U.S. warehouse retailer Costco (NYSE: COST) has announced it is expanding into China through e-commerce giant Alibaba. 

Costco will enter the huge Asian economy for the first time on Alibaba's website called Tmall, which is one of China's largest online marketplaces.

The company said it would take orders through the online store and serve them through its US-based warehouses.

Initially, Costco's online store will provide a range of goods including food and healthcare products, as well as the entity's private label Kirkland.

Costco is the third-largest U.S. retailer in terms of revenue, after Wal-Mart Stores (NYSE: WMT) and The Kroger Co. (NYSE: KR) according to the National Retail Federation. The company operates 644 warehouses throughout the world.

Costco has as yet not announced any intention to open up a warehouse in China.

Alibaba operates in the Chinese online-retail sector through two marketplaces - Taobao Bazaar and T-Mal - which connect buyers and sellers.

"Costco sees tremendous growth opportunities in China, especially in light of Chinese consumers’ increasing appetite for imported products. We have chosen a great partner, Alibaba, for the official launch of Costco's Flagship Store," Costco executive vice president Jim Murphy said.

"Our Tmall Global flagship store will give Chinese online shoppers a channel to purchase directly from Costco."

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