Alibaba and China Post, the postal service of the People's Republic of China, have signed a long-term strategic cooperation agreement to "further develop China's ecommerce infrastructure and make it easier for Chinese consumers to shop online."

Under the agreement, the two organizations will cooperate in parcel delivery and money remittance services. In the short-term, China Post and Alibaba.com's online payment platform, Alipay, will launch a new economical parcel service for online purchases called "e-Youbao" and allow customers to fund their Alipay account at any of China Post's 66,000 locations across mainland China, without the need for a debit card or bank account. China Post's Green Card debit service will also become a new partner for Alipay's online payment service.

The organizations say the partnership will leverage China Post's unmatched geographic coverage and strong brand name with Alibaba.com's leading ecommerce platform and online community of more than 40 million businesses and consumers. China Post's Postal Savings Bank also operates China's fifth-largest depository institution after the big four banks, making it an important partner for Alipay.

According to Alibaba's press release, China is the world's second largest Internet market after the U.S. with more than 123 million Internet users, yet only around 30 million, or 24%, currently shop online. This compares with more than 50% in the U.S.

China Post and Alipay have already begun to test "e-Youbao" in China. The parcel delivery service, developed specifically for online purchases, is cheaper than China Post's standard mail service. On November 1st, China Post also opened its first online postal shop on Taobao.com selling stamps and books. This agreement paves the way for further cooperation of this sort in the future.

http://www.alibaba.com