Taobao, the main retail platform of Alibaba Group, will provide free shipping for clothing purchases and will also offer free returns to specific regions, including Macau.
Starting Aug. 3, the move aims to enhance the e-commerce giant’s competitive position against other fast-fashion giants Temu and Shein, as reported by Nikkei Asia.
The free shipping initiative will initially target consumers in Singapore, South Korea, Taiwan, Hong Kong, and Macau, with plans to extend these initiatives to other Asian markets by the end of year.
The program both encourages more merchants to join and addresses the high return rates associated with live-streaming sales events by offering free returns. Items returned will be sent to Taobao’s overseas warehouses, mitigating risks for sellers who typically face challenges with returns to original vendors in China.
Taobao’s logistics arm, Cainiao, will oversee the shipping process, ensuring a seamless experience for both buyers and sellers.
An unnamed senior manager at Taobao told the media that this initiative represents “the most strategic change by Taobao this year,” highlighting the intense competition in China’s e-commerce sector, which has led to dwindling profit margins.
The initiative also aligns with Alibaba’s broader strategy to support top merchants in exploring international markets, enhancing their global presence. Nadia Shaw
