Still, there's no guarantee of success.
China's middle class is over 250 million strong and growing, spurred by government policy to create a more consumer-driven economy. Apple iPhones and General Motors cars have become big-selling status symbols, but the market remains a challenge for Western companies, especially those lacking a global footprint. Home Depot Inc decided in 2012 to shut all seven of its big box China stores, while in December, Best Buy said it will sell its struggling China business.
And Alibaba's 10-month-old effort to help foreign retailers set up shop in China, Tmall Global - its business-to-consumer website, has had muted success. Of 5,000-plus brands and 650 merchants that now sell on that site, just 30 have accumulated more than 10 million yuan in sales, according to the company.
But there are signs of traction. Costco Wholesale Corp, which began selling on Tmall Global in November, saw sales of more than 40 million yuan in its first month of operations, according to data Alibaba provided to Reuters. And the site has attracted some 90 million unique visitors since launch, buying from 90 percent of listed merchants.
Knowing the name
Part of Alibaba's aim is to counter official concerns about Chinese mega-corporations. In 2014, Alibaba hired former Treasury chief of staff James Wilkinson to help tailor its international strategy, and it has enlisted Korn Ferry to search for a Washington-based international government affairs chief.
Alipay and a logistics-partner network that took years to assemble are central to Alibaba's US effort.
Major brands, such as Nike, that have a large physical presence in China already sell directly on Tmall. But Alipay's effort directly connects American merchants with China, without the need for investment in a physical presence.
It also allows US retailers and Chinese consumers to avoid difficulties associated with foreign exchange. Chinese consumers pay in yuan; US companies get paid in dollars.
Alibaba's and Alipay's program for US companies is called ePass. It includes a customs pre-approval process, a sort of "fast lane" that shaves days off delivery. Daiwa analysts John Choi and Alex Liu call that capability Alibaba's biggest advantage over rivals such as JD.com.
Alibaba and Alipay have made pilot agreements to handle payments and shipping to China for department stores Neiman, Saks, Macy's Inc, Macy's Bloomingdale's chain, Ann Taylor, luxury fashion site Gilt, and apparel label Aeropostale, according to Borderfree. The companies declined to comment, although Neiman, Saks and Ann Taylor confirmed the deal.
If a Chinese consumer bought a pair of shoes from Saks, for instance, Alipay would handle the financial transaction. The shoes go to a US-based Alipay facility that handles the transfer to China. After clearing customs, a local partner typically would handle final delivery.
Alibaba has even taken on a role akin to a cultural liaison for US retailers. Tracey Weber, chief operating officer of online retailer Gilt, said that as their Alipay trial progressed, the Chinese company began increasingly to help with marketing and even product selection: advising them to use more red for instance, or to more prominently display cross-body handbags popular in China.
"It is such a different environment," she said.
Shoprunner, meanwhile, hired an ex-Amazon executive to head up a new Shanghai office last year, and Chief Executive Scott Thompson said the startup is preparing a major marketing campaign in China in 2015.
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