Alibaba invested $206 million last year in U.S.-based ShopRunner, which will offer Chinese customers direct delivery to China of goods purchased from U.S. websites. The service costs $79 a year for U.S. customers and includes unlimited two-day deliveries from retailers like Neiman Marcus and Lord & Taylor.
Chinese customers have been reluctant to purchase high-end merchandise from in-country websites where the goods are steeply discounted. The merchants are concerned that the low prices will compromise their high-end brand images. When Chinese consumers pay the same price as American consumers, they believe they are getting authentic brands, not inexpensive knock-offs.
The deal announced today with SingPost will result in a joint venture that will provide logistical support for international online sales. Alibaba’s chief operating officer is cited in The Wall Street Journal as saying that SingPost’s “strong delivery networks and end-to-end e-commerce logistics solutions” will help the Chinese Internet retailer “facilitate international e-commerce.”
Alibaba has struck a similar deal with Australia Post to help Australian retailers sell and deliver goods in China. The Chinese firm is angling to expand its Taobao online marketplace into markets with large Chinese populations, such as Hong Kong, Taiwan, Singapore and Australia.
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