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China’s NetEase Attacks Alibaba With New Cross-border Shopping Website

Chinese Internet portal NetEase.com announced the public testing of its cross-border e-commerce platform Kaola.com, which currently provides maternal and child products, food and health care products, cosmetics and personal care products, and overseas direct mail service.

New users can directly login to the website with their NetEase accounts. The definite date for emergence from the beta testing has not been released.

Kaola.com launched two models: bonded zone delivery and overseas direct mail. With bonded zone delivery, products will be purchased via centralized procurement and stored in bonded warehouses in China. Users will be able to receive the goods in less than three days after order placement. With overseas direct mail, products will be shipped by overseas certified vendors and consumers can receive goods in seven to 30 days.

This new website marks NetEase's latest attempt to gain traction in the e-commerce sector. In September 2012, NetEase launched Huihui.cn, which offered advertising solutions for B2C and C2C partners. In December 2012, the company launched an Internet sales platform for health and nutrition products.

Kaola.com more importantly is a direct response to Alibaba's latest moves to entice buyers both outside of China to purchase goods in China and for buyers in China to purchase goods from international sellers who ship goods to China.

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