How Alibaba, PayPal Could Affect Ecommerce

Alibaba is considering a proposal to work with PayPal in a bid to expand and increase the amount of payment options available to its customers after the Chinese company recorded a record in the number of sales and revenue during its annual Single’s day promotion.

Alibaba stated that the company sold merchandise worth $7.5 billion within 19 hours of its promotion, breaking the record which was set up last year. The Chinese e-commerce company’s Vice Chairman revealed that the company has already had discussion with Apple Inc. regarding Apple Pay and a possible alliance and is also open to working with PayPal in the future as more and more people are shifting to online shopping with pre-sales on an all-time high.

This success has given even more confidence to China’s largest e-commerce operator as it looks to increase its accessibility to international merchants, which is a part of its global expansion plan to make Alibaba a direct rival of other e-commerce companies such as Amazon. Just 2 months ago, Alibaba had the most successful IPO in the history; the company’s financial affiliate has more than 180 online million customers in over a hundred countries; at the moment things are looking very positive for the investors and the company itself.

Alibaba’s recent success is “single’s day” or anti-valentine’s day, which has now surpassed Black Friday observed in the U.S. and become the world’s most lucrative online shopping day and the most profitable manufactured holiday ever. Even though the company introduces this day in a bid to boost sales by targeting people who are still single, the lucrative offers that are given to public are so tempting that singles aren’t the only one going after the offers; families have also started to shop online on this day to take advantage of generous discounts and promotional offers.

The increased popularity and the high amount of sales have forced Alibaba to consider an internationally reputed credit card company with strong footing to take care of its payments and sales with PayPal at the top of the list. Alibaba is looking to expand its operations all over the globe and with PayPal having a strong international footing the expansion can be quite easier.

Currently Alibaba is marketing itself in various countries including Singapore, Malaysia etc. through online advertisement, videos and social media. Even though Alibaba has its operations in the United States of America, it is facing strong competition from Amazon. Alibaba is of the view that with the help of PayPal, it can continue to impose itself in the fast growing Chinese e-commerce market and cover up its losses it continues to suffer in the United States of America. The market in china is expected to grow by 25% in the next few years from $390 billion in 2014 to around $800 billion in 2017. With more and more brands becoming dependent on holidays and online shopping, Alibaba’s partnership with PayPal might bring a boom for the Company.

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