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Paypal Cooperation Termination with AliExpress Redefines Chinese B2B Platform Development

Consumers world wide will soon not be able to pay for their purchase on AliExpress via Paypal. PayPal, which was acquired by eBay in October 2002, has announced that they will end its cooperation with AliExpress from August 3, 2011.

Till now, there is no detailed reason disclosed by Paypal for the termination. But from Alibaba’s point of view, the reason is because the rapid development of AliExpress affects eBay’s further development in China.

This decision undoubtedly gives Alibaba a heavy attack. There are over 220 million people in 190 countries and areas using this payment solution to make purchase because of its powerful brand advantage, fast money transfer and high security guarantee. The growth of ApliExpress’ Internet foreign trade will unavoidably affected since they are going to lose an influential tool for their foreign market expansion.

However, Paypal’s decision offers once-in-a-century challenges and opportunities for other B2B platforms in China which are similar to AliEXpress. Just like this Chinese online shopping platform giant, these sites also could offer wholesale prices on the smallest orders, one item minimum order, secure escrow buyer protection, and express delivery with full tracking.

What’s more, these Chinese AliExpress competitors like DHgate, Beltal, and Made-in-China could offer more consumer-friendly policies like fast money transfer and low transaction charge. They have kept a good relationship with Paypal. Most of them have longer cooperation with this world famous payment solution provider than Alibaba which only began on April 27, 2010. For example, Beltal belongs to the first B2B platforms which started their cooperation with Paypal in 2003 and they won “Best Risk Control Reward.”

According to industry news, more and more clients steer their attention from AliExpress to other Chinese shopping platform. Small number of Chinese online sourcing and internet shopping websites has received more orders since Paypal’s announcement. And the number is still growing. All B2B platforms in China spare no pains to take advantage of this god-send chance to prove themselves and try their best to attract more buyers.

Paypal’s cooperation termination with Alibaba redefines the development of B2B platforms in China. Alibaba’s dominance is breaking. Excellent platforms now get their good timing, geographical convenience and good human relations to win or stabilize their place in the B2B battlefield.

Linda is a blogger and internet marketing experts. In 10 years, she has optimized tens of websites for different B2B or B2C companies. She likes mountain climbing, sing, shopping, playing tennis, and so on. Her motto is no excuse for failure, only the action for success.

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