Tmall and Taobao, two of Alibaba Group Holding Ltd. (NYSE: BABA)’s largest online marketplaces in the Chinese market, is introducing free international shipping to increase its competitiveness. Alibaba Group Holding is especially interested in making Taobao and Tmall more competitive in the clothing segment where major players such as Temu and Shein reign supreme.
The recent move is meant to boost business among clothing merchants on the two Alibaba platforms by eliminating international shipping costs and making it more affordable for them to sell clothing to customers in foreign markets. Competitors such as Shein and Temu have enjoyed significant market penetration in recent years, particularly in the massive and lucrative North American market, and will undoubtedly give the Alibaba platforms a run for their money.
As Alibaba looks to expand its e-commerce business into other established markets, the international shipping subsidy program will be a godsend for merchants that couldn’t sell internationally because of the shipping costs. Taobao and Tmall merchants who qualify for the program can enroll in the new free international shipping plan and start selling to several international customers without covering the shipping costs themselves or including them in their product prices.
Merchants dealing in the pan-fashion category, which includes women’s and men’s clothes, shoes, accessories, bags, and outdoor and sports apparel, will be eligible for the program, Alibaba said. The e-commerce giant noted that apparel merchants have a major advantage in the global fast fashion sector because they can rely on China’s manufacturing might for a constant supply of products and their world-leading experience in e-commerce operations to stay ahead of their competitors.
Taobao merchants will deliver the ordered products to consolidation warehouses in China when foreign customers order products in the pan-fashion category. Once the products are delivered to the designated warehouse, Alibaba will handle international delivery. Eligible merchants can use the service to deliver products to customers in Asian markets such as South Korea, Malaysia, Singapore and Taiwan, Alibaba said. The company will most likely incorporate additional markets to the program in the future.
The initiative is a bold attempt by Alibaba to outcompete Temu and Shein, relatively new entrants into the e-commerce segment that have surpassed Alibaba’s marketplaces despite its first-mover advantage. Temu is currently trying to attract Chinese merchants by offering a “one-stop service” that covers marketing, pricing and even customer services. This service also allows merchants and manufacturers to ship their products to designated warehouses while Temu handles delivery.
About ChineseWire
ChineseWire (“CW”) is a specialized communications platform with a focus on promising China-based companies that are listed in North America. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CW brings its clients unparalleled recognition and brand awareness. CW is where breaking news, insightful content and actionable information converge.
For more information, please visit https://www.ChineseWire.com
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
ChineseWire
Los Angeles, CA
www.ChineseWire.com
310.299.1717 Office
[email protected]
ChineseWire is powered by IBN
