Alibaba aquires California-based Auctiva

Auctiva provides listing, marketing, management tools, image hosting and online storefronts. This offering will strengthen Alibaba’s presence in the US and provide more support to small businesses that are looking to succeed online.

The acquisition of Auctiva follows the acquisition of Vendio in June. The two acquisitions are estimated to have brought in more than 250,000 new customers for Alibaba.com and its wholesale operation AliExpress.

Auctiva’s platform will be integrated with AliExpress, allowing users from both sites to switch between the two platforms. This will enable customers to search for suppliers, acquire merchandise and list products on eBay through their Auctiva accounts. Exclusive promotions and special deals on AliExpress products will be available to Auctiva users.

Alibaba, Auctiva and Vendio will bring together 1.5 million online supplier storefronts. The integration of all platforms aims to increase profit margins for sellers by eliminating the middle-man and addressing the labor intensive sourcing process.

David Wei, CEO of Alibaba.com, said, “Many small business owners never even thought that they would be able to source their products from overseas, as they didn’t have the staff or technological resources to do so."

“With more than 10,000 new users joining Auctiva each month, we are constantly looking for new ways to serve our customers and drive value for them,” added CEO Jeff Schlicht at Auctiva.

The business move is part of a US$100 million investment plan for AliExpress initiated by Alibaba.com in April 2010. Auctiva will operate as a new business unit within Alibaba.com and will retain its own brand name and operations.