Alibaba’s international business-to-business (B2B) e-commerce arm, Alibaba.com, has unveiled Alibaba Guaranteed to cater to global small and medium-sized enterprises (SMEs).
Alibaba Guaranteed serves as a platform simplifying B2B cross-border trade for SMEs, ensuring supply chain reliability. The platform offers secure sourcing of products at fixed prices, with a commitment to delivery within 72 hours.
Additionally, Alibaba Guaranteed provides after-sales services including quick money back and free local returns, enhancing the buying experience for consumers.
With this latest innovation, Alibaba has reinforced its global logistics services, aiming to propel forward by capturing the attention and trust of SMEs not only in the United States but around the world, empowering these enterprises to expand their global footprint.
The launch of Alibaba Guaranteed is expected to enhance the performance of Alibaba’s Alibaba International Digital Commerce Group (AIDC) segment, which currently stands as the primary growth engine of the corporation.
The AIDC segment, comprising Lazada, AliExpress, Trendyol, Alibaba.com, and other international retail and wholesale businesses, reported revenues of RMB 27.45 billion ($3.8 billion), marking a 45% year-over-year surge.
The Logistics Landscape: A Lucrative Arena
Reportedly, the global logistics market is anticipated to hit $18.35 trillion by 2032, boasting a compound annual growth rate (CAGR) of 6.3% from 2024 to 2032. Alibaba stands well-poised to leverage this growth trajectory with its expanding global logistics services.
Alibaba has rolled out Logistics Marketplace, an economical logistics solution tailored for SMEs in the United States. This innovative offering acts as a central hub connecting buyers with pre-vetted logistics service providers, enabling businesses to deliver customized solutions to their target audience.
Designed to revolutionize the supply chain strategies of various enterprises, this service aims to eliminate traditional logistical hurdles, thus streamlining operations.
Prior to this, Cainiao, Alibaba’s logistics arm, revealed the introduction of a “consolidated shipping” service in the United States, fortifying its overseas logistics suite.
This cross-border service consolidates multiple orders from different Chinese e-commerce platforms and transports them to U.S. customers via efficient air and sea routes, drastically reducing delivery times to as short as five days.
Fortifying its logistics services on a global scale is projected to boost Alibaba’s financial performance in the short run. Analysts estimate the company’s total revenues for 2025 to reach $138.63 billion, showcasing a 6.2% year-over-year increase.
Nevertheless, Alibaba faces stiff competition in the logistics arena from giants like Amazon, JD.com, and eBay, all of which are intensifying efforts to fortify their logistics services.
Competing in the Logistics Territory
Alibaba currently contends with fierce competition in the logistics space, pitting itself against the likes of Amazon, JD.com, and eBay. These rivals are actively enhancing their logistical capabilities, setting a challenging backdrop for Alibaba.
While Alibaba has seen a 3.2% return on shares year-to-date, it lags behind the 8.8% gain of the Retail-Wholesale sector.
Amazon’s comprehensive supply chain service, “Supply Chain by Amazon,” remains a standout feature, empowering third-party sellers to manage inventory pickup, international shipping, customs clearance, bulk inventory storage, and last-mile delivery.
Meanwhile, JD.com’s logistics arm, JD Logistics, has expanded its international express delivery service from China to various districts, including destinations in the U.S., the U.K., and Germany, offering efficient solutions for a wide array of products.
eBay, on the other hand, is making strides with its International Shipping Program, enabling international buyers to shop on eBay.com and benefit from parcel processing, shipping costs, and customs clearance services facilitated by third-party providers.
