American online retailer ShopRunner is to expand into the world’s second largest economy through the help of e-commerce giant Alibaba.

ShopRunner will use Alibaba’s domestic logistics infrastructure to launch in China later this year.

ShopRunner chief strategy officer Fiona Dias says the deal is a low cost way to expand into China.

“There’s a pent-up demand for US goods in China,” said Dias. “Alibaba has this vision that we totally subscribe to in moving to a frictionless global model where consumers can buy from retailers anywhere.”

Alibaba and ShopRunner also plan to create a ‘joint brand’, adding to the former’s three existing online marketplaces Taobao, Tmall and Juhuasuan.

The Chinese giant is one of the backers of ShopRunner, having invested $175 million to take a minority stake. In October 2013, Alibaba also led a $206 million investment in ShopRunner.