China’s eCommerce giant Alibaba is hoping to boost cross-border trade by upgrading its wholesale business and adding a new sourcing channel, The Payers reported on Monday (Aug. 19).
The new channel will help facilitate international purchases and allow Alibaba buyers to get homogenized products instead of tailor-made offerings.
Alibaba also has its sights set on establishing a separate channel for customized offerings using algorithms to distinguish characteristics of buyers. The digital marketplace boasts 150 million worldwide registered users strives to help suppliers reach a global audience.
Speaking at a global suppliers summit in Shanghai, Alibaba Co-General Manager Zhang Kuo said the move complements the existing supply channels and offers global SMB buyers more choices and greater variety.
“This is designed on top of the existing OEM channel, adding a new piece to the fragmented, high-frequency, and personalized procurement ordering puzzle. This is a major trend we need to capitalize on,” Zhang told China Daily.
Alibaba handles transactions in 22 currencies across 56 economies supported by its financial arm Ant Financial supports, Cheng Li, chief operating officer of Ant’s international business, told the news outlet.
Alibaba is also seeking to launch a special digital zone featuring Yiwu, China’s hub for exports of small merchandise, in a bid to smooth cross-border transactions for millions of SMBs. Alibaba posted results earlier this month that topped expectations as eCommerce sales continued to surge by double-digit percentages. The company also made strides to tap consumers in less developed areas of the country. The numbers seem to show that despite economic slowdowns and an ongoing trade war with the United States, the Chinese consumer is still spending.
Alibaba Co-Founder Joseph Tsai said the consumption trends are in place despite challenges to the broader economy posed by secular shifts in demographics and digitization. There has been particular strength in the emergence of a middle class in China’s countryside.