Alibaba has announced a partnership with ecommerce company ecommerce platform Chomp, saying it will use its technology to help merchants and ecommerce sellers compete in China.
The news comes amid increasing competition for market share in China as consumers and businesses increasingly look to shop online.
Alibaba has already built its ecommerce business into one of the largest companies in the country, with more than 20 million merchants.
The deal is the latest step in the company’s expansion into China and could help it compete in a market that has grown rapidly since the country began embracing ecommerce as a way to get products and services at lower prices.
Alibaba CEO Jack Ma announced the partnership on Wednesday, and Alibaba Group Vice Chairman Liu Jieyi added that it is the biggest ecommerce deal in the world.
Alibaba said the ecommerce marketplace will help merchants reach consumers at lower cost, while helping merchants compete with e-commerce giants like Amazon and eBay.
Alibaba has become a prominent player in the Chinese ecommerce market since launching the Alibaba ecommerce service in 2016.
In 2016, Alibaba partnered with Shopify, an ecommerce startup that was valued at more than $200 billion, to create an e-tailer platform that connects merchants with customers through a variety of payment options, including PayPal.
Alibaba, which is valued at $2.7 billion, plans to spend $1 billion this year on ecommerce.
Alibaba will also build the platform, which will use the company-owned Alibaba Cloud Platform, a cloud-based platform that runs on the Alibaba cloud platform, to connect merchants to consumers and sell products to consumers.
“We will use Chomp’s expertise to bring a new level of ecommerce to China and build the world’s largest marketplace,” Alibaba CEO Ma said in a statement.
Ma added that Alibaba would use Chump’s technology to make it easier for merchants to compete with other ecommerce platforms, which include Amazon, eBay, and Shopify.
“By leveraging Alibaba Cloud, merchants can compete directly with the largest ecommerce players by enabling them to scale their business and offer their customers the best experience.”
Alphaso said that it will be partnering with Alibaba Cloud to help the Alibaba Cloud platform connect merchants with consumers through a number of payment methods, including credit cards, cash, and mobile payments.
While Alibaba is a dominant player in China’s ecommerce world, its services haven’t been able to compete in other parts of the world due to the country’s stringent laws and regulatory environment.
The ecommerce giant said that Chomp will use Alibaba Cloud’s technology, which runs on Alibaba Cloud Group’s cloud platform.
This partnership will be a critical step for Alibaba in its growth and success in China, Alphaso added.
A number of Chinese e-retailers have also been looking to scale up, according to Alphasos research.
Last month, e-shopping giant JD.com said it would add a “Chinese ecommerce hub” to its Chinese marketplaces, which the company said would offer shoppers and sellers the opportunity to sell online.