Ecommerce News

Alibaba Launches New Sales Channel For Overseas Users

Alibaba is China’s-an arguably world’s- largest eCommerce company. Its three main sites, Taobao, Tmall, and Alibaba.com, have millions of users, merchants, and businesses. Alibaba made $248 billion in a transaction last year, which was more than Amazon and eBay combined. After raising $25 billion from its IS IPO, Alibaba became also one of the most valuable Chinese public companies. For years, the fastest growing eCommerce platform was chiefly a domestic operation, but recently, Alibaba launched new sales channel for overseas users.

Alibaba’s new service, Tmall World, will enable overseas users to buy goods from the biggest eCommerce platform. The largest eCommerce platform is committed to providing solutions for logistic, payment, and localization support. The $15 billion investment will be used to develop its data technology and improve the warehousing and delivery development in the course of five to ten years. The new sales channels’ goal is 100 million Chinese citizens living overseas. The users have to own an active Chinese payment method to purchase goods. Alibaba’s payment affiliate, Ant Financial, is also expanding quickly in the same region through joint ventures and investments. The company has inked deals many Southeast Asian countries and even rebranded Lazada Group’s payment branch, Hello Pay, into its own Alipay brand.  Alibaba’s new sales channels in Malaysia, Singapore, Hong Kong, and Taiwan show an effort to accelerate its push towards reaching two billion global consumers by 2020.

Alibaba’s courier, Cainiao, will set a logistic eCommerce hub at Kuala Lumpur International Airport as a part of the duty-free zone. The next step is the world’s fourth most populous nation and most promising market in Southeast Asia, Indonesia. Lazada will certainly help Alibaba to conquer that market as it runs about a dozen of warehouses and B2C distribution centers. But, Alibaba’s focus goes beyond Indonesia. Its goal is also Australia and New Zealand.  Alibaba’s Tmall and Tmall Global already have 1,300 Australian and 400 New Zealand brands and tend to continue expanding.

It seems that Alibaba’s $1 billion acquisition of Lazada Group started to pay off, according to the latest financial results of the eCommerce platform. Alibaba’s third-party sellers succeeded reaching Lazada’s active users across Southeast Asia. In the fiscal fourth quarter, Alibaba reported a record 60% increase in revenue to $5.6 billion. And this set its goals higher – the platform is expected to reach 50% increased annual revenue growth from its international retail effort. The collaboration with Lazada brought Alibaba to 560 million consumers in Indonesia, Malaysia, Singapore, Thailand, and Vietnam. Earlier in 2017, Lazada introduced Alibaba’s Taobao bazaar to Singapore via an eCommerce know-how and technological expertise website. Their collaboration also resulted in an online loyalty and services program that offers UberEats and Netflix along with free Alibaba’s Taobao and Redmart deliveries.

In the next five to ten years, Alibaba will sharpen its focus on international eCommerce growth and bring more Chinese brands products around the world. One thing is sure – soon, Alibaba will take over the global online commerce and become an attractive option for small businesses worldwide to enter the giant Chinese market.

Leave a Comment