European expansion will not come easily for the Alibaba’s new platform for local brands and sellers, AliExpress. The platform has started a drive to open the site to local brands as it tries to replicate a highly profitable model of virtual malls that have achieved over half of its on-line sales in China.
According to Reuters AliExpress is undercutting Amazon’s sellers’ fees to attract vendors but so far had had mixed results. The initial effort will be in Spain and Italy as well as Russia and Turkey.
