The major problem that Alibaba will encounter is competition, there are so many companies like Alibaba in the U.S market, European market, and the MiddleEast. Though Alibaba has the advantages of low price and abundance of commodities. But that’s not sufficient for it to switch the habits of Western nations, especially in a country like America, where there are stiff competitions.
Another Problem is counterfeit goods, one other issue that will plague Alibaba is the presence of counterfeit products. Although the problem has been improved greatly over the recent years, it has however made a negative impact on Alibaba’s brand and image in the international markets.
One other key aspect, is in the area of regulations and standards, will their products meet up with the American/European standards for import goods, because when products don't meet up to the standards set by the regulatory bodies, such product won't be allowed into the country, and this will certainly infuriate buyers who have paid for products.