Ok, Ecommerce we know is hard for the little guy but even the giant’s can be undone. TechCrunch reports 11 Main – Alibaba’s US ecommerce site – is closing:
Up to now, OpenSky has disclosed nearly $50 million in funding with backers including Highland Capital, Providence Equity, Canaan, The Raine Group and Ron Conway. Not been too shabby with fundraising, although as companies like Fab.com have shown us, you need a lot of capital to get e-commerce businesses off the ground, and even then there’s no guarantee they may work.
It’s a business of scale and gaining customer loyalty; something the Chinese company have failed to achieve anywhere close to their home market. Whether OpenSky is a good investment is another question; sites like these will typically find it hard to compete against Amazon and Retailers that have a direct relationship with the consumer. (just ask Ebay)