Alibaba.com is a platform operated by the Chinese e-commerce company of the same name that focuses on international business customers.
Sopa Images | LightRocket | Getty Images
The platform is part of Alibaba's fast-growing international business, which also sells directly to consumers overseas through sites such as AliExpress.
Chinese consumers have long enjoyed access to delivery tracking and favorable return policies, but small and medium-sized businesses buying from cross-border e-commerce platforms have missed out due to the increasing complexities of international trade.
Alibaba.com's new service aims to give shoppers more precise delivery dates and free local returns, the company said in a press release.
“We believe this is in line with the current global trend,” Alibaba.com President Guo Zhang said in an interview Thursday, with comments delivered in Chinese and translated by CNBC.
He noted the trend is toward an increasingly fragmented supply chain, with more local companies, whether in the cosmetics or automotive industries, needing to buy globally to protect their profit margins.
The online platform primarily sells products from China-based suppliers to small and medium-sized businesses in Europe, the United States and other parts of the world. While Alibaba.com's website says products can be purchased individually or in bulk, its user registration page says “suppliers prefer to do business with businesses.”
Zhang claimed that over the past five years, the number of shoppers on Alibaba.com has at least tripled, with total online sales reaching about $50 billion. GMV measures total sales in a given period of time.
Zhang said some of the most popular products sold on Alibaba.com over the past three to four years include machines for custom printing and laser cutting T-shirts.
He said demand for such machines has risen as interest in diversifying supply chains has grown since the coronavirus pandemic subsided.The growth of the new energy vehicle industry is also creating demand for new car parts sold by Alibaba.com, Zhang said.
He said sporting goods are also popular with European customers.
In November, Alibaba.com invested in German B2B company Visable and its European marketplace europages.
Alibaba.com works with many EU-based suppliers who sell within the bloc, Zhang said, adding that the company aims to accelerate the region's digitalisation by making greater use of technology in its business.
He noted that trade activity within the EU is far greater than trade activity with other EU countries.
Zhang said Alibaba.com will also start introducing artificial intelligence tools to its platform this year.
These include retailers using AI to quickly generate product descriptions with search keywords and to provide customer service support outside of business hours, he said.
