Alibaba is expanding its online retail business in Europe by undercutting Amazon sellers' fees to attract vendors, according to a report by Reuters.
AliExpress has had the most success with smaller vendors in recent months, but larger brands - such as Mango and Bennetton - appear to be sticking with Amazon.
Starting its campaign in Spain and Italy, AliExpress has waived monthly rates for sellers in Spain in order to attract their business, while commissions for goods sold are reportedly being set at between five and eight per cent.
London become AliExpress' regional hub back in 2015, as the company tried to market itself as a "gateway to China" for international sellers.
It's a line the vendor has also used for its cloud business. Alibaba Cloud expanded into the European market in 2018, opening datacentres in Germany, France and the UK.
A year later, in its FY2019 Q2, Alibaba's cloud business jumped by two thirds.
With Amazon, professional vendors pay €39 per month plus sales tax, as well as variable closing fees and referral fee percentages ranging from six to 25 per cent.
In 2018, 39 per cent of Amazon's top sellers were based in China, according to analysts Market Place Pulse.
The US giant is also the largest online shopping marketplace in five European markets: UK, France, Germany, Italy and Spain.
Raking in $200bn worth of products, globally in 2019, Market Place Pulse claims that Amazon Marketplace is so large it would rank as the 50th largest economy in the world in its own right.
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