Get All Access for $5/mo

Alibaba's Opening an Online Store With Office Depot, as the 2 Companies Work to Beat Out Amazon The companies hope to win over American business owners with the convenience of a one stop shop, melding Alibaba's global platform with Office Depot's U.S. experience.

By Kate Taylor Edited by Dan Bova

Thomas Trutschel | Getty Images

Office Depot is teaming up with Chinese ecommerce giant Alibaba, as both companies hope to benefit from the other's strengths to win over American small-business owners.

On Monday, Office Depot and Alibaba.com announced a partnership aimed at American small- and medium-sized business, tapping into the business-to-business, or B2B, market in the U.S.

The two companies are launching a co-branded online store, as well as collaborating on revamped customer support, distribution and fulfillment options. American businesses will have access to a new sales channel to sell their products globally through Alibaba.com.

Office Depot and Alibaba hope to win over business owners with the convenience of a one stop shop, melding Alibaba's global B2B platform with Office Depot's American experience.

"I think there is not a clear, trusted, friendly source for small businesses today," Office Depot CEO Gerry Smith told Business Insider. "We're not going to go private brand people, we're not going to scrape customer data. We're going to provide a platform for them to be successful."

Ecommerce and B2B have becoming increasingly important to Office Depot's business since Smith took the reigns at the company in 2017. Since Smith took over, Office Depot's B2B business has grown to 61 percent of Office Depot's business, up from 49 percent. Smith said that he hopes to grow the figure in the years to come.

Meanwhile, Office Depot's 1,350 American stores offer a different advantage for Alibaba.

"Office Depot has an amazing brand that's trusted by small business here in the United States. ... Just about every business in the United States has a relationship with Office Depot," said John Caplan, Alibaba Group's head of North America B2B.

In China, Alibaba has been doubling down on the omnichannel experience, melding online and offline business with projects such as the tech-heavy grocery chain Hema. The Office Depot deal allows Alibaba access to brick-and-mortar locations, 20 years after the company launched Alibaba.com in the U.S.

Globally, the B2B ecommerce business is a $23.9 trillion proposition, according to the U.S. International Trade Commission. And, ecommerce giants such as Alibaba and Amazon have been eager to cash in.

Sales through Amazon Business, the company's B2B marketplace, hit $10 billion on an annualized basis, the company announced in 2018. By 2021, that figure should exceed $25 billion, according to Baird Equity Research.

At the same time, some companies that sell product through Amazon Marketplace have complained about Amazon acting as both a marketplace and a competitor and, at times, elevating its own products over third-party sellers.

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Franchise 500 Annual Ranking

50 Franchise CMOs Who Are Changing the Game

Get to know the industry's most influential marketing power players.

Thought Leaders

6 Tips From a Clean Beauty Entrepreneur

Sarah Biggers went from a newbie in the natural beauty space to a pro in just a few years. Here are six things she wishes she'd known at the beginning.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.