eCommerce giant Alibaba will open an office in Melbourne by the end of 2016 in a move to expand its presence into Australia and New Zealand.

The world's largest eCommerce company already has a large Australian customer base, and 1,300 Australian brands are also sold through Alibaba's online stores.

Blackmores, a2 Milk, Jurlique, Fonterra and Penfolds are all using the platform, with Wooworths selling their home brand products via Tmall, and Australia Post via the Mandarin-only business-to-business site 1688.com.

The Australian office will help support the Australian and New Zealand companies already on its site, as well as expand its network throughout the region.

Alibaba also has services in digital entertainment, travel, and online payments.  The number of transactions made on its online payment provider AliPay is larger than that of Mastercard.

Group president Michael Evans visited Australia to promote the move, which is now targeting a customer base of two billion.

The online platform is valued at more than US$200 billion.