According to the agreement, Yahoo Japan will list several products on Alibaba’s online market, Tmall. These products include various items ranging from cosmetics to general household items. Exports and custom processing will be handled by both Alibaba and Yahoo Japan. The products will be displayed on locations of the website, which are noticeable to customers. The companies will be required to pay only one-fifth of the usual cost to sell their product on Tmall.
China has a huge ecommerce market worth nearly USD 400 billion. This is almost five times the size of the Japanese market. Alibaba dominates the Chinese online market, with a 60% market share. Additionally, teaming up with Alibaba will also help the company in establishing a customer base in China. Yahoo Japan will be able to use Alibabas logistics system to enter the Chinese market, without the need to build a network from scratch. The deal will also provide access to Alibaba’s customer base, which amounts to nearly 350 million users.
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