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Alibaba sells US e-commerce website 11Main to rival OpenSky
[HONG KONG] Alibaba Group Holding Ltd will sell its US website 11 Main to rival online marketplace OpenSky as it adjusts its strategy in niche e-commerce.
Alibaba will hold a "significant" stake in the combined entity, which will help sales for more than 50,000 brands, according to an e-mailed statement Tuesday. The Hangzhou, China- based company didn't specify how much it would own or provide a valuation on the deal.
China's biggest e-commerce operator started 11 Main last year, envisioning a shop-window for small-time US merchants and brands as Alibaba sought to lessen its dependence on its home market. The website wasn't a top priority for the company, which is focused for now on helping US retailers sell to China.
The move may draw attention to the difficulty of cracking the US e-commerce market, which is dominated by Amazon.com Inc and EBay Inc.
OpenSky said on its website it serves more than 5 million members and over 50,000 stores.