International

Tencent Follows Amazon Onto Alibaba’s Tmall

Tencent and Alibaba have always had fierce competition in the eCommerce space — usually with Alibaba taking the lead above its trailing counterpart. Now, it appears, Tencent has flipped sides and opened an online shop on Alibaba's Tmall marketplace as one of its newest merchant customers, Tech In Asia reported.

Earlier this month, Amazon announced it was pushing its expansion into China through Tmall. Located in Tmall, Amazon’s new offering is so far a limited number of product categories including imported food, women’s shoes, toys and kitchen equipment. Highlighted items on sale include Crayola crayons and LEGOs. For Tencent, it appears the company will focus on selling more of its electronics side of the business, like its Bluetooth speaker sets or branded tech hardware.

By signing on with Alibaba, Amazon — and now Tencent — have essentially become a merchant customer that will pay Alibaba a commission from each transaction. While Tencent and Alibaba have waged fierce competition against each other, Tencent has focused more toward the gaming and social messaging side with WeChat, whereas Alibaba has focused on growing its eCommerce side.

Tencent has also gone after Alibaba in the past year by teaming up with online retailer JD.com, another direct competitor of Alibaba. And through its WeChat app, Tencent created a payments option, which challenged Alibaba's Alipay. Even when it came to the Chinese New Year Red Envelope tradition, the two rivals squared off to sell the most "lucky money."

Still, despite the competition, this isn't the first time Tencent and Alibaba have come together under one venture. Alibaba and Tencent agreed in February to a rare truce in the taxicab industry and merge their two ridesharing apps to create one product to benefit both companies.

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Click to comment

TRENDING RIGHT NOW