Alibaba logistics firm Cainiao launches next-day cross-border deliveries by way of Hong Kong

Alibaba, which also owns the South China Morning Post, has been advancing the cross-border capabilities of its logistics firm amid increased competition in overseas markets from newer rivals that also operate out of China to leverage the cheap domestic supply chain. These include fast-fashion retailer Shein, PDD Holdings’ budget e-commerce app Temu, and ByteDance-owned TikTok.

Earlier this month, Cainiao announced a new warehouse partnership with American online vitamins retailer iHerb that will be able to process up to 15,000 orders per day. In January, Cainiao opened a parcel-forwarding service for consumers in the US that will bundle multiple purchases from Chinese e-commerce sites before sending the combined package overseas by sea or by air, cutting costs or delivery times.

As one of Alibaba’s most promising businesses, Cainiao was at one point planning an initial public offering in Hong Kong under a massive corporate restructuring meant to split the parent company into six distinct business groups. The IPO plans were scrapped in March.

Alibaba has instead planned to “double down on its investment in Cainiao” given the unit’s “strategic importance”, company chairman and co-founder Joe Tsai said at the time, adding that it is crucial for Alibaba to achieve deep integration between Cainiao’s operations and its e-commerce businesses to provide “the most competitive consumer experience”.