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Alibaba (BABA) Boosts Logistics Services With Alibaba Guaranteed

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Alibaba’s (BABA - Free Report) international business-to-business (B2B) e-commerce arm,, introduced Alibaba Guaranteed for global small and medium-sized enterprises (SMEs).

Alibaba Guaranteed is a platform that simplifies B2B cross-border trade for SMEs by offering supply chain reliability. It provides secure sourcing of products at fixed prices, with guaranteed delivery within 72 hours.

The platform also offers after-sales services, quick money back and free local returns, facilitating buyers.

Alibaba has added strength to its global logistics services on the back of its latest launch. This, in turn, will aid Alibaba in gaining solid momentum across SMEs in the United States and around the globe by helping these businesses expand their global reach.

Moreover, the launch of Alibaba Guaranteed will strengthen its Alibaba International Digital Commerce Group (AIDC) segment’s performance, which is currently the key growth driver of the company.

The AIDC segment, which comprises Lazada, AliExpress, Trendyol, and other businesses operating in the international retail and wholesale markets, generated RMB 27.45 billion ($3.8 billion) in revenues, exhibiting year-over-year growth of 45%.

Strengthening Logistics Services Boost Prospects

Per an EMR report, the global logistics market is expected to reach $18.35 trillion by 2032, indicating a CAGR of 6.3% between 2024 and 2032. Alibaba is well-positioned to capitalize on this growth opportunity on the back of its expanding global logistics services.

Alibaba launched an affordable logistics solution, namely Logistics Marketplace, for SMEs in the United States. The new solution offers a point-of-contact for buyers and pre-vetted logistics service providers, enabling businesses to offer tailored solutions to their target customers.

This service is meant to reshape the supply chain strategies of various enterprises and reduce traditional logistics hurdles.

Earlier, the company’s logistics arm, Cainiao, announced the launch of a "consolidated shipping" service in the United States, bolstering its overseas logistics offerings.

The cross-border service packages multiple shopping orders from various Chinese e-commerce platforms and delivers them to U.S. customers via air and sea transport routes, reducing delivery times to as little as five days.

Strengthening logistics services globally will likely bolster the company’s overall financial performance in the near term.

The Zacks Consensus Estimate for 2025 total revenues stands at $138.63 billion, indicating year-over-year growth of 6.2%.

However, competitive pressure, rising expenses related to new initiatives, macroeconomic uncertainties and unfavorable foreign exchange fluctuations, pose a serious risk for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alibaba’s shares have returned 3.2% in the year-to-date period, underperforming the Zacks Retail-Wholesale sector’s gain of 8.8%.

Competitive Scenario in the Logistics Space

Alibaba faces stiff competition in the logistics space against the likes of Amazon (AMZN - Free Report) , (JD - Free Report) and eBay (EBAY - Free Report) , which are also making strong efforts to bolster their logistics services.

BABA has also underperformed AMZN, JD and EBAY’s growth of 21.8%, 6% and 23.7%, respectively, in the year-to-date period.

Amazon’s end-to-end supply chain service called "Supply Chain by Amazon" remains noteworthy. It allows third-party sellers to pick up inventory, ship across borders, handle customs clearance, store bulk inventory and deliver to customers.

Meanwhile, announced that its logistics arm, JD Logistics, expanded its international express delivery service from Guangzhou and Shenzhen to nearly every district in China. The service offers efficient logistics solutions for various products, including documents and apparel, among others, with the United States, the U.K. and Germany as top destinations.

eBay, on the other hand, gains solid momentum across its International Shipping Program. This service allows buyers outside the U.S. to purchase items listed on, including parcel processing, shipping costs and customs clearance services, through third-party service providers.

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