Pragmatism triumphs

Strange bedfellows: Amazon sets up shop on Alibaba site

Amazon.com has opened an online presence on rival Alibaba’s Tmall superstore, according to Reuters and other outlets citing an Alibaba spokesman.

[company]Amazon[/company] and [company]Alibaba[/company] are both prodigious online retailers and rivals and both are eying the other’s turf. Earlier this week Aliyun, Alibaba’s online services arm, opened a cloud data center in Silicon Valley, its first presence in the U.S. Aliyun is seen as a competitor to cloud giant Amazon Web Services.

I’ve reached out to both Alibaba and Amazon for further comment and will update this story as needed.

Other western companies, including Costco, Burberry and Zara parent company Inditex, have also set up shop on Tmall, which runs the ecommerce sites and provides the associated payment-processing operations.

Amazon.com offers its own ecommerce site in China, but Alibaba is the 800-pound gorilla there and it makes sense for Amazon to set up shop on Alibaba’s Tmall if it wants to sell more stuff to Chinese citizens.  Long live co-opetition I guess.