Alibaba Group Holding Ltd. Buys Nine Percent Stake in U.S. Online Retailer, Zulily

Alibaba Group Holding Ltd. Buys Nine Percent Stake in U.S. Online Retailer, ZulilyQuestions can be raised again on Alibaba's intention to move into the American market as Alibaba Group Holding Ltd. bought a stake of nine percent or more in Zulily Inc., which is an online retailer in the U. S.

The Chinese e-commerce company's stake in the U. S. company, was disclosed in a securities filing which revealed that Alibaba spent $56 million last week buying stocks of Zulily. The shares of Zulily Inc. dropped after it reported a disappointing earnings in the latest quarter.

Zulily, which is an online retailer that is based in Seattle mainly, sells apparel and other products mainly meant for mothers. It also is known for deep discount offers or "flash sales" which usually come with a time limit.

A source close to the matter said that, Alibaba does not aim to buy Zulily complete. Darrell Cavens, the Chief Executive of Zulily said that his company welcomed Alibaba as a shareholder and has a lot of respect for the company.

Alibaba which was formed in 1999 did not have much influence in the global market before its successful $25 billion IPO last year. In recent times, Alibaba has been seen to make small investments in the U. S, to get more knowledge about the market. It is also helping various companies in the U. S. to reach customers in China.