eCommerce firm Alibaba.com has agreed to acquire Vendio Services, a multi-channel eCommerce company providing a one-stop offering for small businesses that are selling online across multiple channels.
Alibaba said that the acquisition enables it to gain access to more than 80,000 targeted small businesses in the US with potential sourcing needs from suppliers on Alibaba.com’s sourcing platform and AliExpress, a wholesale transaction platform operated by Alibaba.com.
The company said that this acquisition will provide access to e-commerce storefronts and multi-channel selling services for AliExpress customers looking to reach consumers online through the Vendio Platform.
With the acquisition, Alibaba.com will connect AliExpress directly with Vendio through back-end integration, creating an AliExpress tab within the Vendio Platform. This integration allows Vendio users to access a private sourcing experience within their Vendio inventory and sales management interfaces.
From the Vendio Platform, merchants can source products from Alibaba.com’s supplier network and sell through channels such as eBay, Amazon, and their own Vendio-supported store. The platform is offered on Software as a Service (SaaS) cloud-computing model to help businesses increase their sales while managing costs to enhance their profit margin.
The acquisition is part of $100m investment plan for AliExpress that Alibaba.com announced in April 2010. It is expected to close in July 2010. Upon closing, Vendio will become a new business unit within Alibaba.com and will retain its own brand name and operations. Mike Effle, current Vendio COO, will assume the role of the Vendio CEO and Rodrigo Sales, current Vendio CEO, will become a strategic advisor to the company.
David Wei, chief executive officer of Alibaba.com, said: "Vendio is our first acquisition in the US and we are open for more partnership opportunities. The connection of Vendio with Alibaba.com will completely integrate the e-commerce value chain between the B2B and B2C platforms, fully realizing the B2B2C model."
