Warnings of Alibaba’s effect in US issued by US retailers

Warnings have come from several large US retailers that local companies may be “decimated” by Alibaba, unless online retail tax loopholes are closed by Congress.

They chose to focus on the Chinese company even before it has had the chance to establish their presence in the American consumer market.

The Alliance for Main Street Fairness, which comprises of JC Penney, Target, Best Buy and several other major chains, called for Congress to put an end to special tax treatment for online giants, such as Alibaba. 

This call for action was presented via radio and TV ads over the weekend, which marks one of the largest public campaigns against the Chinese company, which is responsible for e-commerce transactions in excess of what both eBay and Amazon make.  Alibaba only became known to the American market after it went public in the largest-ever IPO in the world, during September.

Industry analysts and US retailers are expecting Alibaba to launch a service specifically targeted at US consumers, with the help of its IPO horde.

The company, however, has stated that it will continue to place its primary focus on the market in China as that is where it earns most of its income.  It states that the increase of its online presence and wealth will give assurance that its home market will remain its main growth driver in the future.

Alibaba currently handles American sales via AliExpress, its global retail service.  Its main Taobao service, which has been compared to eBay, is not available to US customers in the English language.

Representatives of Alibaba in the US have not responded to requests for their comments.

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