Wholesale giant Costco Wholesale Corporation (NASDAQ: COST) has announced that it would open an online store in China by using the Alibaba Group Holding Ltd (NYSE: BABA) Alibaba Platform. Due to the decline in sales in North America Costco has decided to enter the Chinese eCommerce market.

In a company statement, Costco said that this online store will carry products that those in mainland China will enjoy. Continuing the Costco’s experience this online store will have branded products and also the “Kirkland Signature” label.

The Executive Vice President of Costco said this in the company statement “Costco sees tremendous growth opportunities in China, especially in light of Chinese consumers’ increasing appetite for imported products”. The are many Chinese based research groups that have evidence that shows and increase of online retail sales in mainland China, which is up almost 46% from a year before.

Costco is excited to be working with Alibaba; Alibaba’s Tmall virtual store will be the payment platform for the Costco store. Both companies in the deal believe that the online store will work, Costco gained exposure due to its Asian presences creating stores in Japan, Korea and Taiwan among others countries in the last year.

This is going to be the second time in which Costco will have an online presence outside of North America; last May Costco created an online platform for customer in the UK. Look for more news on this development in the coming weeks.