Alibaba.com launched a new dropshipping solution and a US$500,000 grant program to enhance SMEs’ e-commerce capabilities on 7 September 2021. Merchants can purchase products from third-party suppliers that can ship products directly to the consumer.
Aliababa.com’s new one-stop dropshipping solution enables users to test new products from platform-vetted merchants, provide shipping transparency and assistance in customer support.
The platform has recently upgraded its delivery services, product search capability, and its livestreaming feature in time for its biggest sales event of the year, Super September.
The platform also partnered with Hello Alice, a resource platform for U.S. SMBs, to launch a competition to find businesses with the most innovative product ideas or strategies. The winner could take home US$500,000 in cash.
Alibaba Retail Business Highlights
Alibaba’s annual active consumers on its China retail marketplaces reached 912 million for the twelve months ended June 30, 2021, according to its quarterly financial results.
Annual active consumers of the Alibaba ecosystem across the world reached about 1.18 billion for the 12 months ended June 30, 2021, an increase of 45 million from the twelve months ended March 31, 2021.
This includes 912 million consumers in China and 265 million consumers overseas served by Lazada, AliExpress, Trendyol, and Daraz. Lazada recorded over 90% year-over-year order growth for Q2.
Mobile MAUs on Alibaba’s China retail marketplaces reached 939 million in June 2021, an increase of 14 million from Q1.
In Q2 2021, during the quarter ended June 30, 2021, Alibaba’s China retail marketplaces recorded solid physical goods GMV growth that reflected strengths in categories such as apparel and accessories, home furnishing, and consumer electronics.
For the twelve months ended June 30, 2021, annual active consumers of Taobao Deals (rebranded to Taote) grew to over 190 million.
Alibaba’s consumer-to-consumer community and marketplace in China, Idle Fish (Xianyu), continues its robust growth with MAU reaching over 100 million throughout the quarter. Through Xianyu, users can find a rich variety of secondhand, recycled, refurbished, for-rent, and vintage products.
This year’s 6.18 Mid-Year Shopping Festival helped brands and merchants to launch new products and acquire as well as retain customers.
Alibaba’s Community Marketplaces business continues to exhibit rapid growth, with GMV and gross floor area of Alibaba’s regional distribution centers (RDC) growing around 200% and 260% quarter over quarter, respectively.
Sun Art in Q2 achieved approximately 28% year-over-year growth in online orders, with the shared inventory initiative with Tmall Supermarket being the biggest growth contributor.
In addition, Sun Art is the top supplier of Alibaba’s Community Marketplaces business.
As of June 30, 2021, Sun Art has stores in 235 cities across 29 provinces in China, which is supported by its expertise in building strong regional procurement and supply chain capabilities in perishables, FMCG and general merchandise categories.
Tmall Hey Box: Alibaba’s best seller incubator for top brands
Alibaba has stepped up its investment in Meituan competitor Ele.me’s user acquisition and user experience enhancement, resulting in strong order growth of over 50% year-over-year during Q2.
In the June 2021 quarter, Alibaba’s cloud computing revenue grew 29% year-over-year to RMB16,051 million (US$2,486 million), primarily driven by robust growth in revenue from customers in the Internet, financial services and retail industries.
Its online video portal Youku’s daily average subscriber base increased 17% year-over-year.
Revenue was RMB205,740 million (US$31,865 million), an increase of 34% year-over-year. Excluding the consolidation of Sun Art, its revenue would have grown 22% year-over-year to RMB187,306 million (US$29,010 million).
Net income attributable to ordinary shareholders was RMB45,141 million (US$6,991 million), and net income was RMB42,835 million (US$6,634 million). Non-GAAP net income was RMB43,441 million (US$6,728 million), an increase of 10% year-over-year, mainly due to an increase in share of profit of equity method investees.
Diluted earnings per ADS was RMB16.38 (US$2.54) and diluted earnings per share was RMB2.05 (US$0.32 or HK$2.46). Non-GAAP diluted earnings per ADS was RMB16.60 (US$2.57), an increase of 12% year-over-year and non-GAAP diluted earnings per share was RMB2.08 (US$0.32 or HK$2.50), an increase of 12% year-over-year。