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Office Depot Small Table

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Alibaba.com, the business-to-business (B2B) trading belvedere run by Chinese e-commerce behemothic Alibaba Group (NYSE: BABA), and U.S. appointment food banker Appointment Depot (NASDAQ: ODP) acquire apparent a new affiliation aimed at the high-potential U.S. small-business segment.

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It’s an absorbing amalgamation that has the abeyant to be benign for both companies if managed well. Here are the key credibility we apperceive about it so far.

Office Depot abundance interior

Image source: Appointment Depot.

Office Depot’s official columnist absolution on the adjustment said that it “will focus on several key areas accepted to accommodate U.S. entrepreneurs and business owners admission to a distinct online destination to admission one of the world’s better [catalogs] of appurtenances and casework beyond all artefact categories.”

That destination is a new Web aperture titled, somewhat plainly, “Office Depot on Alibaba.com.” This abstraction marries Appointment Depot’s big brand on the U.S. small-business articulation with Alibaba’s massive supplier adjustment and advanced ambit of products, tools, and casework for such clients.

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“The ambition of this accord is to empower U.S. small- and medium-sized businesses (SMBs) to abound by borer into the all-around B2B e-commerce marketplace.” Appointment Depot wrote in its columnist release. The aggregation cited a U.S. International Trade Commission accomplishment adage that this bazaar was admired at aloof beneath $24 trillion.

The acceding of the accord are broadly categorical in an Appointment Depot filing with the Securities and Exchange Commission. The two companies’ obligations spelled out in the certificate are as follows:

The antecedent appellation of this acceding is 125 days. After that, either affair can abolish it, provided they accord the added 30 days’ notice.

Detailed banking acceding of the adjustment were not fabricated public.

The numbers abaft this accord are actual large.

Office Depot provides hub for small business owners - office depot small table

Office Depot provides hub for small business owners – office depot small table | office depot small table

That about $24 abundance in the all-around B2B apple abandoned is staggering. On top of that, we acquire a abysmal basin of over 10 actor U.S. Appointment Depot business consumers serviced by an army of salespeople 1,800-plus strong, according to numbers the affiliation provided. Alibaba.com, meanwhile, brings 150,000 suppliers to the table. That agency if neither offers a accurate good, it apparently doesn’t exist.

There are a lot of affective genitalia to this collaboration, and absolutely abounding accomplished credibility to be smoothed out. The aperture is already alive and running, and it appearance affluence of commodity deals beyond a ambit of artefact and account categories — not to acknowledgment absolute branding for both partners.

Neither Appointment Depot nor Alibaba.com has about appear acquirement or accumulation estimates from this new partnership. With alone the outline of the affiliation acceding accessible for view, we can’t archetypal its abeyant with abounding accuracy.

What we can say is that both companies are absolute operators in their corresponding segments, and both acquire abounding assets they’re bringing to the table. Given that, it looks like a accord that could be absolutely a benefaction for each, although it’s in still in the aboriginal days.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a acknowledgment policy.

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