Costco launches store on Alibaba’s online Tmall

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American retailer Costco on Wednesday launched a flagship store on Alibaba’s B2C (Business to Consumers) site Tmall.

The retailer has already been selling products in China via the cross-border e-commerce platform Tmall Global, a platform selling only goods approved for preferential trade treatment by the Chinese government, while Tmall has no such restrictions.

Shoppers at Costco waited up to eight hours for water and essentials in preparation for Hurricane Irma on September 5, 2017, in North Miami. /AFP Photo

Costco will continue to sell goods on both platforms, with additional goods of furniture, consumer electronics, and wine on Tmall, on top of the clothing, food, health and beauty goods sold on Tmall Global.

Tmall Global was launched in 2014 and has since become a popular way for international brands to test out the Chinese markets. Costco’s three year’s online selling history with China is also a test before opening a real store in Shanghai.

A screen shot of Costco's online shopping page at Tmall.

The US retailer has confirmed opening a real store in Shanghai, although no exact timeline is confirmed.

According to Costco’s financial performance, the company’s gross profits grew by 4.5 percent from last year. Its test run in the Chinese market has been successful. In 2015, it set a Guinness World Record when it sold 7,238 tons of mixed nuts during the 11.11 Global Shopping Festival, according to Alibaba.