Alibaba opens up new opportunities for merchants in the US with its new financing tools and trade shows.
The Chinese e-commerce company is settling its roots in American soil with new financing features. North American and European president of Alibaba.com, John Caplan, announced the new tools in a press briefing. Included in the briefing is the announcement that the United States is currently the fastest-growing Alibaba.com market. U.S buyers have increased by 70% and transactions with businesses in the US have increased by 100%.
New financing tools for US merchants
Alibaba aims to strengthen the trust between the buyers and the suppliers and has integrated the pay later capability for its merchants. The partnership with the online lending platform Kabbage allows small business buyers to borrow financial assistance and for the suppliers to be paid for much quicker. Late payment is one of the major challenges that many suppliers are facing but with the pay later capability, that distrust is taken out from the equation.
This problem is apparent from the $3.1 trillion gap in outstanding receivables based on PYMNTS calculated’s recent survey of 1,000 small businesses based in the US. This financial gap places too much burden on the side of the suppliers as they too depend on the payment sent by the buyers. This feature was more for the benefit of the suppliers. This year’s new financial tool is for the buyers.
Alibaba.com implements a new payment term enabling buyers to have a 60-day grace period before paying for the items that they’ve purchased. Most small businesses can’t take full benefit of the global supply chain as other cross-border commerce needs upfront payments. Especially with the pandemic, small businesses do not have enough capabilities to do quick payments.
Invite-only trade shows
Another new feature is the tradeshows for B2B sellers and wholesale buyers. The US Online Trade Shows will be real-time events with qualified Is manufacturers, brands promoting their products and services, and wholesalers. Small businesses can connect with suppliers. Entrepreneurs will have the chance to learn from industry leaders as they present their thoughts and insights. It’s a good platform to discover products.
What does this mean for you?
The financing tool will allow your business to thrive in this time of the crisis and this will open new business opportunities, especially with cross-border buyers or wholesalers. As for the trade shows, it may be a platform where you can present your product and promote your brand to wholesalers, buyers, and to other entrepreneurs. It’s a pool of verified buyers and targeting buyers is always a good idea to expand the business.