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Through sharp focus on logistics, AliExpress customers get their packages much faster. However, the investments to do so depress the bottom line considerably. Alibaba Group is pushing ahead as it sees Chinese competition intensifying.

AliExpress, and Alibaba Group's other international marketplaces, today deliver seventy percent of orders within five days of ordering. This is due to closer cooperation with sister company Cainiao, an international logistics group.

The number of orders increased by twenty percent.

That promise of fast delivery, made visible to customers with the Choice "certificate," is giving a solid boost to sales in the first quarter of 2024. Sales at the Alibaba International Digital Commerce Group division grew 56 percent to 2.9 billion euros.

Logistics investments did depress the bottom line. The loss (ebita) doubled to half a billion euros.

Alibaba Group faces growing foreign competition from compatriots like JD, Temu and Shein and continues to invest in foreign logistics. The emphasis on this is so strong, it announced today when it released its quarterly results, that the planned Cainiao IPO has been called off. Being part of the Alibaba group allows it to integrate more efficiently with AliExpress and other foreign labels.

Last quarter, the Choice delivery promise of fast delivery (within five or 10 days) was rolled out to 14 new countries.

Alibaba International Digital Commerce Group accounts for ten percent of Alibaba Group's total sales.

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