Alibaba’s Tmall Reportedly Punishing Retailers Who Won’t Sign Exclusives

Five major U.S. retailers who sell on Alibaba’s Tmall marketplace have run into headwinds when they refuse to sign exclusive agreements with the Chinese ecommerce giant, according to a report from CNBC.

Executives from the five major brands – all of whom refused to be identified publicly for fear of further reprisal – said traffic to their Tmall storefronts fell significantly after deciding against exclusive partnerships.

All of this comes against the backdrop of the Trump administration’s efforts to gain a better agreement with China that would lessen the huge trade imbalance, and an ongoing “cat and dog fight” between Alibaba and main Chinese rival JD.com.

Alibaba has denied the allegations, saying it’s standard practice to strike exclusivity deals with retailers.

“Alibaba and Tmall conduct business in full compliance with Chinese laws,” the company said in a statement to CNBC. “Like many ecommerce platforms, we have exclusive partnerships with some of the merchants on Tmall. The merchant decides to choose such an arrangement because of the attractive services and value Tmall brings to them.”

JD.com claims 100 Chinese brands defected to its platform last year due to pressure from Alibaba, a figure the latter has questioned.

You can read the rest of the story here.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.

Leave a Reply

Your email address will not be published. Required fields are marked *