Alibaba’s B2B e-commerce platform eyes 20% growth in 2024, shrugs off rising competition

Chinese merchants on the platform saw the combined value of their exports reach US$350 billion last year, or roughly 10 per cent of the value of all Chinese exports, which increased 7 per cent in 2023 to US$3.6 trillion.

Alibaba.com has more than 200,000 suppliers, 90 per cent of whom are based in China. Half of the products offered on the platform are not for consumer use, according to Zhang. These include machinery tools, construction materials, laser cutting devices and even small food trucks.

“The turnover of non-consumer goods is growing faster than consumer goods,” he said.

Alibaba also runs a number of consumer-facing apps, including Lazada and AliExpress.

For sellers, the service is similar to a model known as “half-custody”, in which suppliers outsource shipping, delivery, payment and client services to the platform. Zhang said lowering the barrier to foreign trade encourages Chinese merchants to directly pursue foreign buyers, as these companies typically do not have the ability to deal with complicated cross-border trade procedures themselves.

In Yiwu, a city in eastern Zhejiang province known for small manufacturers, the number of Alibaba.com clients increased 70 per cent in the last two quarters.

Last October, it introduced an AI tool to help users display goods online and to manage correspondence with clients. The tool’s annual recurring revenue has reached US$100 million, according to Zhang.

In July, the platform will launch an AI tool to help buyers find the right products.

“As long as you have an idea, an intention, or a picture, we can help you to find the right merchants to make the right products,” Zhang said.