Alibaba’s international business-to-business (B2B) e-commerce arm, Alibaba.com, unveiled Alibaba Guaranteed for global small and medium-sized enterprises (SMEs).
Alibaba Guaranteed streamlines B2B cross-border trade for SMEs by ensuring supply chain reliability. It offers secure product sourcing at fixed prices with guaranteed delivery within 72 hours.
The platform includes after-sales services, fast refunds, and free local returns, making it easier for buyers.
By fortifying its global logistics services with this new offering, Alibaba is poised to attract more SMEs in the United States and worldwide, aiding these businesses in expanding their global presence.
This move is set to enhance the performance of Alibaba’s Alibaba International Digital Commerce Group (AIDC) segment, currently a primary growth driver, which generated RMB 27.45 billion ($3.8 billion) in revenues, marking a 45% year-over-year growth.
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Alibaba’s revenue growth is accentuated by the introduction of Alibaba Guaranteed as the global logistics market is projected to reach $18.35 trillion by 2032, presenting a 6.3% CAGR between 2024 and 2032.
Augmenting Logistics Services to Bolster Future Trajectory
Alibaba’s roll-out of the Logistics Marketplace, an affordable solution for SMEs in the U.S., emerges as a strategic move. This platform acts as a liaison between buyers and pre-vetted logistics service providers, enabling tailor-made solutions for targeted customers.
The service aims to revolutionize the supply chain strategies of diverse enterprises and mitigate conventional logistical challenges.
In a complementary initiative, Alibaba’s logistics subsidiary, Cainiao, initiated a “consolidated shipping” service in the U.S., reinforcing its international logistics portfolio.
This service consolidates multiple orders from various Chinese e-commerce platforms, allowing expedited deliveries to U.S. consumers in as little as five days via air and sea transport routes.
Enhancing global logistics services is poised to amplify Alibaba’s financial standing in the foreseeable future, as indicated by a projected 6.2% year-over-year growth in total revenues to $138.63 billion in 2025.
Competitive Landscape in the Logistics Sector
Alibaba faces formidable competition in the logistics domain from industry heavyweights such as Amazon, JD.com, and eBay, which are aggressively enhancing their logistics offerings.
While Alibaba’s YTD share performance lags behind its competitors, Amazon’s “Supply Chain by Amazon” service stands out for its end-to-end supply chain capabilities catering to third-party sellers.
JD.com’s logistics arm, JD Logistics, is expanding its global reach with efficient logistics solutions, while eBay’s International Shipping Program broadens its international buyer base.