Amazon aims to serve Chinese consumers to purchase products around the world through its platformsaid Amazon China's Vice President Niu Yinghua to Alizila - Alibaba's news & updates site. Amazon can now tap into the reserves of the largest e-commerce market in the world - China with an estimation of $563 billion this year, which can grow well over $1 trillion by 2018. The U.S retail e-commerce giant will now challenge Alibaba in its own court. Alibaba had earlier shared its plans to open a data center in Silicon Valley much like Amazon Web Services in China. The Battle gets bitter as the U.S online retail giant and the Beast from the East are breaking boundaries to challenge one another. A head-on collision is still in course.
Amazon has opened a shop in Alibaba's largest e-commerce website, Tmall.com Tmall is a virtual market where retailers open shops and sell their products, directly to consumers. Alibaba, which owns Tmall, takes a small share of the income from each product sold, through the website. Amazon which is yet to find its feet in the Chinese market, hopes to turn the tables with the virtual shop launch. Most of the products listed in Tmall are made by Chinese manufacturers and Amazon can capitalize on the "need change" wave by bringing in merchandise which are not available to Chinese consumers till now. Amazon will begin by selling toys, home appliances and clothing. It is planning to sell its imported goods through Amazon China. The goods will be stacked in warehouses in mainland China. Amazon will handle all logistics, from the point of origin to the point of consumption.