If the platform does not own the goods, what makes overseas buyers trust suppliers and complete transactions?
First visit
Reading language
You can read the course in one language and ask for explanations in another. We never guess your language from your name, religion, nationality or location.
Background
Alibaba.com serves overseas business buyers and suppliers in China and elsewhere; transactions usually start with enquiries, quotations, samples and wholesale or custom orders. Platform ownership, merchant location, sourcing location and buyer location must be distinguished.
Operating model
The platform provides supplier stores, verification, marketing and cross-border value-added services, while buyer and supplier contract directly. International wholesale revenue relates to these services rather than the margin on goods sold by the platform itself.
Evidence
Evidence: Alibaba Group's December 2025 quarterly results state that International Commerce Wholesale revenue was RMB 6.85 billion, up 10% year on year, primarily due to higher cross-border value-added service revenue. This is the group's international wholesale segment, not Alibaba.com standalone revenue.
Teaching points
A platform's revenue logic depends on its role in the transaction. Matching and value-added-service platforms do not earn the same as goods resellers; first identify the transacting parties, whether the platform owns goods, and who handles acquisition and fulfilment.
Discussion questions
For classroom discussion; there is no single correct answer.
Does rising cross-border value-added service revenue mean more convenience or higher costs for sellers?
Linked entries
Ecommerce platforms
PF-alibabaSources and update time
Alibaba Group Announces December Quarter 2025 Results
Alibaba Group（SEC EDGAR） · 2026 · SRC-089