Alibaba's New Strategy: Targeting Small Businesses In The US And Europe

Alibaba Group Holding Ltd. is expanding its global reach by launching new services aimed at small businesses in the U.S. and Europe. On Thursday, Alibaba introduced “Alibaba Guaranteed,” a service designed to offer more reliable delivery dates, secure payments, and streamlined dispute resolution,

What Happened: The new service is part of Alibaba’s broader international strategy, which includes selling directly to consumers through platforms like AliExpress, CNBC reported. The company aims to provide small businesses with benefits similar to those enjoyed by Chinese consumers, such as delivery tracking and favorable return policies.

Kuo Zhang, president of, highlighted the growing fragmentation in supply chains and the increasing need for local businesses to source products globally to maintain profit margins. He noted that the number of buyers on has tripled over the past five years, with gross merchandise value reaching approximately $50 billion.

Popular products on the platform include custom printing machines, laser cutters, and new car parts, driven by the rise of the new energy vehicle industry and post-pandemic supply chain diversification. also invested in German B2B company Visable and its European marketplace Europages last November.

Additionally, plans to integrate artificial intelligence tools to help merchants generate product descriptions and provide customer service support during off-hours.

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Why It Matters: Alibaba’s latest move to target small businesses in the U.S. and Europe comes amid a series of strategic initiatives aimed at bolstering its global presence. Recently, the company has been leveraging artificial intelligence to enhance its competitive edge in the e-commerce sector. In May, Alibaba introduced Wenwen, an AI chatbot on its Taobao platform, to provide personalized product recommendations, showcasing its commitment to integrating advanced technology into its services.

Additionally, Alibaba has been actively seeking to expand its brand influence globally. On May 27, the company signed soccer legend David Beckham as the global brand ambassador for its e-commerce platform, AliExpress. This partnership aims to enhance AliExpress's global presence, especially amid intense competition from rivals like PDD Holdings and Shein.

Furthermore, Alibaba’s recent fourth-quarter earnings report showed signs of a potential rebound, with analysts optimistic about the company’s cloud business achieving double-digit growth in 2025. This optimism is crucial as Alibaba continues to navigate a volatile market environment and seeks to strengthen its foothold in international markets.

Price Action: On Thursday, Alibaba Group Holding Ltd. closed at $85.50 on the NYSE, according to Benzinga Pro. The 52-week range is $58.01 to $125.84.

Read Next: Ming-Chi Kuo’s Prediction Comes True As Nvidia Surpasses Apple Becoming The Second Most Valuable Company: Strong AI Growth Contrasts ‘Innovation Challenges’ Faced By Consumer Electronics

Photo via Shutterstock.

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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