According to the source, ShopRunner, whose partners include Neiman Marcus and Nine West, will use Alibabas domestic logistics infrastructure to make its services available for the Chinese customers.
In October 2013, Alibaba paid USD 202 million for a 39% stake in ShopRunner, which sells products from brands like American Eagle Outfitters (AEO.N) and Calvin Klein. ShopRunner offers free 2-day shipping within the US from a variety of stores for USD 79 per year.
Chinese consumers will receive their products 10 days after ordering on the US website and will have to pay shipping costs from the US market, which may amount to 20% of the product price, or as much as USD 10 for a USD 50 item.
American Express (AXP.N), also an investor in Shoprunner, will offer some Alibaba customers complimentary memberships on ShopRunner. ShopRunner has a similar arrangement with American Express in the US.
Check out our Cross-border Ecommerce Research section here for more info on specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation in China.
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