Alibaba, the Chinese e-commerce giant, is expanding its global reach by introducing new services aimed at attracting small businesses in the U.S. and Europe. The company’s business-to-business platform, Alibaba.com, has launched “Alibaba Guaranteed” to provide greater certainty on delivery, payments, and dispute resolution for companies outside of China. This move is part of Alibaba’s growing international business, which also includes selling directly to consumers overseas through platforms like AliExpress. The new service on Alibaba.com aims to provide buyers with more definitive delivery dates and free local returns, addressing the added complexities of international trade for small businesses.
Alibaba.com mostly sells products from China-based suppliers to small businesses in Europe, the U.S., and other parts of the world. The platform allows for purchases of single products or in bulk, but suppliers generally prefer doing business with companies. Over the past five years, the number of buyers on Alibaba.com has tripled, leading to an online gross merchandise value of about $50 billion. Some popular products in recent years include machines for custom printing T-shirts, laser cutting, and car parts for the growing new energy vehicle industry. Zhang, the president of Alibaba.com, noted that the end of the Covid-19 pandemic has driven increased interest in supply chain diversification, which has boosted demand for certain machines and products.
In November, Alibaba.com made an investment in the German business-to-business company Visable and its European marketplace europages. The platform works with many EU-based suppliers selling within the bloc, with the aim of helping the region accelerate its digitalization by utilizing more technology for business purposes. Zhang highlighted that trade activity within the EU is significantly higher than the bloc’s trade with other countries, emphasizing the importance of the EU market for Alibaba.com. In addition to the investment in Visable, Alibaba.com plans to start incorporating artificial intelligence tools on the platform to enhance user experience and efficiency.
Zhang mentioned that there is a growing trend of fragmentation in supply chains, with local businesses in various industries needing to buy globally to safeguard profit margins. He highlighted the popularity of sports products among European customers on Alibaba.com, in addition to the demand for equipment like custom printing machines and car parts. The platform’s new service, “Alibaba Guaranteed,” is positioned to address the needs of small businesses buying from cross-border e-commerce platforms, providing them with more transparency and convenience in their transactions. With the introduction of AI tools on the platform, merchants will have access to features like generating product descriptions with search keywords and providing customer support during off-hours, enhancing the overall user experience and efficiency on Alibaba.com.
Overall, Alibaba.com’s efforts to expand globally and provide tailored services for small businesses outside of China reflect the company’s commitment to meeting the evolving needs of international buyers and sellers. By investing in European businesses and incorporating advanced technologies like AI on the platform, Alibaba.com aims to strengthen its position in the international e-commerce market and support the growth and digitization of businesses in key regions like the EU. With the increasing demand for various products and equipment globally, Alibaba.com’s initiatives are well-positioned to drive further growth and enhance the efficiency of cross-border trade for small businesses.
