Jack Ma-led online retail giant Alibaba’s marketplace AliExpress will start selling Chinese goods to Indian consumers from June through mobile wallet company Paytm.
In February, Alibaba, through Ant Financial Services, had acquired 25 per cent stake in One97 Communications, the parent company of Paytm. With the launch of the service, Alibaba will get an entry into the booming Indian e-retail market.
AliExpress, launched in 2010, is the global marketplace of Alibaba and it lists Chinese businesses offering products to international online buyers.
In the first phase, AliExpress, through Paytm, will bring fashion products, fashion accessories, general merchandise such as Chinese toys, bags, home decor and unstructured category, including electronic accessories to Indian consumers.
“We want to connect Indian consumers with the Chinese sellers and give an opportunity for them to buy Chinese goods directly. These products will be listed in Paytm and buyers will be made aware that they are buying from AliExpress through Paytm. AliExpress has a lot of sellers online,” said Sudhanshu Gupta, General Manager, Marketplace, Paytm.
According to the company, the payment can be made only through Paytm wallet. The delivery of items will be done to the consumer directly. “The delivery time may wary from 15 to 30 days. If customers opt for a delivery charge then we would be able to make delivery faster,” added Mr. Gupta. Currently, both the partners are conducting certain trials on the working model. On Paytm, the Chinese products will be priced in Indian rupees.
Paytm, which launched its market place business in February last year, said its present run rate gross merchandise volume is around $1.5 billion and has an active user base of 30 million. Of the total business, 95 per cent of orders are from unstructured categories, which accounts to 60 per cent of the Gross Merchandise Volume (GMV).
Update: Paytm said, "Cooperation between Aliexpress and Paytm is still in early discussion, and there is no confirmed launch date yet."
