Some people view Amazon’s move to open an online shop on Alibaba’s Tmall as a sign of defeat. In fact, while both companies could benefit, the significance of the move is likely to be small.
“The company is widely considered to have failed to achieve the type of success in that market that investors are accustomed to from Amazon,” Citigroup writes in a note to clients.
Amazon gets 60 percent of its revenue from outside the United States and is a market leader in many countries, except for China, where it only holds a market share of 1.3 percent, according to China Internet Watch.
By opening an online portal on Tmall (with a market share of 57.6 percent), Amazon will pay Alibaba commission to sell its products there.
It appears that Amazon is focused on making it successful.
