Amazon targets the Chinese market through the Alibaba

Amazon opened its own digital storefront on Tmall Friday. Tmall is an Amazon-like site owned by one of China's largest internet companies, Alibaba.

Unlike Amazon, Tmall is more of a virtual mall where different stores set up shop and sell products to consumers directly. Tmall then takes a cut of each sale. Amazon, on the other hand, mainly makes money through buying and re-selling merchandise, much like a retailer.

By opening a store on Tmall, Amazon is hoping to expand its presence in China and augment its existing, regional Amazon China business. Most of the merchandise on Tmall is made by Chinese manufacturers, so Amazon has a good opportunity to offer goods that Chinese customers may not have access to. (vg.hu)