Internet retailers Amazon.com, Inc.(NASDAQ:AMZN) and eBay Inc(NASDAQ:EBAY) are facing competition from Chinese retailers specifically the Alibaba Group that is expected to surpass both the U.S. companies this year in terms of value of transactions.
Alibaba's Chief Strategy Officer, Zeng Ming told reporters on Saturday that the e-commerce firm is planning to sell merchandise worth $473 billion or 3 trillion yuan from its Taobao units in the next 5 to 7 years.
Last year Alibaba founder Jack Ma had said that sales from Taobao, which is the group's main cash cow, would reach 1 trillion yuan in 2012. However there were no details as to what percentage of online sales come from the units.
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"From their annual reports we did a rough calculation and we were similar last year but we are growing faster than them this year, so this year we are probably larger than them," Zeng said of Amazon and eBay, America's top online retailer and auction site.
"The gap is just going to get bigger and bigger when we grow faster," he said.
Earlier this year in May Alibaba managed to buy back a significant stake held by Internet portal Yahoo, after more than two years of wrangling.
The between Alibaba and Yahoo! Inc.(NASDAQ:YHOO) involves a listing for the Chinese e-commerce company by the end of 2015, though the company has said there is no timetable for a listing.
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