Dive Brief:

• Alibaba is folding up its U.S.-based e-commerce operation 11 Main and merging it into New York-based social marketplace OpenSky, according to reporting by TechCrunch.

• In the process, Alibaba is taking a 35% stake in OpenSky, which also features logistics companies (and Alibaba U.S. properties) Auctiva, Vendio, and SingleFeed.

• There have been or will be several layoffs at 11 Main, TechCrunch has learned but not yet confirmed, and it’s unclear whether 11 Main will survive as a brand.

Dive Insight:

Alibaba has invested loads of money in several U.S. startups, notably promising companies like Snapchat and Lyft. It’s also recently invested in flash-sale site Zulily, in a move signaling confidence in a company that has faltered a bit recently. 

But the e-commerce giant hasn’t really gained much traction with a marketplace here; 11 Main was hardly a household word and likely didn’t have much of a chance in a market dominated by Amazon, eBay, and in its own quirky niche, Etsy. Still, OpenSky appears to have much potential and has attracted funding. 

But e-commerce in the U.S. may be maturing, considering how many brick-and-mortar retailers have robust e-commerce operations, so, even with Alibaba's global power, there may not be whole lot of room for larger pure-play e-commerce marketplaces here.