Alibaba, China Post join forces for online shopping

news
Nov 22, 20061 min

New deal to ease shipping, payment aims to woo wary Chinese online shoppers

Chinese e-commerce company Alibaba.com has signed a deal with China Post, the country’s postal service, intended to smooth the online shopping experience for Chinese consumers, the company said Wednesday.

Under terms of the deal, Alibaba will offer consumers the option to ship goods purchased online through a service called e-Youbao, which will be operated by China Post, the e-commerce company said. That service is currently being tested, it said.

Besides delivering mail and packages, China Post’s Postal Savings Bank is the country’s fifth-largest bank. Alibaba users will be able to deposit money into their AliPay online payment account at any of China’s 66,000 post offices and China Post’s Green Card debit service will become an AliPay partner.

Alibaba hopes the deal with China Post will woo consumers wary of shopping online. The company estimated that 24 percent of China’s 123 million Internet users — about 30 million people — shop unline. Getting more users to shop on the Internet would be a boost for Alibaba, which operates the country’s biggest online auction site, Taobao.