Alibaba is reportedly establishing an online shopping venture with South Korean retailer E-Mart.
The two companies are set to combine the assets of their respective online platforms, AliExpress Korea and Gmarket, to form a 50-50 joint venture, The Wall Street Journal reported Thursday (Dec. 26), citing a regulatory filing.
The joint venture will launch next year, with the two platforms operating independently, the report added, citing a statement from E-Mart parent Shinsegae Group. Shinsegae Group said it expects cooperation with Alibaba to help bolster its Gmarket services and customer experience in the competitive eCommerce space.
A separate report on the venture from Bloomberg that cited unnamed sources said Alibaba and E-Mart could create a new eCommerce unit valued at about $4 billion.
The news came about a month after Alibaba announced it is merging its domestic and international eCommerce businesses into one unit. The new Alibaba eCommerce Business Group combines the company’s Taobao and Tmall Group and the Alibaba International Digital Commerce (AIDC) Group.
“The eCommerce industry in China and around the world is entering a new era, and the global supply chain capabilities, fulfillment capabilities and consumer service capabilities will determine the future competitive landscape,” CEO Eddie Wu wrote on the company’s intranet.
Alibaba last year announced it was dividing its business into six separate units, the largest change in the company’s 25-year history.
In other eCommerce news, Mike Hanson, vice president of banking, financial services and insurance at Quantum Metric told PYMNTS this week about the rise of payment testing among consumers.
“Payment testing has become mission critical for any retailer that wants to drive an impact on customer experience and brand loyalty,” Hanson said, adding the average consumer now visits a page two to three times before making a purchase. “Retailers who ensure that their checkout pages are optimized ahead of peak sales will see the best conversion rates and customer satisfaction scores.”
Interviewed at the end of the holiday season, Hanson added that retailers should go beyond getting ready for one busy shopping day and focus on a consistent, frictionless checkout experience year-round.
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