Alibaba.com Buys U.S. E-Commerce

The acquisition will give Alibaba access to more than 80,000 U.S. small merchants that use the Internet to buy products, the Hangzhou, eastern China-based company said in a statement yesterday. Terms of the deal for closely held Vendio weren?t disclosed.

Alibaba, backed by billionaire investor George Soros, is challenging U.S. sites eBay Inc. and Amazon.com Inc. for international online buyers and sellers after dominating the e-commerce market in China. Chief Executive Officer David Wei aims to boost overseas revenue to a third of Alibaba?s total, from about 2 percent, he said last year.

The transaction is expected to be completed next month, Alibaba said. Mike Effle, chief operating officer of San Mateo, California-based Vendio, will become chief executive officer of the business, while Vendio CEO Rodrigo Sales will be a strategic adviser, Alibaba said.

The acquisition is part of a $100 million investment plan announced in April for Alibaba?s AliExpress, the Chinese company said. AliExpress is an e-commerce site targeted at international buyers.

Alibaba?s goal is to improve Vendio merchants? profit margin by 30 percent to 50 percent, ?as quickly as possible,? Wei said.

Source : Konaxis

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