Expanded free shipping to up global reach

Alibaba Group's e-commerce platform Taobao said on Thursday that its free global delivery service will expand to 12 countries and regions during the June 18 shopping carnival, as the company steps up its international footprint.

Experts said the move will let overseas consumers enjoy high-quality and cost-effective China-made commodities, bolster the development of international trade and improve the competitiveness of Chinese online marketplaces in the global e-commerce landscape.

The expansion of the global free shipping zone not only reduces costs, but also shortens cross-border delivery times, allowing more consumers to engage in cross-border shopping more effectively, they added.

According to Taobao, consumers from countries such as Singapore, Malaysia, South Korea, Australia, Japan, Thailand, Cambodia, Kazakhstan and Mongolia will enjoy free delivery services when their purchases reach a certain amount. It is the first time that Kazakhstan and Mongolia have been included in the free shipping zone of Taobao.

During the midyear promotional event, customers in these countries and regions will enjoy steep discounts and direct price cuts like domestic shoppers, as well as a convenient returns service, which allows shoppers to return unwanted items at nearby collection points.

Taobao said it will accelerate steps to expand its presence in overseas markets this year, and support merchants in exploring the international market and achieving business growth.

Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, said, "Through such expanded free delivery measures, Taobao has not only significantly lowered the shopping threshold for overseas consumers and improved their shopping experience, but also reinforced its competitiveness in the global e-commerce market."

Hong noted that the move will help Taobao rapidly expand its footprint abroad and attract more international purchasers, while the free shipping service reflects the company's emphasis and commitment to overseas markets, which is conducive to establishing a good brand image on the global stage.

Meanwhile, Chinese e-commerce enterprises are facing some challenges in the process of overseas expansion, such as an increasingly complex international trade environment, cultural differences and localized operation, Hong said.

They should develop a deep understanding of local consumer habits, and relevant laws and regulations in targeted markets, while establishing an efficient and reliable cross-border logistics system, Hong added.

Jiang Han, a senior analyst at market consultancy Pangoal, said the expansion of the global free shipping zone will greatly appeal to price-sensitive consumers and is conducive to lifting their purchasing willingness and frequency, as well as bolstering the sale of products.

"It is noteworthy that the expansion plan includes Kazakhstan and Mongolia, which indicates that the e-commerce platform is exploring more opportunities in emerging markets, and will enable merchants to reach potential overseas customers, thus promoting the development of cross-border trade," Jiang said.

Chinese online retailers making inroads into overseas e-commerce markets should adjust product strategies and service models in accordance with the demands of various countries and regions, improve the efficiency of cross-border logistics and delivery, and strengthen the establishment of compliance systems in overseas markets, he added.

The country's cross-border e-commerce market hit 2.63 trillion yuan ($365 billion) in 2024, a year-on-year increase of 10.8 percent, according to the General Administration of Customs.

The enhancement of logistics infrastructure is the key for e-commerce platforms to expand their global free shipping zone.

Cainiao, the logistics arm of Alibaba, recently said that it will further speed up the construction of its local express delivery network in Spain and Portugal, as part of its broader push to enhance logistics capabilities to better meet the delivery needs of local online sellers and provide more efficient and flexible logistics solutions for merchants.

By integrating AI-driven innovations, Alibaba encourages Cainiao to build a logistics network that serves the open market, addresses diverse customer needs and acts as a shared infrastructure for global business partners.