

22 hours ago

Spotify, Paramount Sign Up To Use Google Cloud ARM Chips

Google Cloud signs up Spotify, Paramount Global as early customers of its first ARM-based cloud…

2 days ago

Meta Warns Of Accelerating AI Infrastructure Costs

Facebook parent Meta warns of 'significant acceleration' in expenditures on AI infrastructure as revenue, profits…

2 days ago

AI Helps Boost Microsoft Cloud Revenues By 33 Percent

Microsoft says Azure cloud revenues up 33 percent for September quarter as capital expenditures surge…

2 days ago